Alberta Life, Disability, and Health Insurance Since 1983

200, 5041 Gateway Blvd NW
Edmonton, AB T6H 4R7
VISTAPLAN BLOG

Read the Vistaplan Financial Group blog: Universal Life Insurance, Term Insurance, Disability Insurance, Critical Illness Insurance, Super Visa Insurance.

Posted: 1 Nov

Is Your Pre-Existing Health Condition a Roadblock to Getting a Life Insurance Policy?

Is Your Pre-Existing Health Condition a Roadblock to Getting a Life Insurance Policy?

When a life insurance policy holder passes away, the insurance company provides a death benefit, ensuring that the remaining loved ones are well taken care of. One of the common myths about life insurance policies is that sick people or those with pre-existing conditions are uninsurable. 

The truth, however, is that people with pre-existing conditions have life insurance options they can choose from, only that the monthly premiums may be a bit expensive. In the sections below, we have discussed all you need to know about getting a life insurance policy for people with a pre-existing health condition. To learn more, speak to a Vistaplan advisor.

Why Get a Life Insurance Policy

Before considering a life insurance policy, we must all accept that death is inevitable, and our passing may cause financial difficulty to those we leave behind. Therefore, if you want to assure some security to your loved ones after your demise, you should get life insurance coverage.

Having life insurance will secure the financial future of your loved ones by:

Replacing Your Income

Imagine you are the only source of income in your family, then suddenly you pass. Your loved ones will have a hard time coping with your death and the financial distress that comes along. By obtaining life insurance, you'll avoid abandoning your loved ones in a helpless financial situation after your demise. 

Paying for Funeral Expenses

Although pre-paying for your funeral is an option, most individuals don't plan that far in advance. With a life insurance policy, you can have all the funeral expenses taken care of by the insurer after your death.  

Assuring Protection

The main benefit of life insurance is that it serves as a safety net for your finance if you have dependents like family or business. The policy guarantees that your beneficiaries will continue to get an income after you pass away. Your loved ones or dependents will receive a cash benefit, usually a lump-sum payment upon your passing that will be delivered in full, provided you have paid all premiums and cleared outstanding loans.

Clearing Debts

There is often no assurance that your debt will be discharged after you pass away. A few examples of these debts include your mortgage obligations, credit card balances, auto or car loans, and personal loans. Having life insurance enables your beneficiaries to handle any outstanding financial obligations comfortably.

Life Insurance Options for People with Pre-Existing Health Conditions

Numerous health conditions may disqualify you from applying for life insurance. Others will give you a customized policy with very high premiums. Luckily, you can often find an insurance provider that will offer affordable rates for the coverage you need, depending on the nature of your medical issues. Here are some life insurance options for people with pre-existing health conditions. 

Term Insurance

Term-life insurance provides coverage for a predetermined length of time, often 10 to 30 years, during which your beneficiary will be paid out if you pass away. It is usually the most affordable insurance policy, even if you have a pre-existing health issue. However, not everyone can get beyond the underwriting process.

Your health significantly determines the cost of term life insurance; if you are eligible for term insurance, a pre-existing condition will considerably increase your rates. Nevertheless, compared to plans with restricted underwriting, term insurance allows you to select a significantly bigger death benefit.

Guaranteed Issue Life Insurance

This is a special type of life insurance you can purchase without having to get a medical examination or a health assessment. If a person with a severe illness cannot obtain regular life insurance, they are frequently advised to purchase this type of insurance. 

A guaranteed issue life insurance policy will cost you much more than traditional insurance policies because you can obtain one quickly and without having to answer any questions. Additionally, some regulations might prevent the insurer from disbursing the death benefit if you pass away within the first few years of acquiring the policy. Instead, the insurance company may restore the premiums to your family.

Group Life Insurance

Employers frequently provide group life insurance at a very reasonable premium. Your health-related issues will likely be ignored if you enroll through your employer's benefits. However, your death benefit will be modest, and the group life insurance is only good while employed there. 

Common Types of Pre-Existing Conditions

A pre-existing health condition is a medical issue you are diagnosed with before commencing your new life insurance. Insurance providers may refuse to provide coverage for specific people or raise their premium costs based on any pre-existing conditions. The most common pre-existing medical conditions include:

Diabetes

Diabetes is one of the common chronic conditions brought on by either insufficient insulin production by the pancreas or inefficient insulin utilization by the body. Insulin controls blood sugar levels. Uncontrolled diabetes frequently results in hyperglycemia, also known as high blood sugar. Over time, this can result in major health issues, including heart disease, eyesight loss, and kidney damage.

Asthma

Asthma can be a severe issue for some people while being a slight annoyance for others. If you are asthmatic, your airways may swell and narrow and create additional mucus. This may result in shortness of breath, difficulty breathing, coughing, and wheezing when you exhale.

Anxiety

Anxiety disorders fall within the category of mental health issues. People with anxiety disorder find it hard to get through the day. Signs include sweating, feeling nervous, panic attacks, and rapid heartbeat. Available treatments are behavioral therapy and medications.

Cancer

Cancer is any of the several illnesses characterized by the growth of abnormal cells that divide out of control and have the capacity to invade and damage healthy tissue. Cancer can frequently spread throughout the body. In the world, cancer ranks second in terms of fatalities. 

Other pre-existing medical conditions include HIV, high blood pressure, mental health, extreme obesity, atherosclerosis, sleep apnea, heart disease, and high cholesterol.

How to Choose a Life Insurance Company if You have a Pre-Existing Health Condition

To begin with, inquire with your employer if the company provides group life insurance benefits. The coverage might only be worth one or two times your monthly pay, but acceptance is certain. If this option is available, it will probably be your cost-effective choice.

When buying the insurance as an individual, use an experienced and trusted life insurance advisor or agent. This is because they are familiar with the underwriting requirements for each condition. They will also contact the insurance company on your behalf to inquire about the insurer's strategy to cover a particular condition. For your agent to represent you effectively, ensure you are open and honest about your medical condition.

Get Insured Today

The goal of a life insurance policy is to ensure the financial stability of your loved ones following your death. Would there be enough cash/resources to cover all expenses, from an outstanding mortgage to school tuition? Will your family have to leave their current residence? If you've ever pondered any of these issues, it may be time to acquire a life insurance policy, whether or not you have a pre-existing condition. For more information, speak to a Vistaplan advisor today.

REQUEST YOUR INSURANCE QUOTE

About the Author - David Motkoski

David Motkoski—At the Helm of Vistaplan Financial Group

David is a well-respected insurance advisor with over 30 years of experience helping healthcare professionals, business owners, and their families secure their financial futures. He takes the time to make certain his clients understand the life, disability, and health insurance products they are purchasing, so they can make the right choices for their budgets, plans, and futures. CONNECT WITH ME ON LINKEDIN

Life & Disability Insurance for Alberta Health Care Professionals, Business Owners, and Their Families Since 1983