Life insurance by numbers…yep it’s all just a numbers game.
You are sized up by gender, job, genetics and health. Sliced and diced by insurers to see what sort of risk they face when insuring you.
It’s a business and they intend to make money, so obviously the numbers are stacked up against you.
…or are they?
The best thing you can do is contact an independent life insurance agent to make sure that your needs are met. We know all the ins and outs of the underwriting guidelines and can find you the best possible coverage for your unique circumstance.
So let’s take a look at how these numbers shake out now….
Birthdays and Life Insurance
Birthdays matter, especially in the life insurance industry! As you age, premiums go up and the availability of different types of life insurance becomes more limited.
Life insurance is cheaper in your youth.
You are less of a risk the younger and healthier you are, so insurance companies pass on their confidence in your longevity through less expensive premiums.
If you are planning to have a family, I tell 30 somethings that now is the time to nail down a good 30 year term. You will be able to cover yourself and your loved ones throughout the most important years at a very affordable rate.
BUT WAIT! There is more…
If You Weigh More, Age Can Be Your Friend
It makes sense that you would think age is your enemy when it comes to purchasing life insurance, but there are some bright spots to celebrating another birthday later in life.
…increase about 8% to 10% for every year of age, according to Ted Bernstein, CEO, Life Insurance Concepts, Inc. “A 45-year-old male will pay on average $1,125 for a new, 20-year term policy with $1,000,000 of coverage,” he says. “The same policy purchased at age 46, will cost $1,225 – and $1,345 a year if purchased at age 47.” Investopedia, How age Affects Life Insurance Rates
So it may surprise you to find out that some insurers are more lenient than others with regard to how much you weigh later in life. If you are 65 – 70 years old, a year can make quite a difference when it comes to weight limits on the build charts. Your birthday may actually be your ticket to a lower premium!
Let’s take a look at Transamerica. The client in question is a 6 foot tall 70 year old man with a preferred plus rating looking to purchase a Trend-Setter Super policy. The weight limit is 205 lbs. If he was 71 the weight limit goes up to 212 lbs! Hey who doesn’t want to have a couple of extra doughnuts!
In a nutshell, with the assistance of an independent agency, such as Huntley Wealth, you can find the best company for your particular circumstances.
Older Applicants Catch a Break for Higher Cholesterol and Blood Pressure
Yes it’s true! Underwriters factor in the changes that happen to us all as we age.
Do You Have a Family History of Heart Disease or Cancer? If So Getting Older Helps You!
If your family has a history of cardiovascular disease or certain kinds of cancer, underwriters will penalize you. It seems unfair, but there is a risk that you will contract one of these diseases and they pass the lack of security on to you through higher premiums.
The good news is, once you reach a certain age this is no longer an issue. Depending on the life insurance company, from the ages of 60 – 70 a genetic history of disease isn’t of importance in the underwriting process. One of the benefits of growing older!
Don't Wait Too Long! Term Has Cut Off Ages - As Young As 45!
If you wait too long, you may actually lose the ability to purchase a term policy altogether.
Think about it! It doesn’t make any sense from the perspective of a life insurer to offer a 30 year term for someone after a certain point. For example SBLI’s cut off date for a smoker looking for a 30 year term is 45!!?
Now this is something to take into consideration when shopping for life insurance.
The cut off ages are different for each insurer. So if you are in your 60’s and would like to consider a 20 year term Prudential’s cut off is 65 years of age – whereas Banner Life will insure you until you are 70. It’s imperative that you consult an independent agent as they know the ins and outs of birthdays and available coverage.
I'm Too Young For Life Insurance
Life insurance is all about having a safety net - just in case the worst happens. If you have dependents it's a no brainer. Just ask Cathy, who at age 24 lost her young husband in a construction accident with a 9 month old baby to support. Her biggest regret was not purchasing life insurance when her husband mentioned it. Sigh... This is why I do what I do. Situations like this can be averted with a bit of planning.
Men and women are not created equal in terms of life insurance underwriting. Throughout the industrial world women on average live 5 - 10 years longer and tend to have a healthier lifestyle. This longevity translates into savings.
Those numbers aren’t quite as dramatic in the US, but the World Health Organization still estimates that men have a life expectancy of 75.9 and women 80.4. That’s about a 7 year difference.
…BUT that’s not all!
There are many other reasons men are given less preferential treatment when they obtain their life insurance quote!
Let’s take a look at some of the factors now:
Women statistically are less likely to engage in death defying hobbies such as skydiving, car racing and deep sea diving. Hey! Don’t get me wrong. There are many women who enjoy these hobbies, but they too will be penalized by an underwriter.
Life insurance companies are in the business of making money, not losing it. So if you want to hang from a rock ledge, do so knowing that you will pay higher premiums.
Men & High Risk Behaviour
Men have a tendency to live their lives in a more dangerous manner. Everything from fast cars, power tools and house repairs done with unstable ladders on rooftops.
Ummmm I have NO idea what they are talking about…right Brenda…?
This is especially true for youthful men who think death is for other people. Let’s face it young people have a tendency to think they are indestructible!
Males are also more likely to hold jobs that are riskier than women. Mining and construction are still male dominated fields. Yes there are women in these occupations, but it is not as prevalent. Men also run a higher risk of committing suicide or homicide or indulging in criminal behaviour.
Criminal activity also increases the chance that you will be incarcerated. People who spend time in prison suffer from more stress and are at risk of an early death due to their proximity to other criminals.
All of these factors combined make men a bigger risk in the eyes of the life insurance companies.
Food and Alcohol Consumption
Men have a tendency to eat and drink as they please. On the whole they are less vigilant when it comes to diet. Burgers, fries and booze take their toll.
Luke Zhu, an assistant business professor at the University of Manitoba in Canada, said a growing body of evidence suggests that diners, consciously or not, associate healthy food with “femininity” and unhealthy food with “masculinity.” Washington Post, Why Men and Women Treat Food Differently
With 70 – 89% of sudden cardiac events occurring in men and on average a first heart attack happening to a man at 65 vs a woman at 72 it’s pretty clear that diet, stress and lifestyle make men a riskier venture when it comes to life insurance.
Men pay on average 38% more on life insurance premiums and NO that's not a typo! In fact that figure can grow to 40% more after the age of 65! Ooof! Now this will cost you a pretty penny over 30 years.
Wanna see your cash go up in smoke? Apply for life insurance and indulge in cigarettes! Premiums can cost up to 50% more! Over the years these numbers certainly build up.
So why is life insurance so much more expensive for smokers?
Wow! Those numbers sure speak for themselves.
Kicking this damaging habit is your best bet but you still need to know how life insurance companies view your personal circumstances.
There is no way around this. Smoke heavily at your own risk!
Smokers on average die a decade earlier than nonsmokers. Yep it’s true. If you are seeking a long life, kick this habit as soon as possible.
A male smoker who is 46 years old and in good health (preferred rating) will pay $416.00 per month for a 30 year policy through Banner Life. If the man had been a nonsmoker he would have only paid $125.00 per month with Banner!
That’s $291 more per month and over the course of the term the smoker will pay out a whopping $104,760!!!
Huntley Wealth works with a well established life insurance company that will allow you to smoke the occasional cigarette, and still approve you for their best Preferred Non Tobacco rates!
Yes you heard me right!
But this is a very specific allowance. You must smoke no more than 34 cigarettes per year and test negative for tobacco when you get your medical exam.
The good news is you can indulge once in awhile without having to bear the smoking premiums.
Marijuana Smokers - Are They Penalized Too?
How often do you use Marijuana? If you consume it in any way, shape or form less than 2 times per year you can obtain a Preferred non smoker rating. But that’s VERY limiting – so what happens if you use marijuana more often?
Eighty percent of the 148 underwriters who were surveyed by reinsurer Munich Re at the Association of Home Office Underwriters annual conference last year said their company factors marijuana use into its decisions on how to price policies and whether to offer coverage. Yet, of those, 29 percent classify marijuana users as nonsmokers, potentially allowing them to qualify for the best nonsmoker rates.
Legalization has changed the way life insurers approach marijuana over the years. The first question you need to answer is: Do you use it for medical or recreational purposes?
Unbelievably if you need it for medicinal purposes the underwriters look on it it less favorably. They will immediately start digging to find out what the underlying medical condition is that you are treating. Recreational use does not indicate a medical problem.
Unfortunately, many life insurance companies still equate recreational marijuana use with smoking as Cannabis is considered carcinogenic. So what are you to do?
The best way to approach your use of marijuana is HONESTLY. If you don’t tell the truth the life insurance company may accuse you of fraud and challenge the claim. Speak with an independent agent, so that you can find the best deal for your particular circumstances.
Quitters Always Win When It Comes to Smoking
I cannot stress enough how important it is for you to quit smoking. That being said, it may take some time for your good behavior to catch up with your insurance premiums.
Often life insurance companies require you to be smoke free for a year to qualify of their non smoking rates. However there are companies that will reward you for your good intentions and give you a standard no smoking rate immediately. The best thing to do if you are a smoker that has recently quit is to have your policy reassessed after a year to see if you qualify for a better health classification.
Don't Fail to Admit to Smoking
This is a shocking case of a life insurance company denying a claim! A gentleman died in an accident. It came to the attention of the life insurance company that he failed to tell them he was a smoker. They used this information to deny his claim, despite the fact that the death had nothing to do with his health!
Are you a logger, miner or commercial fisherman? These are just a few of the most dangerous professions that will knock your premiums out of the ballpark!
Come on! A 9-5 job sitting in front of the computer may not optimize your physical health and well being – but is sure is safer than logging.
Incredibly the fatality rate for logger is 127.8 deaths per 100,000!
…AND no that’s not a typo. Sheesh! With those sort of numbers can you even get life insurance as a logger?
The answer is YES but you may have to pay more.
Your Health Always Matters
This is not to say that coverage is unavailable. Whew! Thank goodness for that because if you are in a dangerous profession you need a safety net more than most! Your premium really does depend on your personal circumstances. An insurance company will closely examine your physical health, age and gender before they offer you a rate. For example, a super fit, non smoking miner is in much better shape than a smoker who is a couch potato. Once the life insurance company assesses your health and financial situation, they may charge a “flat extra” to account for your high risk occupation. This is to compensate the company for the risk of insuring you despite your dangerous job.
The flat extra charge is an amount that is added to the premium per $1,000 worth of life insurance coverage. Depending on the policy holder’s occupation, the flat extra charge may range between $2 and $5 per month per $1,000 of life insurance coverage. Life Insurance for People with High Risk Occupations, Insure Now 365
As you can see the numbers can really stack up. I mean a $5.00 flat extra would add an extra 30K in premiums per year to a $500k policy. Man that’s steep.
Making microchips exposes you to "arsenic, ethylene-based glycol ethers, various acids, phosphine and scores of other chemically hazardous substances. The Silicon Valley Toxics Coalition, an environmental watchdog, says that there is only sufficient data on about 2% of the chemicals used in the manufacture of chips. The other 98 percent? All we can say is: Lord have mercy" Who knew??
BUILD (HEIGHT & WEIGHT)
All underwriters use height and weight charts to determine the rating they're going to offer you. So incredibly shedding a few pounds can make a huge difference, saving you up to 25% on your premiums. Bring on the smoothies!
…BUT whatever you don’t rush into crash dieting. It may be tempting to shed extra pounds fast in pursuit of better premiums, however this can backfire!
You are probably scratching your head right now wondering what the heck I am talking about.
“If I am healthier, fitter and stronger how could this count against me?”
Well I am going to answer that question right now!
Slow & Steady Wins the Race - Don't Lose Too Much Too Fast
Losing weight to improve your class, thus reducing premiums is a balancing act.
If you don’t do it right it can actually count against you and all your efforts will be for naught. This is NOT what you want. So follow my advice and approach weight loss with care.
Most life insurance companies don’t want to see you lose more than 10 lbs in one year. Yep. That’s just the way it is. If you went to your doc for your yearly physical last year and the life insurance company sees that you lost 20 lbs they will credit back half the weight you lost!
Can You Be Too Heavy to Insure?
The good news is, this is VERY uncommon. You would have to be extremely obese to be turned down for this factor alone.
It’s only when the 5’9” man hits about 329 pounds that he would be declined for life insurance by some carriers.
The average woman in the U.S. is 5’4” tall and weighs 166 pounds — also officially overweight by CDC standards. Based on NerdWallet research, the average woman, depending on her overall health, might still be able to qualify for “preferred plus” life insurance rates at some companies — the very best offered.
She would have to put on almost 120 pounds — to reach 283 pounds — before she would be turned down for life insurance by some companies.
Approximately 35% of Americans over the age of 20 are overweight. These numbers say a lot. Living with a few extra pounds is a way of life for many of us.
Your weight really isn’t the biggest factor that insurers are concerned about. The real issue is the added effect of the excess weight on your cardiovascular system and a multitude of other health issues that are connected to being overweight such as: cancer, sleep apnea, type 2 diabetes and liver disease.
I could go on but you get the point.
Buy Life Insurance When You Need It - Not When You Reach Your Target Weight
Far too many people decide to wait to purchase life insurance. The goal? To get in shape to receive the best possible rates. The problem with this strategy? Life happens in the meantime.
You are putting your family at risk with these sort of delay tactics. My advice is to reach out to a great independent life insurance agent and find the best possible policy TODAY.
After you obtain life insurance, then go back at your fitness routine. You can always have your situation reassessed once you achieve your goals.
Mom Loses Half Her Weight After Being Denied Life Insurance
This is a story from the UK. A 33 year old mom had enough and dropped 8 dress sizes after being turned down for a life insurance policy! This stunning moment jolted her into action and she used Weight Watchers to change her life and protect her family. Cheers to you Sarah Hills!
Ahh family! Hiking, holidays and Sunday dinner may come to mind - BUT when you are talking about life insurance underwriting it may actually not be so pleasurable. Did you know you are penalized or rewarded for the health of your loved ones?
Yes you are!
When you apply for life insurance, underwriters will not only sift through your personal details, but they will want to know more information about the people closest to you.
Did your father die of a heart attack in his 40’s? Did you mom contract breast cancer when she was 58? Are your siblings healthy?
All of this and more will impact the premiums you ultimately pay.
Why Is the Health of My Family Relevant?
Life Insurance underwriters review the medical history of your immediate family because they are looking for genetic diseases that may have been inherited by you.
A history of heart disease and certain kinds of cancer are of particular interest when it comes to assigning you a class. Early death and diagnosis before the age of 65 are markers that you might befall the same circumstances, making you more of a risk to insure.
So the cold hard facts are, they reward those with no genetic history of cancer or heart disease and penalize those with the misfortune of having weaker genetics.
Honesty Is Always the Best Policy
Knowing this maybe you are thinking about keeping Mom’s brush with melanoma to yourself. Hey, what they don’t know won’t hurt your premiums…..right????
NO, NO, NO!
Life insurance companies have access to the Medical Information Bureau (MIB). All of your family’s medical history is likely there. So if you were to leave out a key piece of information you would still get higher premiums once they found out.
Worse yet, if you were fraudulently approved for a preferential rating, the life insurance company may investigate, find this out and nullify the whole policy!
This would be a disaster.
Beware Genetic Testing
Many of us know that Angelina Jolie’s mom died of ovarian cancer which spurred her to get genetic testing which revealed Angelina has a genetic predisposition to cancer. Jolie opted to have a preventative double mastectomy and hysterectomy.
So genetic testing for the BRCA1 mutation has been in the media and more people than ever are opting to find out what secrets their genes hold.
Since 2008, with the passing of the Genetic Information Nondiscrimination Act (GINA), the federal government has barred health insurance companies from denying coverage to those with a gene mutation. But the law does not apply to life insurance companies, long-term care, or disability insurance. These companies can ask about health, family history of disease, or genetic information, and reject those that are deemed too risky.
Hold on! So it looks like genetic testing could be used to prevent you from obtaining life insurance. This is something to be aware of when you make a decision to do diagnostic testing. The information you find may be used against you at a later date. Proceed with care if you intend to buy life insurance in the near future.
Life Insurance Payout Investigations
Nick Hughes was diagnosed with cancer of the gallbladder with secondary tumors in his liver. His life insurance company cancelled his policy for nondisclosure of required information. They felt he had answered questions about numbness and tingling in his extremities and alcohol intake incorrectly! Both his oncologist and gastroenterologist supported his claim that these symptoms were connected to his preexisting ulcerative colitis and his answers were correct. His wife and children were left without financial support.
According to the American Heart Association, an incredible 1 in 3 deaths were from heart disease and stroke in the US as of 2013. With such staggeringly high figures, you can understand why life insurance companies thoroughly review your medical history to determine if you are at risk.
Thus far, research has successfully linked cholesterol to heart disease, but this a changeable area of research. In fact there is a lot the scientific community needs to learn about cholesterol which means guidelines won’t remain static.
One thing we do know is that if a life insurance company feels your mortality will be impacted by elevated cholesterol levels (which is the current line of thinking) they will raise your premiums.
Not all life insurance companies approach elevated cholesterol the same way, so it’s very important for you to know how your application will be seen in light of their particular guidelines.
What is Cholesterol and How Do I Understand the Numbers?
Eating and exercise habits can also play a role in how much you’ll pay, though not directly. Your overall fitness and nutrition affect health metrics like weight, cholesterol levels and blood pressure, and the insurer will look at these numbers when deciding your rates. If you have high cholesterol or high blood pressure, you’ll usually pay more, even if you’re otherwise healthy. Likewise, you’ll normally pay more if you’re overweight but healthy. Huffington Post, When It Comes to Life Insurance Rates Your Health Matters
High cholesterol is symptom free and is connected to a fatty substance, called plaque, that builds up in your artery walls causing blockages. Routine blood tests help determine if your cholesterol is out of whack so you can do something about it before you have a serious medical issue.
If you have high cholesterol or high blood pressure, it’s imperative that you talk with an experienced independent agent, because some carriers will allow you to qualify for their best rating, even though taking medications, while with others you will pay more. Likewise, some carriers are more lenient about your weight, so you want to apply with the right carrier for you!
What Is a Lipid Panel?
When you get bloodwork done as part of your application, doctors look at three numbers that make up a lipid panel:
- Low Density Lipoproteins (LDL): This is the “bad” cholesterol that leads to the buildup of plaque in your arteries.
- High Density Lipoproteins: HDL: This is the “good” cholesterol and carries the “bad” cholesterol to your liver so it can be cleaned out of your blood.
- Triglycerides: This is a fat that is stored in the cells of your body that is connected to heart disease.
Here are some basic guidelines taken from WebMD : We are not medical doctors, so please confirm and review your results with your doctor.
- High risk: 240 mg/dL and above
- Borderline high risk: 200-239 mg/dL
- Desirable: Less than 200 mg/dL
“190 mg/dL and above represents a high risk for heart disease and is a strong indicator that the individual can benefit from intensive treatment, including lifestyle changes, diet, and statin therapy for reducing that risk.
For LDL levels that are equal to or less than 189 mg/dL, the guidelines recommend strategies for lowering LDL by 30% to 50% depending on what other risk factors you have that can affect the health of your heart and blood vessels.”
- High risk: Less than 40 mg/dL
- Very high risk: 500 mg/dL and above
- High risk: 200-499 mg/dL
- Borderline high risk: 150-199 mg/dL
- Normal: Less than 150 mg/dL
What Can I Do To Prepare for My Medical Exam
The first step is to find out what your cholesterol levels have been historically. It will give you a starting point so your results don’t smack you upside your head.
The next step is to eat healthy and exercise the week before. Eating out and partaking in fatty foods days before your exam can elevate your cholesterol, so think balance and health in the days leading up to the bloodwork. That being said, do not workout the day of the exam (or even 24 hours before). This can lead to elevated cholesterol levels too!
What If I Have High Cholesterol?
Not to worry! You can apply to have your levels reconsidered if you have a history of lower cholesterol readings. The thing is you will absolutely need proof of this and it’s a process.
The key is to treat any medical issue you may have. Life insurance companies like to see that your health is being taken care of and if you have something like high cholesterol, that it’s being managed.
Be sure to contact an independent life insurance agent such as Huntley Wealth. We can help you find the best possible life insurance for elevated cholesterol levels. Remember not all insurers are created equal.
Bad Cholesterol May Not Be So Bad After All?
A controversial new study states that "There is no link between high cholesterol and heart disease in people over 60"! In fact people with high LDL (bad cholesterol) lived longer with less incidence of heart disease. It just goes to show you science is always changing, which means underwriting never stays the same. Be sure to consult a knowledgeable independent agent that knows the ins and outs.
We live in a stressful world. Work is relentless and family obligations abound. What happens when stress and your lifestyle impact your blood pressure? Well, that's pretty easy - you pay more for your premiums!
Doctors aren’t 100% sure what causes high blood pressure, but there are lifestyle issues that contribute to it.
If you are overweight, have an unhealthy diet, are stressed out or are sedentary, it’s more likely that you will suffer from high blood pressure. Other factors that may come to play are age, genetics, booze, sleep apnea, thyroid disease and chronic kidney disease.
Whew now that’s a list!
What Is Essential Hypertension?
As I mentioned the underlying causes of high blood pressure are often unknown. In fact this is the case in 95% of reported cases in the US! This is called essential hypertension, which is usually genetic and affects more men then women.
Certain lifestyle and genetic factors may contribute to the risks of developing essential hypertension. Lifestyle changes, such as a healthy diet and increased exercise are very much important for everyone with raised blood pressure. Adopting a more heart-healthy approach to life can definitely have a positive influence on future generations. Afternoon Voice, Stress Management is the Need of the Hour
How Do Life Insurance Company View High Blood Pressure?
Once again, the key is how well it’s managed it is. Life insurance companies are more concerned with what your blood pressure readings are than the medication your take to keep it regulated.
Slightly elevated blood pressure, may be the result of a temporary stressful situation or eating habits that have been unhealthy. With a little tweaking here and there you are back to normal readings.
A reading that is very high means that there is quite a bit of strain placed on your heart and arteries which increases your risk for heart attack and stroke. This is obviously going to affect your premiums negatively!
Underwriters want to know more information about you before they assess how your blood pressure reading will impact your premiums. Previous testing such as echocardiograms, family history, tobacco use and many other factors connected to your lifestyle will be assessed.
What If I Have High Blood Pressure?
The good news is you can actually get the best rates with high blood pressure if it is well controlled. Life insurance companies WANT you to take your medication and if you do and keep it in check, you are rewarded with great premiums.
Heads up, if you are newly diagnosed many companies prefer that you are on your medication for over a year. This gives them more time to see how you respond to treatment.
NOTE: Don’t forget to take your medication. Some people think if their blood pressure is only slightly elevated that they can skip the meds altogether. DON’T DO IT! It won’t get you the best possible premiums.
Make Sure Your Blood Pressure is Taken Properly
Did you know that there is a proper way to take blood pressure? Your feet should be flat on the ground and your arms extended, resting on a solid surface. Apparently this is of particular concern to the elderly. If done improperly your blood pressure may be elevated up to 14 points!
Wow! With 50% of Americans having a preexisting health condition, this is a critical issue for life insurance companies. That's why it's so important to see an independent agent to find out where you fall when it comes to underwriting guidelines.
“Preexisting condition” is an extraordinarily broad term that encompasses everything from slightly elevated blood pressure that has been successfully treated with medication to cancer, heart disease or diabetes.
The question is, what is your medical issue, and how will life insurance companies interpret that information when they assess your rating?!
Always Consult an Independent Life Insurance Agent!
Life insurance companies vary greatly when it comes to dealing with preexisting conditions. Yes, you may be denied life insurance for a pre-existing condition….
BUT the good news is there are many different insurers with unique approaches to underwriting.
It really all depends on what you are dealing with. Yes of course there are times when you may have to accept that you have a high risk medical condition that will cost you more in terms of premiums, but quite often an independent agent can find a workable solution.
From bad hearts to missing parts… Yeah, we cover that. Chris Huntley, President of Huntley Wealth
Whether you had cancer at some point in your life or live with sleep apnea, be sure to consult someone who truly knows the ins and outs of each carrier’s health guidelines. It will save you a bundle in the long run.
Most Pre-Existing Medical Conditions DO NOT IMPACT YOUR PREMIUMS
Yep you heard me right. At the end of the day, life insurance companies know all there is to know about RISK. If your condition is well controlled and not likely to kill you, then they will happily offer you a policy.
So if you have high cholesterol, elevated blood pressure, are overweight or suffer from mild anxiety, I am pleased to say we will be able to nail a policy at great rates if you are otherwise healthy.
Moderate risk conditions will definitely have an impact on the premiums you pay. What are they?? Certain kinds of cancer, a history of heart disease, sleep apnea and diabetes are viewed as moderate preexisting medical conditions.
That being said, we have had a lot of experience finding amazing rates for clients with those conditions. Take a look at our testimonial page to read some of our more interesting achievements: Testimonials
….and then there are the dreaded high risk cases…..
High Risk Life Insurance
Have you been declined for life insurance in the past? If so, then you are understandably concerned about applying again.
If you have had a heart valve replacement, Crohn’s disease or an organ transplant, please do not give up hope!
When you have a fantastic independent life insurance agent in your corner, you have the most valuable tool of all. We have managed to find affordable life insurance for some of the most unlikely cases you can think of.
That’s because we know which companies are more lenient for particular conditions. And, we take the time to contact our carriers directly to see how they may respond to certain high risk conditions. This makes all the difference in the world when it comes to your premiums.
Don’t let a preexisting condition scare you away from finding the coverage you need. If you call us today, we will personally assess your situation, shop your case to insurers and select the best option for you.
I'm Scared I Won't Get Insurance If I Take a Medical Exam
The best way to obtain a life insurance policy is to take a medical exam. Exceptions to this are far and few in between.
YES, there is “no exam” life insurance but I do not recommend it for most people. The truth is it’s very costly. Life insurance companies have to absorb the risk so they pass that burden back to you through expensive premiums.
The second issue that comes up is that even though you may choose to apply for a “no exam” policy, each life insurance company will still perform their due diligence.
SO….you will have to answer a battery of questions honestly. If you know you are sick and try to take out a policy without honestly answering all their questions, that’s called fraud. An investigation will be done and the death benefit will be nullified if they find you were dishonest. This is not a good way to protect your family.
Life insurance companies also have access to the Medical Information Bureau (MIB), which is a behind-the-scenes reporting agency, so chances are everything you are worried about will turn up, even if you don’t disclose it yourself.
If, after reading this you are still considering a “no exam” policy, there are a few positives aspects. First of all you get quick approval. The policy will usually be issued within a few days and it’s easy to qualify for.
Still in my humble opinion, even if you have a serious pre-existing medical condition, an exam-based policy is the way to go.
The Contestability Period
One of the biggest reasons people don't receive life insurance death benefits is because they die within the contestability period (usually 2 years from the date you are issued the policy). What happens is the insurer can investigate your application to see if you misrepresented anything. This can open up a whole can of worms. I tell every applicant to be as candid as possible when applying for life insurance. It is honestly in your best interest.