You may have heard that if you have a pre-existing condition, it’s hard to buy life insurance. And that’s true from a lot of shoppers. Depending on your specific health condition and how you and your doctor work together to treat it, some insurers may decline, limit, or charge you more for life insurance.
Don’t worry. You have options.
Most people searching for life insurance with a pre-existing condition are trying to locate the right company for their specific health condition. The good news is, that is what we are here to help you accomplish. Our goal is to find our clients the best life insurance company at the best price based on each client’s unique health and lifestyle. The keys to our success are contained in this article.
There are two main things we consider when inquiring into preexisting conditions: the particular disease or health risk and the types of prescription medications the client is taking. Often overlooked, but no less important, are the RX medications taken by a client. For more on the importance of medications, check out our article:
Our 4 Step Process For Life Insurance Approvals With Pre-Existing Conditions:
- Applicant will be asked the questions that a life insurance underwriter will want to know.
- TermLife2Go will find the right life insurance company for your specific pre-existing condition and/or prescription medications.
- TermLife2Go will review the “fairness of the offer” of the life insurance approval with a pre-existing condition and/or prescription medications.
- If it turns out that the offer is not fair, TermLife2Go will take your existing labs and offer them to another life insurance carrier for review.
Do you have a pre-existing condition and/or take prescription drugs? Have you been declined for life insurance or postponed for life insurance due to a pre-existing condition and/or prescription drugs? Have you been given a rate class that seems over the top due to a pre-existing condition and/or prescription drugs?
If you answered yes to any of these questions, we can help. Read on.
It is important to have a Life Insurance Pre-Existing Condition Plan
People with pre-existing conditions have a couple of life insurance options. You may be able to find the life insurance you’re looking for after shopping around different companies, since they all use different rules to approve and price their coverage. Or, if you want a small death benefit and you aren’t worried about price, you could apply for a type of no medical exam life insurance called guaranteed issue or guaranteed acceptance.
There is no “one size fits all” when it comes to life insurance. Everyone has a unique situation and need. And everyone has a unique health and lifestyle profile.
This is why we use a 4 step approach with individuals who are applying for life insurance that have a pre-existing condition and/or take prescription drugs. People with health problems can get life insurance. That is why we make it our job to find life insurance for people with health problems.
Life Insurance health classes
The difference between rate classes can be significant. For example, the premium from preferred plus to standard is an increase of 100%. For our readers who are considering more expensive forms of coverage, such as estate planning, buy sell agreements, or key person business insurance, the difference between preferred plus and standard (or table rated) can make or break the policy.
Breaking down the 4-step process
- Step 1: we take the time to ask the questions that a life insurance underwriter will want to know. Let’s say you are looking for life insurance with pre-existing medical conditions.
- For example, if you have diabetes, then do you have any side effects of diabetes such as neuropathy, retinopathy, or renal failure? What is your blood sugar level? What age were you diagnosed? What was your last A1C?
- The specific line of questioning that we ask you will depend on the prescription medications you take and the pre-existing conditions you have.
- We may even have a great no physical exam life insurance option.
- Also see, Tips on “acing” your life insurance exam
- Step 2: we then find the right life insurance company for your specific pre-existing condition and/or prescription medications. Life insurance companies will offer a *quick quote based on the information we provide them. TermLife2Go will then review the various quick quotes and explain what life insurance carrier we recommend for you and why we believe that specific life insurance carrier is the best choice. We target specific life insurance carriers that have a unique “niche” for your specific pre-existing condition and/or prescription medications. Our goal is to find you the best company, at the best price.
- *quick quote: Life insurance carriers will provide feedback, termed a “quick quote”, based on a client’s pre-existing medical condition or lifestyle. TermLife2Go then uses this “quick quote” to determine which life insurance carrier will be the best fit. It is a great way to know with a great deal of certainty what to expect from various life insurance carriers when dealing with a medical or lifestyle pre-existing condition.
- Step 3: we review your life insurance approval with a pre-existing condition and/or prescription medications to make sure that it is a “fair” offer. Once you have gone through the underwriting process the life insurance carrier will give you an offer on life insurance. Often it is the same rate class as we quoted you initially. However, at times certain unknown information or unforeseen lab work will cause the life insurance company to offer a different rate class (sometimes better, sometimes worse). TermLife2Go will then review your offer and make sure that it is a fair offer based on your lab work and medical records.
- The “fairness” of the offer is determined by what rate class the life insurance company’s peers would have offered. If it is a fair offer then all is well. If it is not a fair offer then we push back a little and ask the underwriter, “What gives?” And if we are not happy with the response we move on to step 4.
- Step 4: if it turns out that the offer is not fair, (remember, the “fairness” of the offer is determined by what rate class the life insurance company’s peers would have offered), we will take your existing labs and offer them to another life insurance carrier for review. Rest easy, you do not have to take another paramedical exam. We simply use your original labs and pass them over to another life insurance carrier. This way, we at TermLife2Go are doing whatever we can to ensure that you are getting the best life insurance company, at the best price.
Pre Existing conditions
Life insurance with pre-existing conditions can be anything ranging from:
- weight issues
- driving record
- drug or alcohol abuse
- felony or misdemeanors
- sleep apnea
- heart disease
- or a broad spectrum of other pre-existing conditions
Here is a real life example of a client looking for life insurance with a pre-existing medical condition. The client, let’s call her Jane (44 year old female applying for a $500,000 20 year term), applied for life insurance with a large call center. She had a slight weight problem. She was 5’3″ and 220 lbs. This particular agency only represented one life insurance carrier. They could not or would not move her to a different life insurance company. They simply gave her the tired response, “It is what it is.” The life insurance carrier gave her a standard rate class even though she was in perfect health despite being outside of the “norm” per a life insurance build chart.
When Jane called us she had already accepted the life insurance policy (which is a good idea because you never know). We explained that with good labs (blood work, urine sample, blood pressure reading) she should be able to qualify for a preferred rate class with a specific life insurance carrier. With nothing to lose she decided to have another go and apply for life insurance again, this time with the life insurance company we recommended.
The result: she came back at a preferred rate class. The difference? She now pays around $540 a year instead of $850. That is over $300 a year in savings or $6,000 over the life of the policy (20 years).
Jane sought us out. However, all too often people fail to realize they have other options because their original agent told them they could not reapply for life insurance for 6 months. The truth is, if your policy came back at a different rate class than you originally qualified for you can reapply for life insurance right away. The key is, you need to verify whether or not you will be able to qualify for a better rate than you were just offered. That is where TermLife2Go comes in.
Best Life Insurance for people with medical conditions
So what is the best life insurance for people with medical conditions? The answer to that question varies depending on the medical condition. The company that might be best for diabetes is not necessarily going to be best for the person recovering from cancer. Since there is not one best life insurance company for people with pre-existing medical conditions, it goes without saying that the key is to have options. TermLife2Go works with dozens of different top rated best life insurance carriers. We focus on life insurance niches in order to get our clients with pre-exsisting medical conditions the best life insurance rates available.
What if I have been recently declined?
If you have recently been declined for life insurance don’t give up hope just yet. All too often it is because the company you applied with was not the right company from the start.
However, if you were declined and there is no company that will cover you, then consider guaranteed issue life insurance. This type of policy comes in two forms: final expense insurance generally ranging from $20,000 to $25,000 and burial insurance starting as low as $1,000.
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