Life insurance coverage is an important part of any good estate plan. It provides the peace of mind that loved ones will have financial security when you are no longer around to provide for them. It can also often be leveraged to limit the tax obligation your beneficiaries will have in regards to their inheritance.
One thing I hear often in estate planning consultations when discussing the benefits of life insurance is the worry that a pre-existing health condition is going to disqualify the client from obtaining life insurance. Years ago, they were probably right. There were few options available, if any. Competition in the market has driven more and more insurance companies to look into this market. You can now find plenty of websites, like this one, that can assist consumers who are looking for life insurance with pre-existing conditions. If you find yourself seeking out this type of coverage, I put together a little bit of information to help guide you.
The Underwriting Process is Different For Each Company
If you’re not sure how the life insurance marketplace works, you’re not alone. But you should know that the underwriting process, or how premiums are set, differs for each company. Life insurance with pre-existing conditions falls under the impaired risk category. That means that the greater the risk you pose for the insurance company, the higher your premium rate will be. However, there is a twist, because some companies offer better rates for certain conditions than others and the underwriting process is different for each company.
Get the Help You Need
In many cases, if you use your resources wisely, you can easily find those companies that specialize in working with people with pre-existing conditions. Some companies offer reduced rates for folks with Diabetes, while another company may offer more competitive rates for those inflicted with cancer. Don’t be afraid to seek out help from online resources and companies that specialize in helping folks secure life insurance. The right insurance experts can help you find those specific companies that can offer you the best value on life insurance with pre-existing conditions.
Take Proactive Steps to Mitigate Your Pre-existing Condition
While you cannot change the fact that you have cancer or another pre-existing condition, you can take steps to lessen your risk by maintaining healthy lifestyle choices. Some companies offer no exam coverage, but many others review your health records. Showing that you do not smoke and take proper care of yourself through diet and exercise can possibly reduce your policy premium.
Securing quality life insurance with pre-existing conditions isn’t impossible. Understand the impaired risk market and look for those companies with underwriting guidelines that are most favorable to you and your specific condition. If you’re unsure, seek professional help and get the coverage you deserve.