How to Buy Life Insurance With Pre-Existing Conditions

Life insurance pays a death benefit when the policyholder dies, ensuring surviving family members are provided for. But life insurance with pre-existing conditions may be more difficult to find, making it harder for people with medical issues to protect loved ones. This guide provides insight into the best life insurance policy for pre-existing conditions.

What is a pre-existing condition?

Buying a life insurance policy with pre-existing conditions can be tricky. That's because insurers evaluate an applicant's health status. But what is a pre-existing condition?

A pre-existing condition is any medical problem that exists prior to the purchase of life insurance coverage. Some pre-existing conditions are more serious than others. In some cases, life insurance with pre-existing conditions is not available at all. In other situations, insurance may be available but more expensive.

Can you get life insurance with a pre-existing condition?

Sometimes, it is possible to buy life insurance with existing medical conditions. However, purchasing cheaper life insurance may be off the table as insurers charge higher premiums for people with medical issues.

The exact rules for what conditions are disqualifying can vary by insurer. For example, many term and whole life insurers will deny coverage to someone with metastatic cancer or kidney failure. Some insurers will cover people with HIV, but others won't.

In some cases, a condition isn't disqualifying but does result in higher premiums. For example, a person with high blood pressure might be able to get covered, but they would typically pay more than someone whose blood pressure was in the normal range.

How does a pre-existing condition affect life insurance options?

Buying life insurance with pre-existing conditions is more difficult. An applicant with a medical problem will need to find an insurer that offers coverage to people with that health ailment. Depending how serious the medical issue is, this could leave a very narrow choice of insurers. Or it could mean the only types of coverage available are guaranteed issue policies that don't require medical exams.

Those who buy life insurance with pre-existing conditions can also expect to pay higher premiums or get less coverage than someone without a medical ailment. That's because insurers price policies based on the risk of the covered person passing away while the insurance is in effect. A medical problem makes it more likely the policyholder will die and the insurer will need to pay out.

Medical conditions that affect life insurance premiums

There are a huge variety of medical conditions that can affect life insurance premiums. For example, life insurance for diabetics or for someone with high blood pressure will be more difficult to obtain and more expensive.

Common examples of pre-existing conditions that could affect life insurance eligibility or costs include:

• Asthma
• Diabetes
• Depression
• Cancer
• Heart disease
• High blood pressure
• High cholesterol
• Epilepsy
• Obesity

People with these medical issues will need to shop carefully to find the best life insurance policy for pre-existing conditions.

Best life insurance policy for pre-existing conditions

Those looking for life insurance with pre-existing conditions may wish to consider the following types of policies.

Term life insurance

Term life insurance is usually the best life insurance for people with pre-existing conditions. That's because term life policies provide flexibility in the length of coverage and the amount of coverage. They are also less expensive than whole life policies.

Term life insurance isn't always available to people with pre-existing conditions. Most term life policies require medical exams and take a detailed medical history. However, eligibility for coverage depends on the nature of the condition and the insurer's policies. For example, some insurers may offer standard term life policies to someone with controlled diabetes while others may deny coverage.

Premiums for term life insurance with pre-existing conditions will be more expensive than premiums for a healthy person. But this can still be the best option for affordable and comprehensive coverage.

Guaranteed issue life insurance

Guaranteed issue life insurance is available regardless of an applicant's medical history. Most guaranteed issue policies do not require medical exams. However, there are usually strict limits on the amount of coverage available. There may also be restrictions, such as a two-year waiting period before the death benefit pays out in full.

Still, these policies may be a good option for those whose conditions are too serious to qualify for standard term life insurance. For example, if someone is looking for life insurance with pre-existing cancer, this may be one of few options available.

Group life insurance

If an employer offers group life insurance, it may be available regardless of pre-existing conditions. However, there may be limits on the amount of coverage available. And the coverage may be lost when leaving the job.

Final expense life insurance

Final expense life insurance is a small policy intended to pay funeral expenses. These policies are often available regardless of pre-existing conditions.

How to get a life insurance policy with a pre-existing condition

Getting life insurance with pre-existing conditions can be difficult. Insurer policies differ regarding which conditions are disqualifying. That means a person with medical issues will need to shop more carefully to find the best life insurance policy for pre-existing conditions.

If someone has a serious medical problem, it may not be possible to get standard term or whole life insurance. In these situations, the only life insurance with pre-existing conditions that may be available could be a guaranteed issue policy, a group life insurance policy through work, or final expense coverage.

What happens if you get denied for life insurance?

A person who gets denied for life insurance may be able to appeal the denial and request reconsideration. However, if they have a serious medical issue, then life insurance for pre-existing conditions of that nature may not be available from most insurers.

Someone who is denied coverage by most term and whole life insurers may wish to look into guaranteed issue coverage. However, it's important to recognize the limits of this type of policy. The death benefit may not be very large and there may be a waiting period before the death benefit is fully paid out.

Did you know? Some life insurance companies do not require medical exams. Check out The Ascent's Haven Life Insurance review.