It is easy to apply for life insurance when you are in your 20s and have perfect health. But what happens when you have a pre-existing medical condition? For example, maybe you were diagnosed and treated for cancer many years ago. Although you have been “clean” for a long time, there is no escaping your past when it comes to applying for a policy.
Does this mean I should forget about buying life insurance? As tempting as it may be, the answer is no. You don’t want to give in just yet. You don’t want to call it a day until you exercise all your options.
Here are five things to expect when applying for life insurance under this unenviable circumstance:
1. You will have to answer more questions than the average person pertaining to your health. Make sure you are ready to accurately answer any question that comes your way, no matter what it may be. Remember, you should be 100 percent honest with the person asking the questions. There is no hiding from your medical past.
2. Sharing information regarding your medical records and physicians. In short, your life insurance company will request that you provide them with the name and contact information of your doctors. This way they can ask for your records as a means of deciding if you should be offered coverage.
3. Higher premium. Depending on your history, two outcomes are likely: you will denied altogether for coverage, or you will be offered a policy with a “higher than normal” premium. Obviously, the latter of the two is the one that you are hoping for. Sure, you will have to pay more but at least you are able to purchase a policy.
4. Possible denials along the way. Before you ever get started you should come to grips with the fact that you may be denied for coverage. And guess what? This could happen time after time. As frustrating as it may be, you need to stick with the process. Continue to apply for coverage with a variety of companies, both local and national. The more times you apply the better chance you have of finding a provider that will offer you coverage. In short, don’t let a couple of denials get you off track. Don’t stop until you have nowhere else to turn.
5. A long comparison process. If you are lucky, you will find that you are being offered coverage at a higher than average premium. While this may not sound lucky, you are actually in a good position. Your medical history is not so bad that you are being turned down altogether. To ensure that you get the lowest premium, make sure you compare at least three quotes. Yes, this will take longer but it is something you have to do from a financial point of view.
If you have a pre-existing medical condition, applying for life insurance can be a long and drawn out process. Despite the stress you may face, when you finally settle on a policy you will look back and realize that it was worth the time.