Life Insurance Policies for People With Pre-existing Conditions
Key Takeaways
- Most U.S. adults have at least one chronic condition, which can make it harder to qualify for life insurance.
- Many policies require medical underwriting, which includes a physical exam, to be eligible for enrollment.
- It may be challenging to qualify for a term or whole life insurance policy if you have a chronic condition.
- Simplified issue policies, which require answering questions but no exam, could be an option for some individuals with chronic illnesses.
- The easiest life insurance policies for people with pre-existing conditions to enroll in are guaranteed issue policies, which require no medical exams or health questions.
You know that life insurance protects your loved ones from financial challenges after your passing. However, you should also be aware that, if you’re living with a chronic health condition, you might have a harder time qualifying for certain kinds of coverage.
There are life insurance policies for those living with pre-existing conditions. To find the right one for you, understand how the premium costs and death benefits for these policies may be different from other types of coverage. By weighing these considerations and selecting the insurance that best fits your needs, you can feel confident that your family will have greater financial security in the years ahead.
Secure your family’s future with Guaranteed Acceptance Life Insurance.
Contact GoHealth to find coverage that fits your needs.
Chronic Health Conditions and Life Insurance
According to the Centers for Disease Control and Prevention, about 60% of U.S. adults live with at least one chronic condition, and your chances of developing these health problems increase as you age.
Among older people, some of the most common chronic illnesses include:
- High blood pressure
- High cholesterol
- Obesity
- Diabetes
- Arthritis
- Heart disease
- Kidney disease
Any of these conditions can contribute to an earlier death, so they might make it more difficult to sign up for life insurance. Insurance carriers usually minimize their risk with a process called underwriting, which determines your eligibility for a policy as well as the premiums you would pay. Underwriting may factor in your age, gender, occupation, family history, and financial situation, as well as any health conditions.
Lifestyle choices can impact the progression of your condition and your insurability. During underwriting, you might be asked questions like whether you follow an exercise routine, eat a healthy diet, or use tobacco.
Applying for Term or Whole Life Insurance with a Medical Condition
Two of the most common kinds of life insurance are term and whole life policies:
- Term life insurance: This covers you for a specific period of time, typically between 10 and 30 years. It can be especially useful when you want added protection, such as while you’re paying off a mortgage or for a child’s education.
- Whole life insurance: This is permanent coverage that lasts as long as you pay your premiums. A whole life policy comes with a cash value account that earns interest with taxes deferred. You may be able to borrow against that cash value, withdraw funds, or use it to pay your premiums.
Both these types of insurance can offer substantial death benefits that replace your income to support loved ones after your passing. However, you will likely need to go through medical underwriting to qualify for a policy.
The underwriting process often involves a medical exam and answering questions about your health and lifestyle. As you grow older or develop medical issues, it becomes harder to qualify, and premiums are likely to become more expensive.
If possible, enroll in a life insurance policy when you’re relatively young and healthy to receive the lowest premiums. Some policies even offer riders for chronic or terminal illnesses so that you can access a portion of the death benefit to help with your expenses after a serious medical diagnosis.
People who already have health problems may still be able to join a term or standard whole life policy. You can improve your application’s chances by carefully following a treatment plan and making lifestyle changes like dieting and getting regular exercise.
If you’re denied coverage and think the decision was made because of an error or insufficient medical information, you can appeal. You also have the option to apply again when your medical situation improves. When you’re considering reapplying, first gather documentation that shows at least several months of following a treatment plan and maintaining a healthy lifestyle.
Secure your family’s future with Guaranteed Acceptance Life Insurance.
Contact GoHealth to find coverage that fits your needs.
Enrolling in Simplified Issue or Guaranteed Acceptance Life Insurance with Pre-existing Conditions
Other life insurance options aside from traditional whole life or term life policies can be more accessible for people with chronic health conditions. Based on your individual situation, either a simplified issue or a guaranteed acceptance life insurance policy might be the best choice for you:
- Simplified issue life insurance: This type of policy does not require a medical exam, but you do need to answer questions about your health and lifestyle. Many people who are older or have pre-existing conditions are able to qualify for a simplified issue policy, but premiums tend to be higher and the death benefits lower than for a whole or term life.
- Guaranteed acceptance life insurance: Guaranteed acceptance life insurance doesn’t involve any medical underwriting. There’s no exam or health questions. Most people between the ages of 50 and 80 can qualify for a policy regardless of their medical condition. However, the death benefits are generally much lower than other kinds of life insurance and may not pay out in full for the first two or three years after the policy becomes active. This option might be right for you if you’re older or have health problems and want to make sure your family will have funds to manage funeral arrangements, medical costs, and other final expenses.
Living with one or more chronic illnesses will likely limit your life insurance options. Nonetheless, finding the best coverage to fit your current health and financial situation could make a difference in your family’s ability to manage final expenses and other costs. Protect your family’s future by learning more about your eligibility.