There are many people that want the security of having life insurance. It gives them the comfort of knowing that their loved ones are going to be financially looked after. Once the insured person passes on. Deciding to buy life insurance is one thing. Knowing which type of life insurance to buy is another. Also, knowing if you are going to qualify is another issue. Life insurance providers have certain criteria that they follow. This has been developed for those that they sell life insurance to. One of the metrics can be the state of the insurance shopper’s current health. They may want to know if the insurance shopper has any pre-existing medical conditions.
Why Do Insurance Companies Care If You have a Pre-Existing Medical Condition?
Life Insurance Companies are a business. They are in the business of making money. Which they do off the premiums that insured individuals pay. The longer one pays those premiums with no claims being made, the more money the Insurance Company makes. But, they are taking a risk when they provide insurance. Their objective is to reduce those risks as much as possible. A person who has a health condition increases the risk for the insurance company. They want to know what percentage that risk is increased. It is why they care about an individual’s pre-existing health condition.
What are Pre-Existing Conditions?
There is a long list of pre-existing health conditions. Ones that could interfere with one’s ability to get life insurance. Each insurance company is different. Some conditions may be considered more serious by some insurance providers. Compared to others. Some of the common types of health conditions that may affect your life insurance are;
- Heart Disease
- High Blood Pressure
- Kidney Transplant
- Multiple Sclerosis
- High Cholesterol
- Alzheimer’s disease
What Kind of Life Insurance Can You Get With a Pre-Existing Condition?
At one time it was far more difficult to get Life Insurance if one had a pre-existing health problem. But, a lot of the Insurance companies were missing out on getting new clients. With the advances in medicine today many of the conditions are fully treatable. Individuals can live a normal life and have a normal lifespan with them. This has caused some insurance companies to think twice about their exclusions. To do this, they may categorize the specific illness into categories. Such as mild illnesses or serious illnesses. Then based on this they may provide a modified life insurance policy.
Mild Health Conditions
Some insurance companies may look at conditions as being mild. Such as some forms of diabetes or asthma could be classed as mild. A specific insurance provider may offer life insurance with higher premiums. Also, at a capped payout limit. They will likely insist on a medical screening that includes blood and urine tests.
Serious Health Conditions
In this category, it would likely include heart disease and strokes. Also, cancer. Although serious, there may still be an opportunity to get some life insurance. The Insurance Company will look at the specifics concerning the condition. For example, if a person had a stroke how long ago was it? Or if they had cancer. What type of cancer was it? Also, has the individual been cancer free for some years? The answers may determine that the individual is eligible for a modified policy. Or, what some companies call rated life insurance.
Do You Need to Tell the Life Insurance Company You have a Pre-Existing Condition?
Some individuals have health conditions that may be hard to diagnose. They may feel that they can get away without telling their Insurance provider about this. In some cases, these insurance providers want some type of medical performed. Before they will issue life insurance. It may be blood and urine tests. Or it could be a medical examination. Some insurance shoppers know that their condition may not show with these types of tests. Then they decide to keep this hidden from the Insurance Company. It is a big mistake to do this.
Upon the death of the individual, the company may look into the claim carefully. They will look for indications that there was a pre-existing medical condition. At the time the policy was taken out. It could mean they won’t pay the claim. Also, it may even be possible if the cause of death was not as a result of the undisclosed medical condition. It means that an individual thought their loved ones were secure with insurance. But it turns out they are not.
Will You Be Disqualified if You Have a Pre-Existing Condition?
If you have a pre-existing condition and you did not disclose it, you could be disqualified. For your life insurance policy. Most companies will require the insurance shopper to fill out a health questionnaire. There will be some very specific questions on this about pre-existing conditions. If the information is excluded or there are false answers, then it could invalidate the policy. As such the applicant would be disqualified.
No Medical Life Insurance in Canada
It is quite common to see marketing material that says no medical life insurance. Sometimes people get confused about this. They assume that no matter what their pre-existing condition is it won’t matter. Based on there being no medical. There will likely be a very extensive health questionnaire. One that they will have to be filled out. It will ask pertinent health questions. It will mean that pre-existing conditions will have to be disclosed. Based on the information provided insurance could be denied. Even though there was no formal medical exam or tests required. Or another possibility may be that life insurance will be given. But the policy will be modified with specific terms.
Buying the Right Type of Life Insurance
Any insurance no matter what type is an important purchase. The insurance shopper should go about buying life insurance carefully. All insurance companies are not the same. Nor is the way they view pre-existing medical conditions. It is possible to get Life insurance with many pre-existing medical conditions. However, there will be specific terms attached to it. The insurance shopper needs to decide if the coverage outweighs the cost and the terms.