Having an existing condition does not mean that life insurance is out of reach. Alternatively, you will automatically face Sky High Rate. In fact, many people with manageable conditions such as high blood pressure and high cholesterol may be subject to affordable coverage depending on the condition management and the underwriting approach of the insurance company. While certain health issues can make the process more complicated, there is still plenty of path to getting life insurance. Knowing how your insurance company assesses risks and which options are available can make a huge difference when it comes to finding a policy that suits your needs and budget.
What is an existing state?
An existing condition is a health issue that was diagnosed or treated prior to applying for life insurance. This can include a wide range of medical conditions. Some are more serious, others are rather routine. Life insurance companies can take these into consideration during the underwriting process. This will help you assess your overall risk profile and determine your premium.
Having an existing condition does not automatically mean higher rates or limited options, but it can affect the way insurers evaluate their applications. The effects often depend on how well the condition is being managed and overall health.
A typical example of an existing condition is:
This is not a complete list, and each insurance company may define existing terms in a slightly different way. Generally, if you receive a diagnosis, treatment, or medical advice for a past condition, it may be considered pre-diagnosis. That said, not all conditions have the same weight. Many insurers take a nuanced approach when determining how health issues affect coverage options.
Will existing conditions affect my life insurance premiums?
While you can usually get life insurance under existing conditions, it can affect premium and coverage options. Insurers use a tiered system to determine the risks that cover you. In general, policyholders fall into the following categories:
- Super priority (or priority plus)
- preferable
- Standard Plus
- standard
- Substandard
Applicants with complications from existing conditions or multiple conditions are usually placed in low-rise classifications and even refusal to higher premiums or coverage. To determine the level of risk, the insurer evaluates each case based on the following criteria:
- Severity of the condition: Existing medical conditions that significantly increase your risk of death almost always result in higher life insurance premiums.
- Is the question latest? A medical condition that causes serious and ongoing health problems may put you in a higher risk category.
- Diagnosis date: If you have lived with a diagnosis for a long time, you can show your insurance company that your condition will deteriorate during your policy.
- How to manage your state: Existing medical conditions that show signs of improvement and respond well to treatment may result in lower risk classification. Over time, taking prescription medications or if your prescription is stable, it can be a positive sign for your insurance company.
- Your Lifestyle: Habits like smoking can put you in a higher risk class. This means that life insurance costs may increase.
To further understand and determine the risks of your life insurance, your insurance company can ask your physician to attend physician statements (APS). APS may include diagnosis, prescribed medication, and treatment. In some cases, insurance companies may ask you to complete a health check, usually including blood tests, urine samples, and basic vitals. The results of the APS and health checks can help us decide whether to approve or reject your application, and which rate to pay.
What kind of life insurance can I take out in my existing condition?
While life insurance companies can claim higher premiums based on existing terms or deny coverage based on existing terms, there may still be insurance available to high-risk life insurance candidates. Below are just a few of the potential solutions available to those searching for life insurance under existing criteria.
Guaranteed Issued Life Insurance
Best: People with serious health conditions
Guaranteed issues life insurance skips health checks and does not ask health questions. Even if your condition usually leads to negativity, it will be accessible. trade off? The compensation is low, often capping around $25,000, but premiums are higher than profits. Most policies also offer gradual death benefits for the first few years. This means that you will not receive full death benefits for a set period, typically for a couple of years, until the policy is in effect.
Period life insurance
Best: Affordable coverage for the set period
Term life insurance typically offers fixed period coverage of 10, 20 or 30 years, and tends to be the most budget-friendly option. If your condition is properly managed, you may still be higher than someone in perfect health, but you may still be eligible. Approval depends on the severity of your condition and the insurance company’s underwriting guidelines.
Permanent life insurance
Best: Lifetime protection with additional benefits
Permanent life insurance, such as whole life and universal life, typically provides lifetime coverage ranging from 95 to 121 coverage ranges. These policies also include cash value components that usually grow over time. Permanent policies are more expensive than semester life, but if you want long-term financial protections and can afford higher premiums, they may be appropriate. Approval of existing terms remains subject to medical underwriting.
Group Life Insurance
Best: Employer-based coverage
If your employer offers life insurance as part of your benefits package, you may be able to register for group coverage with a health screening. Group policies often provide a basic level of protection (usually 1-2 times the salary). Some people can purchase additional compensation that may require underwriting.
Tips for purchasing life insurance in your existing condition
Insurance companies don’t all assess risk the same way. This means you can get very different offers depending on where you apply. Below are some smart strategies that will help you find the right policy at the best price.
1. Shop and compare offers
One of the most important things you can do is compare quotes from multiple insurance companies. All life insurance companies have their own underwriting standards, and what one insurer sees as high risk may be more positive, especially if your condition is stable or well-managed.
For example, a Reddit user working in the insurance industry said, “A client I wrote about taking medications for anxiety and depression is seeing an increase in premiums. But they also said, “Adding (another condition) could increase it even more.” Is it an important point? Prices can vary widely, and even with multiple conditions, pricing can be easier to manage than you think of based on your insurance company.
2. Apply coverage as soon as you need it
Life insurance tends to become more expensive with age, and certain conditions can progress over time. For example, if you need reporting after buying a house, getting married, or having children, it’s wise to apply earlier than later. By locking rates while you’re younger and your health is more stable, you can help you avoid higher premiums.
3. Be honest with your application
While it may be appealing to rule out a diagnosis or underestimate your health history, sincerity is extremely important when applying for compensation. Inaccuracy can lead to coverage that was later denied or even cancelled policies, as insurance companies will review your medical records and prescription history. Being ahead will help ensure a smoother underwriting process and protect your loved one from future complications.
4. Consider working with an independent agent or broker
Independent life insurance agents or brokers are especially useful if you have a medical history. These experts work with multiple insurance companies to guide you towards businesses that are more generous or experienced in underwriting certain terms. It also helps you navigate application requirements, such as a health check or a doctor’s statement.
What should I do if I am denied life insurance coverage?
Individuals may have life-threatening or untreated preexisting conditions that are far more risky than others. If you are denied compensation from multiple carriers, the best way to move forward and find the right plan is to seek the help of an independent broker. These experts have access to many different insurance companies and their experience may have knowledge of tips that will help you find coverage.
Alternatively, you may be able to resubmit your compensation application after waiting for the specified amount of time. Some insurers will consider you if you have previously been denied for coverage and you can explain an improvement in your condition. For example, if you have hepatitis C and your compensation is denied, you may be able to resubmit your application for compensation once treatment improves your condition. You may also consider a guaranteed acceptance life insurance, as your medical history does not exclude guaranteed coverage.
