Life Insurance With Preexisting Medical Conditions

by Steve Gregory
Life insurance can provide financial protection for your surviving family members in the event of your death.

Life insurance can provide financial protection for your surviving family members in the event of your death.

A preexisting medical condition can make it difficult to acquire life insurance, but not impossible. Some life insurance companies do provide coverage to individuals with preexisting conditions, but at a higher cost because it is considered riskier than providing coverage to healthy individuals.

Employer-Sponsored Plan

One way to obtain life insurance if you have a preexisting medical condition is to get it through your employer. Many companies have benefits packages that include group life insurance. Most group plans don't require a medical exam and ask no questions about your health. Contact your company's human resources department to sign up for the life insurance plan. Some companies require fulfillment of a minimum period of employment before employees become eligible for life insurance.

Guaranteed Issue

Another option is a guaranteed issue life insurance policy. This type of policy does not require a medical exam. However, the total value of a typical guaranteed issue policy is usually below $20,000. The value is low because these policies are created for a specific reason, such as to cover a specific debt. However, because guaranteed issue insurance does not require a medical exam, the premiums are usually high.

Rated Insurance

With a rated life insurance policy, the insurer uses your health information as one of the ways to calculate the risk of insuring you. If a company determines that the risk to insure you is higher than usual, it may offer you a rated policy. The premium for this type of policy is higher than that for other types of life insurance policies representing the same value. The rating is the additional price added to the premium. The higher premium is used by the life insurance company to cover the increased risk of insuring someone with a preexisting medical condition.

Other Group Plans

Check with any organizations of which you are a member to see if they offer group life insurance. Like group policies issued through your employer -- these plans may require no medical history. As with all group plans, the premiums are generally cheaper than those for individual life insurance policies of the same value. Depending on the regulations of the organization and/or the life insurance company, you may be able to keep the same coverage if you leave the organization.

About the Author

An avid technology enthusiast, Steve Gregory has been writing professionally since 2002. With more than 10 years of experience as a network administrator, Gregory holds an Information Management certificate from the University of Maryland and is pursuing MCSE certification. His work has appeared in numerous online publications, including Chron and GlobalPost.

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