Life Insurance 101
There are numerous common medical issues that impact life insurance options. Term life insurance and whole life insurance are affected in different ways and eligibility for coverage varies for each type of policy. Your health is one of several factors taken into consideration when you apply for life insurance.
Even though it can play a significant role in the rate you pay for a policy, it’s unlikely that you’ll be disqualified as a result of a pre-existing medical condition. There are numerous life insurance policy choices available for you to consider when looking for life insurance coverage that will accept even serious medical conditions.
We at Protect With Insurance can provide you with these choices and ensure that you get the best life insurance coverage and rates possible and within your budget.
Our job is to find you the top a-rated life insurance companies Prescott Az out there that offer the kid of life insurance coverage that best fits the needs of you and your family.
Whether it’s term life insurance, whole life insurance, return of premium life insurance, accidental death insurance, whole life insurance with living benefits or burial insurance we are here to guide you and help you through the entire process.
Common Medical Issues Impacting Term Life Insurance
According to Financial Web, term life insurance is designed to provide protection for a limited period of time, which is the term of the policy. However, if the insured does not die during the term that the policy is in force, the face value nor premium are refunded.
Term insurance, therefore, provides death protection only; it offers no living benefits such as the guaranteed cash value of whole life insurance. Term insurance is used to provide economical coverage at times in the life of the owner when it may be more advantageous to have additional coverage.
Some term policies are renewable, which means that the policy can be renewed at the end of the term for a similar period without the insured having to show evidence of insurability. Evidence of insurability generally consists of a medical exam or doctor’s statement regarding the insured’s satisfactory health status (in other words, no physical examination is required).
The premium of the renewal is based on the insured’s age at the time of the renewal. Term policies may also be convertible; convertibility allows the policy owner to convert the temporary protection of a term policy to permanent protection (usually in the form of whole life insurance) without evidence of insurability.
Term life insurance is heavily impacted by medical conditions and there are numerous medical issues that can get you declined.
In that term life insurance is basically a gamble between you and your insurance company, the carrier is betting you will not die before the term ends and they will not have to pay anything out.
You are betting you will expire before the expiration date and the insurance money will be paid to your family upon your death.
One can understand why the companies want to make sure you are in excellent physical shape before they issue a term policy.
They are very strict about this. You cannot be on more than three prescription medications and it depends on what kind and for what reason.
There is one common exception for term life insurance and that is if you suffer from diabetes. If you’re only using pill form medication, meaning no injections or shots, then usually you can qualify.
If you have a moderate or low blood pressure issues or if you have low, just minimal cholesterol issues, you can most likely still qualify for term life insurance. Other than that, you must be in pristine health.
Common Medical Issues Impacting Whole Life Insurance, Burial Insurance or Final Expense
Those type policies are more lenient and more flexible in terms of acceptable-medical conditions. Unlike term life insurance you don’t have to be in perfect health to qualify but there are a number of serious medical conditions listed below that will affect your chances of qualifying for whole life insurance:
• Cancer within the last two years
• Congestive Heart Failure
• Chron’s Disease
• Severe heart issues or complications
• Heart surgery within the last two years
• Neuropathy associated with Diabetes
Other issues to consider are if you’ve had a felony or DUI charged against you in the last one to two years. Sometimes that can impact your policy. It’s not medically related but it’s something to be aware of.
There are additional restrictions for whole life insurance. For example, if you’re looking at a maximum insurance coverage of $25,000 to $30,000 and suffer from depression and anxiety you’re probably going to be accepted. However severe depression, severe anxiety, bipolar and schizophrenia may affect eligibility.
Concerning these aforementioned medical conditions, make sure you alert your agent if you have any of them so that they can find you the best possible match. This information needs to be in your application. The worst thing that could happen is you get approved but you didn’t share something and your life insurance company finds out. This can affect your end-of-life payment and your beneficiaries will lose out. Make sure that you’re upfront about all of these things so you can get the best possible outcome.
There are additional-medical conditions than can impact your whole life policy.
If you have a pacemaker the insurance company will look at how long since it was installed. They prefer that it has been at least two years ago for most carriers. Some of them look out to a year and still accept you. It just depends upon your other health issues as well.
If you are using a wheelchair or if you’re using some kind of an electric scooter, tell your agent right away because that’s going to drastically impact your options.
Also, if you need oxygen. Using a breathing machine like C-PAP when sleeping is acceptable. However, if you need to use an oxygen tank or breathing machine during the day because you are suffering from COPD or severe breathing problems you must tell your agent right up front because that’s going to eliminate 99% of you options and allows your agent to focus on that 1% to get you the best possible option at the lowest price.
You must also tell your agent if you’ve had a stroke within the last one to two years. That can be an issue as well.
Not all of the medical issues listed above mean an automatic decline but they certainly can lead to one as some of these are much more severe than others to the insurance companies.
The Guaranteed Issue Life Insurance Policy Option
According to Financial Web, guaranteed issue health insurance is a type of plan provided for individuals who are disqualified in obtaining the traditional health insurance because of having chronic or life threatening illnesses. Through this special health policy, people with heart diseases, AIDS/HIV, cancer, hepatitis C virus, hypertension, and other related ailments are able to get financial support from their respective insurers.
Since the guaranteed issue health insurance is an extensive kind of health policy, it can cover a large group of medical related expenses such as:
- every visit to the physician
- drug prescriptions
- medical treatment and procedures such as biopsy, chemotherapy, surgery
- in-patient and out-patient care
- laboratory examinations like blood tests and X-rays
- emergency room care
Insurance companies offer various list of coverage depending on the type of plan purchased. The cost of insurance varies from one insurer to another. Some providers based the amount on the premium or deductible chosen by the policyholder.
If you are between the ages of 50 and 80 and you have severe medical conditions that will get you an automatic decline for all the carriers, your best bet is to go with a guaranteed issue life insurance policy.
The only catch is that if your death occurs within two years of starting that policy, it would be a drastically reduced pay out to your beneficiaries.
However, if you live past those two initial years and die anytime after, it’s a 100% pay-out to your beneficiaries as long as you kept making your premium payments up until that point.
This is a great policy and a great solution for people that don’t quite qualify for the life insurance that they want, because of health issues.
It’s still structured as a whole life insurance with all of the benefits. It’s more expensive and assuming it is within your budget, we highly recommend going that route.
We hope that this has been helpful. Please reach out and call us for a proper risk assessment.
If you have concerns about your health share your concerns. Talk with one of our agents about your health so that we can run it through and see what your options are. You can get some, some idea of cost and what you should get approved for. and just start with that.
Call 928-323-0933 or email at hello@ProtectWithInsurance.com. Click on the links below to contact us or get a free quote. We know your time is valuable and we can get you a quote within minutes.