We’ll often get calls from individuals looking to purchase a life insurance policy for someone who has been diagnosed with hepatic failure.
Now they may not…
Always say that they have “hepatic failure”. They may choose to say that they have “liver failure” instead, or they may keep their medical condition rather “vague” and simply say that the individual in question has a lot of “health issues”.
Which is fine by us…
Because here at TermLife2Go, we love helping folks qualify for life insurance particularly in cases where the individual may not believe that they can still qualify for “any” type of life insurance policy.
Now what makes…
Helping folks who have been diagnosed with hepatic failure or liver failure the most difficult is that there are a lot of potential causes for one to develop this condition. After all, developing liver failure isn’t a disease, it’s a symptom of some other pre-existing medical condition which has led to ones’ liver failing.
One of the first things that we need to learn here at TermLife2Go, before we can be much help to our clients who have been diagnosed with hepatic failure is:
“What pre-existing medical condition has caused you to develop liver failure?”
Is it because you:
- Ate a poisonous mushroom?
- Overdosed on acetaminophen?
- Had an allergic reaction to some type of prescription or herbal medication?
- Suffer from alcoholism?
Or have you contracted some type of virus such as: Hepatitis A, B, or C which has caused you to suffer from hepatic failure?
Now it’s important…
To understand why you’ve been diagnosed with hepatic failure, because, if diagnosed early enough, it’s possible that you may be able to receive treatment for you “underlying” condition and possibly avoid liver failure.
You may even…
Be able to reverse some of the existing damage that has already occurred, which is great!
However, for the purposes of our discussion here, we don’t want to “dive” too deep into the many possible outcomes that might be possible for someone who may not be suffering from a “permanent” or “chronic” case hepatic failure.
To do so…
Would simply be beyond the scope of this brief article here.
We would rather focus on those who have been diagnosed with permanent or chronic liver failure and simply suggest that those who don’t fall into this category to give us a call so that we can learn more about their specific situation so that we can advise them appropriately.
Now as for those…
Who have been diagnosed with chronic or permanent liver failure, or for those who have been told that they cannot qualify for a traditional term or whole life insurance policy, we’d like to take a moment and discuss a few options that may be available to them.
Always get a second opinion. It’s always important to understand that when it comes to applying for a traditional term or whole life insurance policy “different” insurance companies are going to have “different” underwriting guidelines.
Which means that…
Even if you’ve been declined coverage by one or two different insurance companies in the past, that doesn’t mean that you’re going to be denied by EVERY life insurance company in the future. This is why, it’s always important to get a second opinion before you give up.
Now the good news is that…
Here at TermLife2Go we work with dozens of different life insurance companies. So, if there is a life insurance company that is going to be willing to offer you “traditional” coverage, there’s a really good chance we’re working with them already and we’re going to be able to help you get approved by them!
Now will there be some individuals we simply can’t help qualify for a traditional term or whole life insurance policy?
Sure, there will. But this is why we’ll also want to be able to take a look at Option #2.
Option #2 involves taking a look at some “alternative” life insurance products which will include exploring some “guaranteed issue” life insurance policies.
Guaranteed issue life insurance policies are life insurance policies that will not require you to be able to “medically” qualify for coverage. For these “types” of life insurance policies, you’ll generally only need to meet 3 requirements.
- First, you must be a US citizen.
- Second, you must meet the minimum age requirements.
- And third, you need to live in a state where these “types” of life insurance policies are offered.
And that’s it!
But there is a catch….
Unfortunately, guaranteed issue life insurance policies will have a few disadvantages associated with them which could potentially become a “deal breaker” for many. The three main disadvantages that we like to point out to our clients are the following:
Small policy limits. Most guaranteed issue life insurance policies are going to max out at about $25,000 dollars in coverage. So, if you’re looking for more coverage than this, chances are, a guaranteed issue life insurance policy may not be a good fit for you.
Dollar for dollar, guaranteed issue life insurance policies tend to cost more than other traditional types of life insurance policies. Now this does not mean that guaranteed issue life insurance policies are going to be “super” expensive, it just means that if you were able to “medically” qualify for a traditional life insurance policy, chances are you would receive more coverage for the same amount of money.
Graded Death Benefits. Graded death benefits are “clauses” written into guaranteed issue life insurance policies which states that your newly purchased guaranteed issue life insurance policy WILL NOT provide coverage due to death caused by NATURAL causes for a set period of time.
Uggh! That doesn’t sound good, so let’s take a moment to explain…
First of all, let’s define what a “natural” cause of death is. Natural causes of death would be a “cause” that is related to some type of illness or disease. Examples might include:
- Heart disease,
So… if you purchase a guaranteed issue life insurance policy, these “types” of causes of death would not be covered until the graded death benefit period expired.
So… how long is the graded death benefit period?
The “length” of a graded death benefit period will vary depending on which insurance company you choose to purchase your guaranteed issue life insurance policy with, but in general, most graded death benefits will usually last 2-3 years.
Why would anyone purchase a life insurance policy that contained a graded death benefit?
This is a great question, and one that can be easily answered. You see, for most, guaranteed issue life insurance policies are a “last resort” type of life insurance policies.
These are life insurance policies which are not going to require that you take a medical exam or answer any health-related questions which means that even individuals with really serious health conditions can qualify!
Given the option between NO COVERAGE vs a policy with a graded death benefit, for many, deciding to purchase a guaranteed issue life insurance policy is a great option.
What if I die of an “accidental” cause of death during the graded death benefit waiting period?
Accidental causes of death such as a slip and fall, motor vehicle accident or natural disasters are causes of death that are covered immediately are not subject to the graded death benefit, simply because accidental causes of death are causes that can’t be “predicted”.
Lastly… Many folks will also ask what happens should they die during a graded death benefit waiting period of natural causes?
In cases like these, most life insurance companies will have some “type” of policy that will include returning a portion (or 100%) of the premium paid by the deceased to the deceased’s beneficiaries.
Each company will have their own rules and regulations in cases like these, we recommend that you fully understand the graded death benefit clause of the different insurance companies that you are considering to be sure that you’re making the right decision for you and your family.
Confused? Don’t be!
Here at TermLife2Go, our only goal is to help you find the best life insurance policy that you can qualify for. So, if it turns out that you can qualify for a traditional term or whole life insurance policy, great! We can help you out with that.
If it turns out that you’ll need to pursue an alternative life insurance product like a guaranteed issue life insurance policy, we can help you out with that too! You see here at TermLife2Go, because we’re an independent life insurance brokerage, we’re able to work with dozens of different life insurance companies.
So, what are you waiting for? Give us a call today or visit our Online Life Insurance Quotes page and see what we can do for you!
Leave a Comment