Life insurance covers the potential risks to your life. Your insurer charges a premium for that after conducting due diligence in determining all the potential hazards to your life.
If you have not purchased life insurance yet and have been diagnosed with an ailment, the chances of getting coverage are low. This is because the risk to your life increases significantly, and offering you coverage may be a loss-making proposition for the insurer.
Fortunately, getting life insurance with pre-existing conditions is possible.
Purchasing Life Insurance with a Pre-Existing Ailment
Centers for Medicare and Medicaid Services (CMS) once reported that almost 50% of all adults below 65 years of age suffer from pre-existing ailments of some form. Most people contract chronic problems like cardiac disease, diabetes, asthma, etc., or even HIV with advancing age. Even after being diagnosed with them, it is possible to get life insurance coverage.
Pre-existing Medical Conditions and the Cost of Life Insurance
Life insurance providers factor in your health to determine your insurability quotient and the premium value. The likelihood of death for a physically fit person enjoying good health is lesser compared to an ailing person.
The statistical and mathematical actuarial models deployed by insurers suggest a high risk of insuring a person diagnosed with an ailment. To cover such persons, term life insurance plans of different durations are available. However, the annual premiums for such plans are usually 8%- 10% higher than those for normal plans.
Different Options for Securing Life Insurance Coverage If You Have Pre-Existing Ailment
You can secure your life with suitable insurance coverage even though you have a pre-existing ailment. Explore the options available with you below:
1. Enrol in Group Life Insurance Offered by Employer
If you are employed, check out if your employer is offering group life insurance coverage for all workers engaged by it. If so, you can enroll in the plan, and your candidature will be accepted automatically. The coverage would be less and may span two to three times your salary.
2. Rely on the Wisdom of an Insurance Broker or Agent
A reputed agent or broker can ease your search for the best life insurance for pre-existing conditions. An agent will be aware of the underwriting standards for different diagnosed ailments for various insurers. They can suggest you the best and most cost-effective policy for your insurance needs.
Share your condition and medical history with the agent without concealing anything. The agent can take up your cause with the insurer. Discuss the steps taken by you to manage your ailment effectively. This will work in your favor.
3. Opt for a Critical Illness Term Plan
If the symptoms of a blossoming disease have been diagnosed recently, you should immediately go for a critical illness term plan. The premiums for such a plan may be charged once, annually, or monthly.
Your entire sum insured will be refunded if you are diagnosed with a terminal disease or in the event of your unfortunate death. This implies you can cover the expenses related to your treatment and care with the lump sum amount received.
Conclusion
It is advisable not to hide your medical condition from the insurer while seeking life coverage. Upon discovery, your policy can be summarily canceled without the return of premium life insurance, and you may be prosecuted for fraud.
If your family has received insurance benefits after your death, the same can also be recovered by the insurer. You must follow your treatment regimen sincerely, exercise regularly, and keep your weight under control. This will signify to the insurer that you are working hard to keep your ailment from aggravating.
