Nearly half of American adults under 65 years have a pre-existing medical condition. These conditions include asthma, diabetes, heart diseases, cancer, autism, obesity, and epilepsy, among others. While living with chronic health conditions means adjusting your life, it shouldn’t change your eligibility for life insurance.
Most life insurance companies offer insurance plans and policies for individuals with different health issues. This article highlights important things to know when applying for life insurance with a pre-existing condition.
What to Expect When Applying for Life Insurance
There are a lot of benefits of applying for life insurance. However, you also have to know what to expect when you look for a life insurance plan as well.
When applying for life insurance with a death benefit, you should follow the application and underwriting procedures of the company. Your insurer should gather important information about age, health, and other risk factors. Insurers compare this information against the amount and length of coverage applied to decide if they can provide insurance and the costs. Below are the steps:
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1. Get a Quote
You start by getting a life insurance quote from the insurance company. This will give you basic cost estimates and is beneficial for those with basic coverage needs. However, with pre-existing medical conditions, the actual quote may differ from the initial quote.
2. Provide Your Documents
Like other processes, you should provide some identification documents. Commonly asked documents include:
- Proof of identity – Birth certificate, passport, or driver’s license
- Proof of residency – Utility bill, signed lease, or property tax statement
- Proof of income – Employment letter, tax returns, or pay stubs
With these documents, you can proceed to complete the application form.
3. Medical Exam
The insurer will require that you provide medical examination results. The examiner will evaluate basic parameters, such as weight, height, blood pressure, urinalysis, and other tests depending on your known pre-existing condition. Insurance companies use this information to underwrite, evaluate risks, assign rate classification, and calculate premiums.
4. Sign the Policy
If you are comfortable with the drafted policy statement from the insurance company, the last step is signing the policy, and you start paying premiums. However, ensure that you read the fine print of the contract, especially the terms and conditions, coverage amount, method of payment, premiums, exclusions, and riders, before signing.
How to Improve Insurability for People with Chronic Conditions
You can up your chances of being insured and lower your rates by;
- Adhering to your treatment plan – Showing that you are in control of the medical condition reduces the risk potential for insurers. Ensure that you follow your treatment plan to the latter.
- Lose your weight – Losing weight might prove challenging. However, it is possible and vitally crucial for your overall health and wellbeing. Weight affects your health and life expectancy. Modify your diet and increase activity to drop some weight.
- Exercise regularly – The health benefits of physical exercise are well known. Exercising eliminates most risk factors that make people with chronic conditions risky to insure. However, ensure that you consult your physician before exercising. Even then, simple activities, such as strolling, have proven benefits.
Endnote
Insurance companies use health and age to determine a person’s insurability and rates. Young and physically fit people are less risky than old and less healthy people. However, having a pre-existing condition cannot prevent you from getting life insurance coverage. Pre-existing conditions can only increase your premiums or rates.
