Life Insurance Policies

If you have a pre-existing health condition, finding life insurance coverage at an affordable rate can be a challenge. There are companies that specialize in providing high risk coverage to insureds with pre-existing health conditions, but this coverage often comes at a heavy cost.

Life insurance is essentially a bet between you and an insurance company that you won’t die before the term of the policy expires or the premiums you paid the insurance company, plus the investment revenue they produce exceed the value of the benefits. To hedge their bets, insurers charge higher premiums or deny coverage to potential clients with a history of health problems or conditions.

Life insurance companies go to great pains to make the best coverage decisions for their bottom line as possible, paying actuaries to determine probability of mortality and physicians to conduct health exams of potential clients. All of this is done to determine as exactly as possible how much of risk each potential insured poses to the company.

If you’re determined to have pre-existing conditions that are likely to raise your premiums or possibly disqualify you from college, it becomes imperative for you to shop around if you wish to purchase life insurance to provide for the financial security of your family after you are gone. There are options available for customers with pre-existing conditions, provided that they are willing to dilligently search for appropriate insurance products.

The first step in finding life insurance coverage at a reasonable price if you have a pre-existing health condition is to use an insurance agent who has experience in finding coverage for clients who are considered “impaired risks.” These agents, by virtue of experience, know which insurance companies place the lowest priority on your specifc pre-existing condition and will charge the lowest premium for it. They’ll also be able to present your individual circumstances to prospective insurers in the best possible light.

Prior to applying for life insurance coverage, you’ll need to collect all documentation of your pre-existing health and medical conditions. It’s important to fully and accurately tell your insurer about the illnesses or disorders that you may suffer from and also inform them of what medications, therapies or treatments you may be taking for the problem. You’ll need to be as complete as possible, to the point of informing your potential insurer of the specific dosages you’re taking as well as being able to name all the doctors and physicians you’ve seen in the past decade. It’s a good idea to make several copies of this information once you gather it all, and place at least one copy in a secure location.

It’s also important to create a health summary, which lists your positive health habits as well as any illnesses or injuries you may have suffered. For example, if you’re a non-drinker or non-smoker, you’ll probably want to list this on the summary. Any exercise or fitness program you may participate in should also be listed. With regard to your illnesses, you don’t need to list the ones from which you’ve been cured, but if you’re currently in remission of an illness, you’ll need to list that. Also you’ll probably want to list any accidents you’ve been in since you were an adult, especially ones that led to permanent damage or the need for a permanent enhancement, such as metal screws or a steel plate.

When you’re looking for life insurance and you have a pre-existing condition, it’s best to apply to new insurance companies. Newer companies are more likely to be willing to take a chance on you than older, more established insurers and will also be more likely to give you a competitive rate.

When you do find an insurer that you like, you’ll probably be expected to submit to a medical exam. Avoid strenuous activity, get plenty of sleep and avoid caffeine for at least 24 hours prior to the exam, because lack of sleep or stress can exacerbate existing health conditions.

Finally, as a last resort for some customers may be a guaranteed issue individual life insurance policy. These policies are issued without an medical examination or questionnaire. These policies should not be mistaken by customers with other policies known as simplified issue or quick issue policies, which don’t require a medical examination, but do involve the potential insured having to answer questions about his or her medical history. These products are often marketed toward elderly customers and only provide a small amount of coverage, usually between $15,000 and $20,000. These products often come with higher than usual quarterly or semi-annual payments.

Each life insurance company follows a different set of policies and procedures when underwriting a policy. Your health is a big part of this process, but understand that one company may charge much more or much less for a specific health condition that you may have. The keys to finding the best rate is to understand your prospective insurers underwriting policies, to shop around and to be prepared for any physical exam your insurer may require.

By being upfront and above board with your agent prior to the underwriting process, your agent can select a company best suited to offer a good premium for any existing health conditions you may have. Each individual insurer sets its own priorities regarding existing health conditions, and some will charge you more for a certain condition than others. By being honest with your agent from step one, you can help him or her steer you to the company that will offer you the most competitive price. Remember that in most cases, your agent is an independent operator, meaning that he or she isn’t an employee of any particular insurance company. This means he or she is free to shop around and find the best possible insurer for you.

Going into an insurance medical exam, you should remember that the medical professional’s job in that examination is to ascertain how much of a risk you pose to the insurance company, and to determine what premium you should pay to cover the risk.

In most medical exams for life insurance, the exam is done in your home or office by a paramedical professional. When you go in for the medical exam, you can expect to answer lots of questions about your medical history and your family medical history. You’ll also undergo a series of tests. Doctors will check your weight and height. They’ll test your blood pressure. They’ll also take blood by finger prick or needle to do laboratory analysis for things like HIV, hepatitis, diabetes, immunodeficiencies or other diseases. You’ll also be subjected to a urinalysis to check for illegal drug use or tobacco use.

Depending on how old you are and how much coverage you’re trying to buy, the exam may cover other areas. For example folks over the age of 50 seeking to purchase $1 million in coverage can expect to have to undergo an EKG and get tested by a doctor instead of a paramedical professional. As the age of the insured and the policy amounts get higher, the insurer may also order a treadmill test as well.

Some low face value policies don’t require a medical exam at all. For example, if you’re under 40 and you’re only seeking a $50,000 policy, chances are you won’t have to submit to an exam.

You don’t need to go on a crash diet or emergency workout routine before a medical exam for your insurer. Chances are that if you have lifelong bad habits, a week of doing pilates isn’t going to make much of a difference. Besides, insurers aren’t looking for Olympians, they’re just trying to insure average folks. There are a few things you can do to make your medical exam easier, and curb some potentially premium-raising physical reactions.

For starters, get a good night’s sleep before the exam. Being tired can exacerbate any health conditions you might have, and thus potentially raise some red flags with the insurer’s physician.

Keeping your blood pressure low is also important. Hypertension, or high blood pressure, can be a contributing factor to a higher insurance premium. By doing things to keep your blood pressure in check, such as refraining from smoking, avoiding salty foods and abstaining from alcohol, you can keep your blood pressure low.

Stay calm. Avoid coffee and other stimulants because it can lead to an abnormal looking EKG. Staying calm is perhaps the best overall advice for folks about to undergo a life insurance medical exam. Stress can exacerbate health conditions.

Avoid strenuous physical activity for about a day before the exam.

Information gathered from a insurance exam is entered into a national database, so it’s rather pointless to schedule another exam for another company if you don’t get favorable results from your current exam.

It is possible to buy high risk life insurance policies that don’t require medical exams, but in most cases it is more beneficial to undergo the medical exam and find out how much your premium is going to be.