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Qualifying for Life Insurance with Cirrhosis of the Liver
We’ll often get calls from clients or family members of clients who are looking to purchase a life insurance policy for someone who has been diagnosed with cirrhosis of the liver. And while we’re not always able to provide everyone with the answers that they’re looking for, having the ability to discuss some options that they may qualify for will often bring about a great sense of relief.
You see, the problem with being…
Diagnosed with cirrhosis of the liver is that because, it is a slowly progressive disease in which healthy liver tissue is replaced by damaged scar tissue which ultimately prevents normal, healthy liver functioning, life insurance companies in general, don’t want to assume the risk associated with these types of clients.
As a result, in general, most life insurance companies will simply deny coverage to anyone who is applying for a traditional term or whole life insurance policy once they have been diagnosed with cirrhosis of the liver.
The good news is that…
There are some types of ALTERNATIVE life insurance products, mainly guaranteed acceptance or simplified issue life insurance policies which will ask very few, if any, heath related questions or require that an applicant take a medical exam in order to qualify.
Which means that…
Even those who have been diagnosed with cirrhosis of the liver will be eligible for these types of life insurance policies. In fact, for these types of final expense and burial life insurance policies, there really are only two requirements that an applicant MUST meet in order to qualify, which are:
- First, you need to be a US citizen.
- Second, you need to meet the age requirements necessary to qualify (must currently be between the ages of 40-85 years of age. Product may not be available in your state).
And that’s it!
But before you get too excited…
It’s important to understand that while guaranteed issue life insurance policies are great for those that can only qualify for these types of life insurance policies, they do have their disadvantages as well. Disadvantages you’ll want to be aware of before purchasing a guaranteed acceptance life insurance policy.
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Three Major Disadvantages to a Guaranteed Acceptance Life Insurance Policy.
The first disadvantage that you’re going to encounter when considering a guaranteed acceptance life insurance policy is its size. In general, most guaranteed acceptance life insurance policies are going to be small, usually “maxing out” at around $25,000 dollars in coverage.
Which means that if you’re looking to provide much coverage beyond burial or final expense needs, a guaranteed acceptance life insurance policy typically isn’t going to meet all of your needs.
Now on some occasions, we’ll have folks go out a purchase several guaranteed acceptance life insurance policies from multiple insurance carriers so that when combined, the overall life insurance coverage can exceed $25,000 in coverage, but what these clients will quickly discover is that these types of policies can be very expensive particularly when one considers the actual coverage amounts being offered.
As we just pointed out, the cost of a guaranteed acceptance life insurance policy should also be considered as a “potential” disadvantage because when compared to other more traditional types of life insurance policies. In fact, guaranteed acceptance life insurance policies will generally cost much more dollar for dollar.
That being said however, if you’ve been diagnosed with cirrhosis of the liver, and you are no longer eligible for a more traditional type of life insurance, having to pay more for a policy that will actually accept you may not be such a bad deal after all.
Finally, the last disadvantage that we’ll want to discuss is the one known as a Graded Death Benefit. Within most if not all guaranteed acceptance life insurance policies, there will be a clause written into the policy that is known as a Graded Death Benefit. These “clauses” are included for the benefit of the insurance company, so it’s important to understand what they do!
Graded Death Benefit defined:
Graded Death Benefit DEFINITION: a clause in your policy that states that your guaranteed acceptance life insurance policy will not provide coverage for a death due to “natural causes” for a certain period of time once you purchase your life insurance policy.
Or in other words, you’ll need to wait a certain amount of time (typically 2-3 years), prior to your guaranteed acceptance life insurance policy providing coverage for “natural causes” of death.
Now for the purposes of our discussion here, natural causes of death are any causes of death that are caused by an ILLNESS such as cancer, heart disease, stroke, diabetes etc…
Guaranteed acceptance life insurance policies will however cover accidental causes of death immediately which would include causes such as a slip and fall, motor vehicle accident, natural disaster, etc…
Now you may be thinking…
Wait a second, this sounds like a total rip off! But again, before we get too upset, we need to remember that the insurance companies are taking a HUGE risk by not requiring applicants to answer any health related questions or take a medical exam in order to qualify for these types of life insurance policies.
You could literally apply for this policy from Hospice and the insurance company would have absolutely no idea. This is why they the created the graded death benefit which basically states that as long as you are alive 2 to 3 years (depending upon which insurance company you choose) after initially purchasing your life insurance policy, you will be covered for both accidental and natural causes of death.
It’s not all bad news because with most guaranteed accepted life insurance policies, the best final expense and burial insurance companies will generally have a policy whereby: Should the insured die from natural causes during the graded death benefit, most if not all of the paid premiums will be returned to the insured beneficiaries so it will be as though the insured didn’t actually lose money by purchasing the policy and dying too soon!
Now we know…
We’ve gone over quite a bit of information in this brief article and we certainly don’t expect you to be an expert on all of this, but what we do want you to take away from this article is that even after you’ve been diagnosed with cirrhosis of the liver, you’ll probably still have options when it comes to the types of guaranteed issue life insurance policies that are available to you.
Which is why…
Before you just go out and buy ANY guaranteed life insurance policy that is offered to you, you really ought to speak with an expert first.
An expert who will go over all of your options with you and be sure that all of your questions are answer prior to you making the best decision possible.
For those who would like to get an idea about how much their life insurance might cost before speaking with an agent, we would recommend that they check out our Final Expense Life Insurance Quotes page when you have a few moments to spare.