7 Tips for Getting Life Insurance with a Preexisting Condition

Ross Quade | Life Insurance | 16 Oct, 2014 | No Comments

Life Insurance

Most  people hate shopping for life insurance and will put it off until later, not knowing that something like a medical condition or death could be waiting right around the corner. Once you are diagnosed with a health condition, it’s going to be a lot tougher for you to obtain health and life insurance policies. Thankfully, there have been laws passed that now prevent health insurers from discriminating against those with a preexisting condition. However, the life insurance providers are still in control of whom they accept and decline. Below, you’ll find seven tips to help you get life insurance coverage even when you have a preexisting condition.

1.   Check the Insurance Laws Within Your State

There are a couple of states throughout the U.S. that put restrictions on how insurance companies can single out individuals with medical conditions. See if the state you live in offers you leeway to getting the life insurance you need to protect your family.

2.   Look for a Young Insurance Company

Brand new insurance companies are looking for business, which means they’ll usually take it in any way they can. Most newer companies will take on clients even it if means giving out policies to individuals with preexisting health conditions. Of course, this will be determined by the severity of your case. You may not be able to get coverage if you are knocking on death’s door because paying out a large lump sum so soon could be devastating to a new insurance provider.

3.   Go to an Impaired-Risk Specialist

When you can’t get approved from an insurance provider, you can go to brokers who specialize in clients with pre-existing medical conditions. These are known as impaired-risk specialists. They act as brokers and will look into your particular case down to the miniscule detail.  They work with insurers specifically within this niche market so to help you get the coverage you need. The broker assesses your case to determine your risk level and will then offer coverage based on those facts. Being upfront and honest about your medical profile can help you get a better result. Taking measures to improve your health and lifestyle can also make things easier.

4.   Prepare Yourself to Pay Higher Premiums

Because you’re not at the same risk level as other people without pre-existing health conditions, you can’t expect to pay the same price as they would. Understanding that you will likely pay higher premiums than you’d like is important. If you really want to get a life insurance policy, this may be the only way you can do so.

5.   Apply for a Guaranteed Issue Policy

You’ve likely seen late-night advertisements for insurance policies that guarantee issuance no matter your condition or life situation, as long as you meet the age limit. They promote that no health questions will be asked and no health screenings are required. However, these policies come with hefty premiums and the death benefits are typically limited. The other downside is that your premiums can quickly outweigh the death benefit. Your best bet is to use this as short-term coverage until you can find a normal life insurance policy. If you’ve already tried risk-impaired brokerages, then this may be your only available option. With this option, make sure to still let them know about your health condition, so to ensure that the policy won’t be canceled if you were to pass away early.

6.   Invest in Mutual Funds

One place where your money won’t be turned down is in the banking world. With mutual funds, you can invest your money and get a good return on investment. If you are currently banking somewhere, you can ask a broker there about available mutual funds and the interest rates you’ll receive on the account. Make sure to add beneficiaries to the account, so that if you were to pass away the money can go to your loved ones.

7.   Enroll in a Group Life Insurance Plan 

A lot of employers offer group life insurance policies. See if your employer offers one that you can enroll in. A lot of these plans don’t require health screenings, which will enable you to slide pass without being targeted for your pre-existing medical condition. In most cases, you will have to sign up during open enrollment in order to bypass medical examinations. This option is typically more affordable than other plans because it is a group policy. There are other group coverage options you can consider if your employer doesn’t offer one. You’ll just need to find people to enroll into the policy with you.

Finding life insurance can be hard when you have a pre-existing condition, but it isn’t always impossible. The type of condition you have and its severity will play a major role in whether you get approved and how high your premium rates will be. A bonus way to help improve your chances of getting a life insurance policy is to make healthy changes to your lifestyle. Going to the doctor more often, working out and improving your diet are factors insurers are looking for now, especially if it has been proven that these changes can prolong life with that particular condition. Hopefully, you’ll find these tips helpful enough to get you a policy to protect your loved ones from your untimely demise.


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