Curious if you are able to get life insurance with a pre-existing condition? This is a common question and one I’ve gotten many times. There are options available.
Ask yourself: Can I get life insurance with a pre-existing condition?
Life insurance options for pre-existing conditions vary by company in that each life insurance company specializes in a different risk group. One company may completely deny an application with a specific condition listed while another won’t bat an eye, and yet another one may require a more thorough medical exam or a slight increase in premiums. Pre-existing conditions generally do not outright mean you can’t get any life insurance, more so it means it’s in your best interest to look around for a company that best suits you individually.
What is a pre-existing condition?
A pre-existing condition is something you got treated for or diagnosed with by a doctor prior to applying for life insurance. As stated earlier, every insurer has its own risk categories that it handles. Here are some of the more risky conditions that you will want to look at multiple companies for:
- Cancer
- Depression
- Epilepsy
- High Blood Pressure
- Asthma
- Obesity
- Diabetes
- HIV/AIDS
- Heart Disease
How do health conditions affect life insurance?
Risk categories are called rate classes and are based on many factors, health being one of them. Each rate class has a name and they slightly vary from each carrier to the next, though they are fairly similar. The goal of these is to categorize you according to your health and the rate classes are something like: standard, preferred, and substandard.
Most people fall into the standard category for one reason or another. Most COULD qualify for preferred but it would require slight improvements to one aspect of their health (weight/height ratio, conditions, prescriptions, etc). Due to health management improvements, outcomes are improved for individuals which leads to better rates. Managing your conditions can help you score higher and sometimes even get preferred premium rates.
What to expect from the life insurance application process
When applying for permanent or term insurance the process is the same initially. The application gathers information about the applicant which includes health, age, height, weight, etc. The information creates a general risk factor which the carrier then uses for their underwriting process. If the application is for a simplified issue or guaranteed issue then the underwriting process is much shorter, maybe a week at most. If applying for large death benefit life insurance then it will take a couple of weeks to a couple of months.
There is another step that many do prior to the application and that is getting a quote. That being said, many applications have a quote tool included in the application. This makes it convenient for individuals to either get a quote prior to picking a specific company or for those to pick a company first and then do the application and get a quote at the same time.
Certain documents are needed when doing an application to verify the identity of the individual and the information given. Get the following documents ready to help your application process faster:
Drivers license, birth certificate or other proof of identity, passport
Income verification like pay stubs or tax returns
Proof of residency such as lease, utility bill, or property tax statement
Completing the application
You can either complete a paper application or do an electronic application, also called an Eapp. Eapp’s are a good time saver as neither you nor the agent needs to take time driving to meet each other for appointments. The application may ask where you got your quote and how much it was for. It will also ask for normal personal information like age, weight, sex, height, hobbies, and occupation. You’ll be asked for permission from the insurance carrier to access financial and medical records to verify your statements. A follow-up phone call from the insurance carrier may occur to check if the details are correct and to get any follow-up information the carrier deems needed.
After the application
Most people will need to have a medical exam done after an application. Usually, after you submit an application an agent will schedule the exam with a paramedical examiner who will meet you at your home or office of your choosing. Exams are quite quick, usually about 30 minutes, though they typically are scheduled a couple of weeks from the application date. During the exam, the examiner verifies the information on the application like height, weight, and blood pressure, and they do a blood draw, possibly even a urine test.
After gathering the blood draw and urine test, the insurance company will use the examiner’s info plus all that was gathered previously to evaluate your risk factors and assign a rate class which is used to calculate your premiums.
The last stage of all application processes is to make your first premium payment which puts the policy in force.
Factors to increase insurability for those with pre-existing conditions
Just because you have a pre-existing condition doesn’t mean you can’t get life insurance. There are things you can do to possibly increase the chances you’ll qualify even with a pre-existing condition. Sometimes these things can even help you to lower your premiums.
Lose weight
While it is hard to do, weight is one of the first things used to determine rate classifications. Lowering your height and weight ratio by losing weight is a great way of improving your chances of qualifying. Aside from the benefits, it gives to your chances of getting life insurance it will help in so many other areas of your life it’s really worth thinking about.
Medical treatment plan
While a pre-existing condition may affect your premium rates, if you have a treatment plan it may be the difference between qualifying or not. Go to a doctor and ask for a treatment plan then follow it the best you can. When applying for life insurance you can submit that with it to potentially help your rate class.
Buying life insurance with a pre-existing condition
Some conditions have a waiting period depending on the company you apply with however you can always reapply. An example is that during the pandemic, many companies required you to be free of covid for 3-6 months before they would accept you. Another is if you apply shortly after a cancer diagnosis you may be denied, though again you can reapply. If your treatment plan shows that your health is in good order that can especially help your application process.
Improvements in your health condition can help you get a better rate. If you are approved and then improve your health status you can ask for another medical exam which the carrier can take into account and it may help your rate class.
Doing the things you can to improve your chances is crucial for getting the best rates possible with life insurance. Knowing you should exercise is not as helpful as actually maintaining an exercise program. Keeping a healthy diet, avoiding smoking, and looking for a good agent are all things you have control over.
An independent agent can help you to look at many carriers rather than just one giving you more options when you have health conditions to consider.