Can I Buy Life Insurance if I have a Pre-existing Condition?
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According to the Centers for Medicare and Medicaid Services (CMS), as many as half of all adults under the age of 65 have some form of a pre-existing medical condition. These chronic conditions range from asthma, to diabetes, to heart disease. Can you buy after such a diagnosis?
The fortunate answer for many people is: Yes. It may be possible to get life insurance with these and other pre-existing conditions, including HIV infection. But details matter, and each answer will depend on your specific health situation.
How medical conditions can affect the cost of life insurance
What to expect during the application process
Factors that can improve insurability for people with pre-existing conditions
How to buy life insurance if you have a pre-existing condition
Frequently asked questions
How medical conditions can affect the cost of life insurance
Unsurprisingly, age and health are the two most important factors life insurance companies use to determine whether a person is insurable, and at what cost. A younger, more physically fit person is less likely to die in a given time frame – be it months, years or decades – compared to an older, less healthy person. That’s not just common sense: It’s a fact proven by actuarial science, the discipline that applies mathematical and statistical methods to assess risk in insurance and other industries.
Of course, other factors such as lifestyle and gender also affect your rates. Risky habits and dangerous hobbies (e.g., smoking, scuba diving) can make life insurance more costly. Conversely, women tend to live longer, so they enjoy generally lower rates.
These classifications vary somewhat by insurer, but it’s important to remember that no life insurance company expects every prospective customer be in peak health. Various types of policies such as term life insurance are issued every day for people with health conditions. Some of the more common examples include:
Obesity
High cholesterol
High blood pressure
Anxiety
Heart disease
This is by no means an exhaustive list of all the medical conditions that can affect your ability to get life insurance, so talk with a financial professional if you have questions about your health. You may even be surprised to learn that your specific condition isn’t much of a barrier at all. Don’t delay : On average, life insurance rates (premiums) for people with pre-existing conditions increase by 8-10 percent per year (but like all rules, there is one exception to this – read on).
What to expect during the application process
When you apply for term or permanent insurance with a substantial death benefit (as opposed to a modest “final expenses” policy) there will be an application and underwriting process : The insurer gathers your information, evaluates your age, health (with a medical exam) and other risk factors, weighs them against the length and amount of coverage you want, then decides if you are insurable – and at what cost. These are the basic steps:
1. Get a quote
There are a number of online quoting tools that can give you a quick cost assessment, and these can be especially helpful for people with simple coverage needs who are looking for term coverage. However, if you have a medical condition the initial quotes may not reflect your actual life insurance premium or cost. It may be a good idea to speak with a broker or agent about your situation. Guardian can put you in touch with a financial professional who can help you get a quote and guide you to the solutions best suited to your needs.
2. Collect documents
Like any other process, you’ll need to provide certain basic facts about yourself, so make sure to have the following items handy:
Driver’s license, passport, birth certificate or other proof of identity
Pay stubs, employment letter, tax return or other proof of income
Signed lease, property tax statement, utility bill or other proof of residency
3. Complete the application form
There will be a paper or online form that asks for more detailed information than provided when you first got your quote, and there may be questions about hobbies or other activities that could present a risk to your health. You’ll also be asked to give the insurance company permission to access medical and financial records to verify your information, such as an Attending Physician Statement from your doctor. After the form is completed there may be a follow-up phone call from the insurance company to check that your details are correct and get answers to any subsequent questions.
4. Get a medical exam
An appointment will be set up with a nurse or paramedical examiner, who can usually meet you at your home or office. The exam takes about 30 minutes, and the examiner will check your height, weight, and blood pressure, draw blood, and possibly ask for a urine sample. Depending on your preexisting condition, you may also be asked to undergo added testing during this visit.
At this point, all the information gathered will be given to an underwriter at the insurance company, who will evaluate all your risk factors, assign a rate classification, and calculate your final premiums.
5. Sign your policy and start paying premiums
The insurance company will send the finalized policy to you. It’s a paper contract that outlines all the terms and conditions of your policy including coverage amount, premiums, method of payment, riders, exclusions, and so on. Read it carefully. When you are satisfied that you understand your policy and agree to the terms, sign two copies and mail one back to the insurer. Keep your copy in a safe place – and let your beneficiaries know where it is.
Factors that can improve insurability for people with pre-existing conditions
Remember: just because you have a pre-existing condition doesn’t mean you can’t get life insurance. In fact, there are also a few things you can do to potentially increase your chances of qualifying with a pre-existing medical condition – and even lower your rate.
1. Follow your treatment plan
The better controlled your medical condition, the less risk to a potential insurer. So whatever your issue, go to the right doctor or specialist, get a treatment plan – and follow it as best you can. That will help increase your chances of maintaining and improving your health, insurability – and even quality of life.
2. Exercise regularly
The benefits of exercise to your health and overall wellbeing are well documented. Exercise also tends to help mitigate most of the factors that make a person risky to insure. One caveat: check with your doctor before starting an exercise regimen, especially after a serious health event. But even if you can’t do strenuous exercise, simple activities like walking can provide significant benefits.
3. Lose weight
Losing weight seems hard, but it is possible to do. And it's vitally important, because excess weight can affect your health, wellbeing, and life expectancy in so many ways. Take steps to modify your eating and increase your activity until you find a way to lose a little bit every week without feeling completely deprived – even if it's just half a pound. Over time you may be able to achieve your weight loss goal.
How to buy life insurance if you have a pre-existing condition
The first place to start is at work . Check with your employer to see if they offer a group life insurance benefit. The coverage may be limited to one or two times your salary, but acceptance could be automatic. If available, guaranteed issue life insurance through work could be your most cost-effective option. If you aren't already taking advantage of workplace life insurance, you should do so at the earliest possible opportunity – likely your next open enrollment period.
If you're buying as an individual, use an agent or broker, since they will be familiar with the underwriting standards for each condition and can check in advance with the insurer to find out the company's approach to covering a given condition. If you don't know an agent, Guardian can put you in touch with a financial professional who can help you.
Make sure to speak frankly with your agent and give them insight into your medical history and condition, so that they can advocate on your behalf. And be sure to talk about the steps you are taking to effectively manage your condition, so that the insurance company can take this into account.
One last note of caution: don't try to hide a current medical condition from your agent or the insurance company. If discovered, it could result in cancellation of the policy, as well as any death benefit that might have gone to your family. It might even be prosecuted as insurance fraud.