Medical Conditions That Reduce or Eliminate Your Life Insurance Options

 

There are a number of medical conditions that can reduce or eliminate your life insurance options. However, even if you get declined because of medical conditions or you are a smoker, there are always options available and we will show you what they are.

Let’s begin with term life insurance

Term Life Insurance Requires Excellent Health

Term Life Insurance Requires Excellent HealthTerm life insurance is a type of coverage that has an end date. The length of time that it is effect is determined between you and the insurance company and if you are still alive after the date the coverage ends, you can extend the coverage at a much higher premium.

While term life insurance Prescott provides a higher pay-out upon death than other types of life insurance for a much better price, there is a strong possibility you will live past the expiration date and lose all the money you paid in over the years.

Because they are basically counting on you living past the end date of the policy, it is important for the life insurance companies to make sure you are in great physical shape at the start of the contract. They are going to sharply focus on health conditions to ensure you stand a better chance of outliving the policy than you would if you were dealing with a serious medical condition.

Term life insurance companies limit the amount of prescriptions you are allowed to be on to three. Any serious health conditions like heart problems, strokes, cancer, diabetes with neuropathy, high cholesterol and smoking will lead to an immediate decline. Even less serious conditions are subject to rejection.

Also, your age is an important factor. The younger you are, the better chance you have of approval. Term life insurance policies range from ten to thirty years of coverage. Term life insurance is best for the young and healthy.

So again, three or less prescription medicines. most medicines are going to be okay. However, there are, there’s a long list of, of prescription medicines that would be a decline now for the medical diagnoses.

High  cholesterol, as long as you are not taking more than two prescription could be acceptable. if you are taking no more than two pills for condition could be acceptable but not if you are injecting insulin.

Whole Life Insurance is More Lenient for Medical Conditions

Whole life insurance costs more because companies offering this type of life insurance coverage are more lenient inWhole Life Insurance is More Lenient insuring those who are dealing with more serious medical conditions.

Whole life insurance will cover individuals who are in perfect health and those who are moderately healthy as well.

In some cases you  one can get a whole life policy approval for more severe conditions but not many of those will be approved.

With whole life insurance  any number of prescription medicines is fine. There’s no elimination based on a cumulative quantity. also some of the instant declines. here are some conditions that would give you an

There are some medical conditions that will trigger an instant decline, such as certain prescription medicines, anything that even insinuates Alzheimer’s or dementia, other memory issue, memory boosting prescription medicines. Also congestive heart failure or if you need to breath oxygen during the day can lead to a decline.

You can also be declined if you are confined to a wheelchair or if you use a scooter, although there’s some gray area there and there are some companies that will approve for scooters but decline for wheelchairs. Also, if you have or you’ve had diabetes with neuropathy and any kind of amputation, that’s a decline.

An active cancer within the last two years, reoccurring cancer of the same type will lead to  an automatic decline regardless of when it occurred, even if it was 20 years ago.

Squamous cancer is an exception. Basil cancer  is fine. Those are considered by most life insurance companies to be extremely minor, in and out, and they don’t worry about that.

However, melanoma is more serious. So ask your agent about that.

Also, organ transplants tend to be an automatic decline,

If you are not a U.S. citizen most of these companies will decline that as well.

You can ask your agent if there’s some kind of work around for that, if there’s some way to still get you insured. But in most cases, you do have to be a United States citizen, in order to get approved for life insurance coverage.

Lenient Life Insurance Companies

Lenient Life Insurance CompaniesOne of the most lenient, A-rated whole life insurance companies we work with is Royal Neighbors of America. They’re one of the largest women led life insurers in the United States. They treat clients exceptionally well. They’re very fast growing. Their clients tend to be very happy with them.

Another phenomenal company is Forester’s Financial. Their rating is through the roof. They  very lenient, as far as their underwriting goes. They have an A-plus rating with Better Business Bureau.

America Life insurance has been in business for over a hundred years. They’re an A-rated company. They’re phenomenal.

Not only do they offer very lenient and reasonable whole life insurance policies but one of their policies will actually help out smokers who are quitting, to get a nonsmoker rate even if they are still smoking.

It’s a really phenomenal thing. So if this is you give us a call because it can save you 20 to 40% I’ve even seen it save 50% on your life insurance cost if you’re a smoker and get that non-smoker rate. It’s a huge incentive program because they give you three years to quit and start you with a non-smoker rate today regardless of what’s going on.

Graded Whole Life Insurance Policies and Medical Conditions

If you’re between the ages of 50 and 80 then you’ve got major health problems, you got a safety net that can guarantee you coverage called a Graded Whole Life Insurance.

This type of policy is basically whole life insurance that is graded upon your level of health. If you have angina, kidney disease, a semi-recent heart surgery, quadruple bypass, Multiple Sclerosis, Parkinson’s Disease, even if you had a stroke yesterday, there is a graded whole life insurance policy waiting for you. The catch is you will pay a lot more for coverage depends on how many illnesses you suffer from and you current state of health.

According to Financial Web, Graded benefit whole life insurance, also known as GBL insurance, is a specialty type of whole life insurance that is usually offered as life insurance policy for people that might have a hard time getting other types of life insurance. The policy usually pays out limited death benefits during the first few years, and usually requires premiums that are somewhat higher than standard life insurance policies.

The First Few Years

Many insurance companies offer limited benefits during the first and second years. Most policies will only pay the premium amounts collected plus interest which ranges between 5% and 20%, depending on the insurer. Most graded benefit policies reach the face level amount for the death benefit between 3 and 7 years. Only after the policy has “matured” will the death benefit be the amount of the face value of the policy. These policies continue to accrue some amount of cash value the entire length of time that premium payments are made. However, cash benefits will usually not equal a matured policy death benefit until the insured has reached age 100 or more.

May Be the Only Option for Some People

Because these types of policies often don’t require medical exams are even a medical questionnaire, they may be the only life insurance coverage option available to some people. These types of policies are best suited to people that will probably live more than 2 years but are at risk of passing away within the next 5 to 10 years.

Guaranteed Issue Life insurance is the Most Lenient of All

Guaranteed Issue Life insurance is the Most Lenient of All

According to Financial Web, guaranteed issue life insurance is literally guaranteed to be provided once the premium is paid, without regard to your medical history or current state of health. In fact, true guaranteed life does not require you to undergo a medical examination nor requires a medical history to be completed.

The premiums tend to be much higher, and there are protective clauses that allow the insurer to refund the premium rather than pay out the death benefit if you die within a certain period of time after obtaining the policy. While you may think that your health leaves you with no option, it is worth comparing the price of a guaranteed issue policy against the cost of other types of life insurance. Guaranteed issue life insurance will cover you regardless of how serious your medical conditions are.

The only downside of this is you must stay alive through the first two years of having this type of coverage in place to be able to collect your full payout.

If death occurs within the first two years your pay out is much less.

A good company to work with that offers this type of insurance is Gerber Life Insurance. They even cover children. If you’re looking for a guaranteed product, their price is incredible. The program is amazing.

If you are between 50 and 80 years old Gerber will write you a life insurance policy. All they want to know is your gender and age and you can get a guaranteed issue life insurance policy. Once you get past the two year, it’s 100% whole life coverage until you die as long as you make your premiums.

We hope hope this has been helpful. Click below to speak with one of our agents or set up an interview.

 

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Chad McMahan

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