If you’re shopping for life insurance with a pre-existing condition, it’s important to be prepared to handle certain challenges since life insurance approval and rates are typically contingent upon passing a medical exam. Life insurance companies define pre-existing conditions as any health condition that an individual has been diagnosed with or received treatment for before applying for a new life insurance policy. These conditions include diabetes, lupus, cancer, and a variety of other medical and chronic illnesses.
While it’s possible to obtain life insurance if you have a pre-existing condition, the availability of coverage and the cost of premiums can be influenced by the specific condition, its severity, and how well the condition is managed. In this article, we’ll discuss how pre-existing conditions affect life insurance and the types of policies available to you if you’re living with one so you can find the coverage you need.
Life Insurance Considerations for People with Pre-Existing Conditions
Pre-existing conditions are an important factor in the underwriting process, during which the insurance company assesses the condition's impact on your overall health to determine your risk level. This means that the presence of a pre-existing condition can affect the cost of life insurance. Individuals with certain pre-existing conditions may also be charged higher premiums to reflect the increased risk they pose to the insurance company.
However, demonstrating adequate treatment and management of your condition may help you get more favorable premiums. For example, if you have high blood pressure that you’re managing with lifestyle improvements and/or medication, an underwriter will likely view you as less of a risk than if your condition was untreated. The management of your high blood pressure could lead to lower life insurance rates than if your high blood pressure was unmanaged.
What type of life insurance is best for people with pre-existing conditions?
As you shop for a life insurance policy with a pre-existing condition, you’ll want to consider the two primary types of coverage: term and permanent life insurance. Term life insurance is a type of life insurance that provides coverage for a specific period, typically ranging from 10 to 30 years. If the policyholder passes away during the term of the policy, the insurance company pays out a death benefit to the beneficiaries. The other main type of life insurance is permanent life insurance, which is a type of policy that provides coverage for the entire lifetime of the insured as long as the premiums are paid. Unlike term life insurance, which offers coverage for a specific period, permanent life insurance remains in force until the policyholder’s death.
Pre-existing conditions are just one of many factors affecting your life insurance application, including age, gender, occupation, hobbies, and lifestyle. However, certain pre-existing conditions may make it harder to qualify for traditional term or permanent life insurance and/or may result in higher premiums. If this is the case for you, consider exploring final expense insurance. There are several benefits to this type of coverage, including that it’s budget-friendly compared to other life insurance policies, it doesn’t require a medical exam, and it generally ensures approval to those ages 45-85.
Here’s a closer look at the three types of final expense coverage:
Simplified Issue Life Insurance: Simplified issue life insurance offers a faster application process than traditional term or permanent life insurance. While coverage isn’t guaranteed, it’s based on a simple health questionnaire rather than an in-person medical exam.
Guaranteed Issue Life Insurance: Guaranteed issue life insurance offers guaranteed approval if you’re between the ages of 45-85. It doesn’t require a medical exam or for you to supply medical records.
Critical Illness Life Insurance: Critical illness life insurance can provide coverage despite future serious health issues such as cancer, heart attack, or stroke. It requires no medical exam and provides lifetime coverage, regardless of future diagnoses.
It’s important to remember that different carriers may have different approaches to different conditions, so it's best to shop around by working with an unbiased brokerage like SelectQuote.
Shopping for life insurance with a pre-existing condition? Let SelectQuote help.
Shopping for life insurance with a pre-existing may seem complicated, but we can make it easy. We can help you find affordable coverage in just minutes, taking the guesswork out of your hands by gathering unbiased quotes from trusted carriers across the country. Our licensed insurance agents work on your behalf, not the insurance companies, so you can feel confident knowing you’re getting the right coverage for your needs and budget.
