HOW TO GET LIFE INSURANCE WHEN YOU HAVE A PRE-EXISTING CONDITION
If you have a pre-existing health condition, such as diabetes, liver disease, heart disease, cancer, high blood pressure or kidney disease the idea of applying for and potentially being turned down for life insurance can be quite stressful. But it doesn’t have to be. While pre-existing health conditions like these can be obstacles in the process of getting life insurance, they don’t have to be roadblocks.
If you are concerned that you might be in a position where you face any of these obstacles, then it is vital that you connect with someone that can help you overcome them. Connect with a CS Insured agent, and they will be able to keep the delays and obstacles to a minimum while also securing you the best rates possible.
DO YOUR OWN RESEARCH BEFORE DOING ANYTHING ELSE
Buying life insurance is not something that people look forward to doing, and for that reason, people often handle it in one of three ways:
1. They put it off. They avoid doing it until something happens, maybe they have a baby or a parent gets sick and realize just how critical it is to have.
2. They don’t get it. This is a big mistake and a choice that does nothing but hurt people. You need life insurance to protect your loved ones.
3. They rush to get it done. Now, compared to the other two this sounds like a great option, however, if you have a pre-existing condition, it is essential that you take some additional time to do your research and to be patient. This is because obtaining high-risk life insurance is likely going to require both you and your insurance agent do a little bit of work first.
If you are looking to obtain life insurance when you have a pre-existing illness you need make sure that you not only do your research but that you also understand what you need to do, and what kind of questions that you will be asked. Often there are additional documents required such as letters explaining your health conditions, prescription information, or perhaps more detailed information depending on if your life insurance agent wants to get a quote from a carrier.
However, before you even make an appointment to speak with an agent, you should take some time to try and gather as much information regarding your condition as you can. Not only may you need this documentation and the dates of medical diagnoses or treatments, but you might also need the name, doses, and frequency of any medications you take. Having this information readily available can reduce the guesswork for your life insurance agent that they can pair you with a proper carrier.
FIND A KNOWLEDGEABLE, QUALIFIED AND INDEPENDENT LIFE INSURANCE AGENT TO WORK WITH
An independent life insurance agent can act as a broker and therefore and present rates from more than one carrier. This means that by you deciding to work with an independent agency not only are you going to be able to find out all of your options –
you will be able to do so in an unbiased setting. Doing this also avoids the wasted time and often significant amount of frustration that tends to go hand in hand with shopping around and calling a variety of different life insurance agents. Independent life insurance agents are able to provide you with quotes from numerous insurance companies and also transact with them on your behalf.
Your independent life insurance agent will help guide you to the carrier at which you will qualify for the lowest premiums. This will be based on both your past and current health. You should make sure that you fill your agent in on all necessary details regarding your pre-existing health condition and they should be knowledgeable about how best to present your case. This might mean drafting cover letters, seeking preapprovals or even helping you make a choice between several carriers based on medical examination requirements.
BE UPFRONT AND DETAILED ABOUT YOUR PRE-EXISTING CONDITION
When applying for life insurance, it is critical that you are open and honest about your health. Be as open as you can be when speaking with your life insurance agent. Now depending on your situation, this can be intimidating, but it really, it shouldn’t be. This is because your insurance agent – as long as they are not tied to any one company – is on your side as is representing you and your best interests. If they are unaware of something to do with your health condition they will not be able, represent you adequately and not be able to find the best insurance for you. Remember, it doesn’t matter how qualified or experienced an agent is – they only know the information that you provide.
Answer every question that you are asked in as much detail as you can. Knowing details like dates of diagnosis, lab results, names of medications, tests, and treatments can help a lot.
GET QUOTES FROM A NUMBER OF DIFFERENT LIFE INSURANCE PROVIDERS
One of the reasons it is so important to work with a life insurance agent that is not committed to one company is that you will be able to utilize your agent’s ability to shop around for the best policy. Remember to get quotes from multiple companies. If you only get one you will likely be missing out on a
better quote. This is incredibly important for high-risk cases. This is due to the fact that applicants with pre-existing health conditions may be reviewed differently from one carrier to another.
When you do get your quotes, ask your life insurance agent about the insurance companies that he or she presents to you. This will be helpful especially if you are unfamiliar with any of them – after all, you want to choose a company you’re comfortable with. Your life insurance agent should also be able to answer any concerns or questions that you have with each carrier specifically. They can also help you to compare them on other factors, not base your decision solely on the price.
PICK THE BEST TYPE OF POLICY FOR YOU
When you live with a pre-existing health condition, you may be limited in the kinds of life insurance policies that you are able to apply for.
For example, fully underwritten policies require a complete medical, exam, questionnaire, various prescription and background checks as well as a physician’s statement. This means that with some pre-existing conditions, you may not be able to entirely qualify for a fully underwritten policy, which means that a traditional term life insurance option would be off the table. Additionally, some riders or benefits, like a waiver of premium rider that provides the policyholder with protection in case of disability, may not be available depending on what your pre-existing condition is.
However, a graded benefit life insurance policy only requires few health questions and no exams. This would provide someone that has a pre-existing condition to get life insurance, but the cost would be significantly higher, and the payout structure would vary depending on the case.
A guaranteed acceptance life insurance policy is another option as it assures that the applicant cannot be turned down and has no medical questions or exams. Sounds great, right? While it does have it’s positives, there are a few things that need to be considered before signing on the dotted line. The policyholder will be significantly limited by how much coverage they can buy. Often, these policies have the highest costs per thousand dollars, and the payout structure, as well as the grading policy, may not provide complete benefits for at least three years.
IF YOU CAN, TAKE THE MEDICAL EXAM
The reality is that the best rates are reserved for those who take part in and complete the medical exam. This is due to the fact that the less the life insurance company knows about you, the more it needs to charge in premiums in order to cover the risk that they are taking.
While it might be stressful, most people with pre-existing conditions should take the exam. Completing the medical exam provides them with their best shot at getting a policy with enough death benefit to cover the necessities and not cost an astronomical amount. If for some reason, the medical exam does not go as planned, you can always default back to a no-exam life insurance policy. This might cost a little more in premiums, but it’s better than a decline.
TAKE THE TIME TO COMMUNICATE WITH YOUR DOCTOR AND OTHER HEALTHCARE PROFESSIONALS
Anytime that a pre-existing health condition is present, life insurance underwriters are going to request that they get an attending physician’s statement, which is also known as an APS. This is a statement from your doctor to consult the notes in your file. Underwriters might also request additional information from any other medical professionals that you have met with concerning your medical condition.