Life Insurance Policies
Wondering if a pre-existing medical condition could keep you from getting life insurance? We answer some of the most common questions here. Many Americans believe that simply the presence of a health condition can keep them from getting life insurance, but the truth is that you don't necessarily have to be the picture of health in order to qualify for a life insurance policy. Health conditions are taken into consideration, but they are generally not automatic disqualifiers.
For those wondering how their health might affect their chances at securing affordable life insurance, we'll answer some of the most common questions we hear.
In order to get term life insurance, you must fill out an application, often take a medical exam and go through something called underwriting. Underwriting is simply a process in which the insurance company reviews many factors including your medical history, hobbies, driving record, age in order to determine how risky it would be to insure you.
Your health is a key factor in this process. The more health problems you have, or the more serious those health conditions are, the greater your mortality risk. Based on your health profile as well as a number of other factors, you'll be put into a risk category, which will determine the rate you pay. These can vary in name and number by insurance company. For example at AIG Life Insurers, our rate classes look like this:
So in which of these four will you end up? It's difficult to say without taking each individual case into consideration. The reason for this is that your classification depends not just on lifestyle and health factors, several additional elements such as age, family history, or travel plans.
In short, yes you could be. It is certainly possible to secure life insurance with an existing health condition. For some health conditions, a simple disclosure may be all that is required of you. However, for many illnesses or physical conditions, you may need to go through additional medical screenings. This might include an EKG test for heart conditions, cancer testing or a review of your prescription drug records.
In addition to increased medical scrutiny, you should also be prepared for the possibility that you may have to pay a higher premium for your life insurance policy. Your rate class is dependent on health and lifestyle factors, so if you have one or medical conditions deemed serious, it could affect your risk category.
While the list of health conditions that could affect the rate you'll pay for life insurance is quite long, there are a few health conditions that are more common than others. Here is a look at five common health conditions we see and how they may be handled.
There are! It's important to remember that even if you're unfortunately denied for a life insurance policy, there are other options available to you. At AIG Life Insurers, we offer Guaranteed Issue Whole Life Insurance as well as Accidental Death and Dismemberment Insurance. Neither of these types of insurance requires a medical exam, and both can help provide your family with much need financial assistance if you were to pass away unexpectedly.
One of the most important things you can do as you search for life insurance if you have a health condition is to be upfront and honest with your agent. And do your research. There are a lot of options, and we can probably help you find one that best fits your circumstances and needs.