Life insurance offers you a way to still be of help for your loved ones after you pass. A well-selected policy gives you the chance to continue providing (financially) for a spouse, children, or parents in case the wors happens.
But not everyone has the same chances when it comes to choosing such a product. For instance, people who already suffer from health issues may encounter some extra hurdles in their effort to be of use from the beyond.
Still, you shouldn’t lose hope. Regardless of your current situation, there is still a good chance that you’ll find something to fit your needs.
Understand the Process
When you first apply for life insurance, you have to answer some medical inquiries and submit yourself to a detailed medical exam. The main purpose of this step is to assess your current health state and identify any pre-existing conditions.
A pre-existing condition is defined as an illness or injury (usually chronic or long-term) a person has before they start a new health care plan. As such, if you have a severe illness (diagnoses like diabetes, Parkinson’s disease, Alzheimer’s, or Coronary artery disease), you can safely say you’ll be included in the “people with pre-existing conditions” category.
On a side note, a severe illness also means you won’t be a good candidate for standard life insurance policies. But, you still have the option of graded premium life insurance – a policy designed to help people in difficult situations who want to leave something for their families.
As a future life insurance buyer, you need to know there are two main products:
- permanent life insurance (for life)
- term life insurance (for a period of time)
Each product is designed to help your loved ones in the event of your death, but the difference is in their availability in time.
Also, it’s important to be truthful during your medical exam and assessment, and make sure the insurer has all the necessary data. Otherwise, if the insurer finds inconsistencies in the claim (after your death), it may affect the amount your loved ones receive.
Choose the Right Product for You
In short, yes, you can still get life insurance if you have a pre-existing health condition (even if it’s a severe illness). However, the premiums will be different (most likely higher), depending on your illness, age, and several other factors.
Once you understand how life insurance works it’s also important to understand your needs. For instance, people without a family depending on them or without a spouse may feel better-taken care of with a long term care insurance package instead of a life insurance one.
Also, we strongly recommend getting a product that allows for changes as your life progresses. You never know how the situation could turn, so it’s important to be able to amend your current plan as needed.
Overall, it’s a good idea to prepare for the not-so-pleasant events of life. But, before you make any life-long decisions, it’s important to familiarize yourself with the market, compare products, and understand your needs.