Pre-existing medical conditions make it more difficult and expensive to qualify for a life insurance policy but there is still some possibility. If you have some chronic or extreme health problem, you may likely get a policy if you shop around and look for several options.
Depending on your specific medical problems, some policy types allow you to qualify if your condition still gets managed. However, having such a condition will not prevent you from qualifying for burial life insurance. Such policies are built to accept seniors and old people with high-risk health issues.
In this blog, we will explore how your health conditions impact your policy options and how to get the best policy according to your condition.
How does a final insurance policy work and what are the available options with it?
Final expense life insurance is a kind of small whole-life policy that comes with relaxed underwriting, so people with severe health issues can qualify. Typically, life insurance companies allow people to get from $2,000 to $4,000 in coverage.
However, the final insurance policy comes with two basic options that you can avail of. Some have health questions while others do not, but there is a big difference between both options.
1- Plan with Health Questions and Instant Coverage
Plans that have health questions are called simplified issues because you do not have to go through an exam while pursuing it. You only have to answer some health questions. Along with it, the insurance company will also analyze your medical history.
If you are approved for the policy, it has no waiting period. Immediately effective life insurance means you get coverage for natural or accidental death once you pay your first premium. Therefore, if you die even one day after getting a policy, insurers are bound to pay the death benefit.
But if there is a waiting period, there would be a refund of paid premiums for death during the first two years. In addition to immediate coverage, this plan is also the least expensive.
2- Plans with no Health Questions and Guaranteed Approval
These plans are simply referred to as guaranteed acceptance life insurance that comes with no health questions or any medical checkups. It means, you are guaranteed to be accepted and the insurer knows nothing about your health history.
But there is a primary drawback with this plan, that is the waiting period and its high cost. It is much more expensive as the insurance company is taking risks knowing nothing about your health and higher risk ultimately leads to higher cost.
So, it is recommended to go for a plan with health questions before getting a guaranteed acceptance plan.
Is there any guaranteed acceptance plan with no waiting period?
There is no such thing that offers you guaranteed approval and no waiting period. If the insurer offers you a policy with no health questions and covers you instantly, it will be out of business within a month. Hospice patients can make one or two payments and collect a check for tens of thousands of dollars.
What if you are denied life insurance due to health issues?
If you are denied due to health problems, do not worry, you still have options. You do not qualify for traditional life insurance but still, you have choices such as group life insurance and guaranteed issue life insurance.
Group Life Insurance
Such a plan is usually offered by employers who have a high affordable premium. If you become a part of group life insurance through your employer’s benefits, your health conditions will not be taken into account. But the death benefit will be limited and the policy is valid until you have that job.
Guaranteed Issue Life Insurance
As mentioned above, this type of life insurance does not demand any medical exam or health history. It is a recommended option for cancer patients and others with serious health issues. As no queries are asked about health conditions, it would be significantly more expensive than normal plans.
How do medical conditions affect the insurance policy’s cost?
You may have an idea that age and health are the two basic factors insurers use to check whether a person is insurable and at what cost. A younger and physically fit person lives more as compared to older, less healthy people. It’s just not common sense, but a proven fact by actuarial science. Other factors like lifestyle, gender, risky habits, and activities affect the rates and make the policy more expensive.
But the most important thing to remember is that no insurer expects every customer to be in peak health. So, different policy types are issued daily for people having health concerns. Some examples are obesity, anxiety, heart disease, HIV, high blood pressure, and cholesterol.
Many other conditions are also there that are not mentioned in the list. Therefore, it’s better to talk with a financial professional if you have concerns about your health conditions. And you will be surprised to know that your particular conditions aren’t a barrier at all.
How do insurers get to know if you have a pre-existing condition?
Life insurance companies ask about your health through the application process. Moreover, they also require you to access your medical records to validate the information. You may also go through a medical exam during your underwriting process and they will look for particular markers in your blood work and other tests that show an underlying medical condition. So never try to hide the facts from the insurer and provide them with accurate information.
Hope you got sorted out how to get final expense insurance with pre-existing conditions and which type of condition can affect your policy. If you have any further queries, it’s better to contact a professional insurance advisor to get the best solution.