Life insurance is a mysterious topic for many people until they look into buying a policy. One of the main questions that come up relates to how your medical history affects your monthly rates on life insurance. People with pre-existing conditions still have options for getting coverage while individuals in good health tend to pay less.
Can your health affect your life insurance premiums?
Before buying a life insurance policy, it’s helpful to review your medical records to have a clear understanding of your current state of health. Your health is a major factor in setting monthly premiums, which can be measured in tests for blood, urine, blood pressure, and other physical details. Most life insurance firms require these tests for applicants. Nonetheless, even if you do not pass these exams, you still have options for access to life insurance coverage.
Effect of pre-existing conditions on life insurance
If you have a pre-existing condition, it usually means you will pay more for less coverage. You may be paying as much as 10 percent more per year if you have HIV, cancer, heart disease, or several other conditions that are considered high-risk. People with high blood pressure and high cholesterol also fit this category.
It’s often difficult for cancer patients to get life insurance even a decade after they’ve beaten it. Certain chronic illnesses, such as diabetes, often lead to life insurance providers denying coverage. One way sick people can still get coverage is if they make lifestyle adjustments. Obese individuals, for example, can enter a weight loss program and gain life insurance coverage.
Different types of life insurance policies you may consider buying
Once you understand the following types of life insurance, you’ll have a clearer picture of the type of plan you need. Here are your main options for coverage:
Guaranteed issue life insurance
This type of plan has the least number of barriers to qualify. It’s open to people of any age with any type of health issue, including terminal illness. It costs more than a term life plan, but it guarantees a death benefit pay-out.
Term life insurance
The lowest life insurance rates are usually found in term life plans, in which you have coverage for a set period of time. Some term life plans last up to 20 years. However, once the policy expires, no death benefit is paid to survivors.
Group term life insurance
Employers commonly offer group term life plans, which can be even more affordable than a personal term life plan. It can be part of an employee benefits package. No medical exam is usually required, making it easier to get access to benefits even with poor health conditions.
Permanent life insurance
Unlike a term life plan, a permanent life insurance plan lasts the lifetime of the policyholder, which explains why it costs more. Whole life insurance is a commonly sought permanent life insurance for affluent families. Not only does it pay a death benefit, but it also grows as a cash account that can be used for emergencies. Another type of permanent life insurance is universal life, which allows you to make premium and coverage adjustments.