Have you had life insurance coverage declined?
If you have a chronic medical condition, use prescription medicine, smoke, or are overweight, you may have had life insurance coverage declined because you are a high risk.
Many life insurance carriers avoid people with chronic illnesses including diabetes, allergies, and heart disease. If you have a history of serious illness, such as cancer, you may also be disqualified for coverage.
Life insurance carriers carefully select customers when it comes to individual life insurance policies.
Insurers can also deny coverage, or charge higher premiums, based on pre-existing medical conditions. If you have a pre-existing medical problem, you may be classified as high risk by the insurance company.
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Sometimes, having minor medical conditions may make it difficult to get approved for life insurance, even if it’s controlled by medication.
High risk applicants usually include the following:
If you are a Sub-Standard, or High Risk applicant for life insurance, you may want to compare plans and offers for life insurance from many carriers right away.
If you have your life insurance coverage declined by all insurers, you may still have another option.
It’s called Guaranteed Life Insurance Coverage. This type of life insurance provides coverage for people who may or may not be high risk.
Guaranteed life insurance means your acceptance is guaranteed. This coverage may be available for people age 45-85.
You may be able to get up to $25,000 of life insurance with no health questions.
What’s the catch? The amount of coverage is usually limited to $25,000.
The premiums are higher than for life insurance policies that are fully underwritten, requiring a medical exam.
Also, the policy benefit is considered Graded Benefits. That means, your full coverage is not available from the first day you own the policy. You don't have full coverage until you have owned the policy for 1-2 years, depending on the insurance company, and your policy.
Graded Benefits may apply for the first 1-2 years, meaning only a portion of the $25,000 coverage is paid out if you pass away within the first year.
After you have owned the policy for 2 years, the full $25,000 of coverage is paid to your beneficiary if you pass away after owning the policy for 2 years.
Make sure you read the Graded Benefits Clause carefully, and fully understand how it works. If you have questions, ask your insurance agent or life insurance company to explain it to you in writing.
Checklist for High Risk Applicant’s:
If You have A Serious Medical Condition: