It’s not a secret the healthier and / or the younger you are, the less you’re going to pay for life insurance. Insurance companies usually categorize buyers into one of several classes based on the risk they represent, and health is a big factor in this equation. That’s the reason why youngest shoppers receive preferential rates, because they’re presumably healthier. Even if you’re not in your twenties anymore, you should be able to get standard life insurance premiums as long as you’re reasonably healthy, but if you’re dealing with serious health issues, you can expect to only qualify for much worse rates, or even to be denied altogether. That being said, if you have a chronic condition, you shouldn’t assume you’ll automatically be turned down if you apply for life insurance. Even if you are declined by a given life insurance company, you have other options.
Life Insurance Companies Can Be Flexible
First of all, you need to realize that life insurance companies all have their own underwriting standards. That means that some of them take a gentler look on certain conditions and diseases than their peers. Generally speaking, you will raise some red flags if you have diabetes, heart disease, obesity, high cholesterol or high blood pressure, depression or another chronic condition of this nature. Cancer and other health issues can lead to higher premiums — or even to you getting denied by a life insurance company.
The timing of your application is also a factor. A life insurance company is more likely to turn you down if you apply days or weeks after a devastating diagnosis. On the other hand, if you’ve been dealing with your condition for a certain period of time and your medical records show that your treatment is working, you may be able to get an approval, even if it means paying a bit more than a healthy person.
The Right Company Makes All the Difference
It goes without saying, but the first step to get affordable life insurance despite having a chronic disease or a pre-existing condition is to manage your health as well as you can. Take your medication, exercise and eat right. All other things being equal, a healthy lifestyle translates into lower premiums. Plus, you should take a look online to find the most understanding company, preferably one that offers an assurance vie sans examen médical. Online life insurance companies are known for their flexibility and their high rate of acceptance.
There Is Always A Plan B
If you can’t get individual life insurance despite all that, don’t despair just yet : you still have other options. A lot of people — and that includes individuals with serious health issues — can buy group life insurance through their employers. The coverage provided by this type of plan is usually limited to 1 or 2 times your annual salary, so it may not be an ideal option; that being said, you will not be forced to take a health exam to buy into it, which is a major plus. Of course, this option forces you to stay with the same employer for most of your career, or to make sure that a prospective employer offers similar benefits before jumping the ship.
You can also turn to guaranteed issue policy, which will typically cover you as long as you don’t have AIDS, aren’t terminally ill or living in a nursing home. Keep in mind that it’s one of the most expensive ways to get life insurance, so it should be your last resort.
Finally, let’s say that you can’t get any type coverage using all the tricks we’ve just listed. You still have the option to self-insure, which means investing the money you would have otherwise paid in premiums using conventional savings options through your financial institution. Again, it’s not ideal, but it’s a lot better than doing nothing or to try to hide your health issues from your insurer. More often than not, it would mean throwing your money down the drain since most insurers won’t pay an individual that misrepresented his or herself on the initial application.
Medical issues do affect life insurance’s premiums — or even your ability to get life insurance in the first place — but where there is a will, there is a way: chances are your situation isn’t half as bad as you think it is.
