Luckily many life insurance companies recognize that as well. When it comes to getting life insurance with a chronic illness there are some details the company will take in consideration in which we will get into in this article. The following are some key points from this article;
- The way carriers rate the condition varies from category assignments such as mild, moderate and severe. This is also how doctors would describe a condition to their patients.
- If you have been able to control your condition with medication, diet and lifestyle changes over a period of time this can help tremendously when applying for life insurance.
- The age you were diagnosed can also play a role in your eligibility.
- On top of the condition, there are few other things the company will look into such as your built, family history, background history and other medical conditions.
- Once the company has all the information needed to make a decision they will assign a rate class based on the level of risk. Based on the rate class you qualify for it will reflect on your monthly payments with the company.
- If you are reading this section you have obviously gotten denied for life insurance coverage and don’t worry there are other options in line for you. The first thing you need to do is work with an independent life insurance brokerage because if you go after a company that won’t work with you and you get denied again it will much harder the next time around.
- If you are over the age of 50 you are eligible for a guaranteed issue life insurance policy. This is a great policy for a chronic illness client because you will get coverage guaranteed! You will not be asked any questions and you won’t have to undergo a medical examination which is another plus.
- A final expense policy is a policy that covers your final expenses and that is all.
First of all, What is considered a chronic illness?
The first thing you need to assess when buying life insurance is whether or not your medical condition is considered a chronic illness Some of the most common chronic illnesses we have come about are:
- Type 2 Diabetes
- Heart Disease
- Cancer
- HIV
- Arthritis
- Obesity
- Cystic Fibrosis
Chronic Illness and Life Insurance
The majority of chronic illnesses can get regular life insurance plans but there are some exceptions based on the type of condition you have. Just to give you an idea we have plenty of happy clients who have diabetes, asthma, history of breast cancer, epilepsy and few other ailments that we were able to get a life insurance for at reasonable rates. However, there are some conditions like certain types of cancers and HIV that will not qualify which can only apply to a guaranteed issue plan.
What life insurance companies look at
There are a couple of things that a life insurance company takes a look at when they are assessing the proper rating and it includes, of course, the type of chronic illness followed by:
The Severity of Condition – The way carriers rate the condition varies from category assignments such as mild, moderate and severe. This is also how doctors would describe a condition to their patients. In most cases, if your illness is mild you can qualify for standard rates and substandard rates if it is moderate. The hard one to insure is severe state of illness although some people can still obtain a plan with higher premium payments.
Treatment – If you have been able to control your condition with medication, diet and lifestyle changes over a period of time this can help tremendously when applying for life insurance. Life insurance companies like to see consistency when it comes to higher risk applicants.
Age of Onset – The age you were diagnosed can also play a role in your eligibility. For example, if a person has diabetes after 50, the companies will be more lenient with the underwriting process.
Other Variables – On top of the condition there are few other things the company will look into such as your build, family history, background history and other medical conditions. Let’s say someone has asthma and smokes cigarettes, in this instance, they would be uninsurable.
What’s Next
Once the company has all the information needed to make a decision they will assign a rate class based on the level of risk. Based on the rate class you qualify for it will reflect on your monthly payments with the company. Now if for some reason you get declined you can still use the same information to apply to another company. If no company will approve you there are some options left to consider such as a graded death benefit policy or a group plan through work.
The graded benefit policy will only provide a portion of protection typically within the first 3 years after that it will provide full benefit. Most of these type of plans will have only a few questions and sometimes no questions asked approvals but are limited to smaller protection amounts. Another option is to get into a life insurance plan through your employer since it is on a guaranteed issue basis.
If you have already gotten denied…
If you are reading this section you have obviously gotten denied for life insurance coverage and don’t worry there are other options in line for you. The first thing you need to do is work with an independent life insurance brokerage because if you go after a company that won’t work with you and you get denied again it will much harder the next time around. Working with us will eliminate the wonder because we will find you some life insurance coverage. We will go over why you should work with us below but for now, let’s go over your other options. If you are over the age of 50 you are eligible for a guaranteed issue life insurance policy. This is a great policy for a chronic illness client because you will get coverage guaranteed! You will not be asked any questions and you won’t have to undergo a medical examination which is another plus.
However, with this kind of policy, you will have a cap of $25,000 but the good news is that if you are looking for a bigger coverage amount you can stack up a couple of guaranteed issue policies until it adds up to what coverage amount you are looking for. If you are not 50 or a guaranteed issue doesn’t quite fancy you don’t panic you have one more option on the table, a final expense policy. A final expense policy is a policy that covers your final expenses and that is all. This is perfect for those who simply want life insurance to cover their funeral costs and that is it. It isn’t meant to leave your family with large sums of money, but it is meant to help prevent your death from being a financial burden to those around you.
You should work with an independent life insurance brokerage because…
First of let me tell you that is absolutely crucial that you work with an independent life insurance broker that represents a broad range of insurance companies since certain companies are more aggressive with issuing policies dependent on the type of condition. Second, you want to make sure the insurance broker is specialized in working with impaired risk cases so they can use their experience to apply to the right company. You might also want to attach a cover letter to get more personal with the carrier in order to give more details of your lifestyle, health, and reasons why you need the coverage.
A reason to why you should work with us or another independent life insurance brokerage is because not all life insurance companies want to provide coverage for a client who is considered high risk and since we work with over 60 top rated companies we are aware of which company to apply with and which one we shouldn’t apply with. This is because every life insurance has their own niche, for example, if you apply with a company who specializes in sleep apnea and you have diabetes you will get rated up or worse denied because the company doesn’t specialize in diabetes they specialize in sleep apnea.
Work with us!
Everyone deserves to have life insurance coverage because your family deserves to be financially stable when you are gone. We are an independent life insurance brokerage who work with over 60 top rated companies but don’t worry we don’t work for them, we don’t push products down your throat at all. Because our loyalty is reserved for our clients and our clients only. If you are wondering the possibilities of securing a life insurance policy with your specific condition don’t hesitate to call, email or comment below so we could answer your questions. Welcome to InsureChance!
