How to Buy Life Insurance With a Pre-Existing Condition (2024)

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A pre-existing condition is a health issue you were treated for or diagnosed with before applying for life insurance.

Because each company has unique underwriting processes, some might be more flexible — or conversely more strict about certain conditions — than others. Some common pre-existing health conditions are:

As we’ve mentioned, having a pre-existing condition doesn’t automatically disqualify you from life insurance coverage. Here are some ways to potentially improve your chances of qualifying for coverage:

• Follow a treatment plan: If possible, work with a health practitioner to get a comprehensive treatment plan and follow it as best you can. If your pre-existing condition is either in remission or under control with medication, you are more likely to be looked at favorably during the underwriting process.
• Regular exercise: Having an active lifestyle factors into a longer life expectancy, lowering the risk for insurance companies. Activities like walking can improve your health and fitness if you have a pre-existing condition, along with improving your chances of obtaining life insurance.
• Overweight applicants: Obesity is a very common factor that leads to higher life insurance rates and coverage denials. Each insurance company has a height and weight chart that determines coverage rates and insurability. Underwriting standards become even more strict if an applicant is overweight and has a pre-existing condition like high blood pressure. However, losing weight can help you move into a lower weight class and improve your insurance rate.

We suggest enlisting the help of a licensed life insurance agent or broker who is familiar with underwriting standards for your specific pre-existing condition and intended policy.

Unless you apply for a no-exam life insurance policy, you’ll be required to undergo a medical exam, including bloodwork. The underwriting company will also review your previous medical records and prescription history. For these reasons, it’s unlikely that attempting to hide a pre-existing condition will prove successful.

Intentionally omitting health information may result in your application getting denied or possible death benefits not being paid to your beneficiaries. Knowingly providing false information on a life insurance application is also considered insurance fraud, which costs businesses and consumers nearly $75 billion per year.

Here are some companies that offer coverage to applicants with pre-existing conditions:

• Gerber Life: The company’s Guaranteed Life Plan is a no-exam, guaranteed issue policy with coverage amounts ranging from $5,000 to $25,000.
• Ethos: Simplified Issue (SI) is a plan designed for people with age or health issues who only have to answer a few medical questions, with no medical exam.
• Guardian Life: Qualified applicants living with HIV are eligible for policies ranging from a $25,000 minimum up to $2,000,000.

Generally, there are two main types of life insurance: permanent life insurance and term life insurance. Permanent life insurance, which includes whole life policies, might not be a realistic or affordable option for those with serious pre-existing conditions. This means you’re less likely to qualify for a plan that covers you for your entire life or features a cash value component. Whole life insurance premiums can be six times higher than term life insurance for healthy applicants — and that rate will be even higher for people with pre-existing conditions.

Term life insurance policies are more affordable options if you have your pre-existing conditions under control and qualify for coverage. Term life policies lock in coverage and rates for specified periods, typically 10 to 30 years. The majority of term policies are renewable, usually without having to undergo another medical exam. However, your premium will increase with your age, and the new term may be as short as one year.

Insurance companies generally issue life insurance quotes based on health status, which is further broken down into a series of rate classes based on risk factors. Though the names of rate classes can vary, typical classes include standard/regular, preferred or super preferred (for the healthiest and youngest applicants).

If you have a serious health condition and are a bit older, you may only qualify for regular or substandard rates based on a shorter life expectancy. If you are relatively young and have a milder health condition in remission or under control through a treatment plan, you might receive better rates.

So you’ve been denied coverage because of your pre-existing coverage. What now? You could still have options if your application is declined after going through the underwriting process:

• Group life insurance: Employers often offer group coverage for a lower premium than you would find otherwise. Group life insurance policies offered by employers generally do not take into account your health conditions. However, the cons of these plans include limited death benefits and that coverage is only active while you have that job. Some employers also offer supplemental life insurance for varying premium prices.
• No-exam life insurance: If an insurer denies you coverage due to medical or lifestyle factors, no-exam policies might be a viable alternative. No exam life insurance plans tend to have much higher rates than traditional plans but have become more affordable recently.
• Guaranteed issue (GI): This type of policy offers guaranteed coverage, with no medical exam and no health questions. These policies offer more limited coverage amounts, typically capped at about $25,000, and are often used by older people or people with several pre-existing conditions. TruStage is a nationwide insurance company that offers guaranteed-issue life insurance up to $25,000 in coverage without a medical exam, blood test or other health items required by some other insurers. GI plans may benefit older applicants or those who have been rejected for whole-life coverage in the past.
• Final expense: These plans, also known as burial insurance, are life insurance plans meant to cover end-of-life expenses. Final expense plans typically provide smaller benefits and can be beneficial for older people with serious health conditions who cannot qualify for traditional policies.
• Invest instead: If your age or health status disqualifies you from most affordable policies, consider investing the money you would otherwise spend on life insurance premiums. Think of this strategy as a savings account for your loved ones in the event of your death. We recommend consulting with a financial advisor to determine if this is the best option for you.

Having a pre-existing condition often limits your life insurance options, but it is still possible to obtain coverage. The specifics of your health condition, along with other factors like your age and lifestyle, will play a role in dictating your coverage possibilities.

Term life insurance might be a more realistic option than more costly permanent life insurance plans like whole and universal life. By consulting with an experienced life insurance professional, you can not only learn about possible options but also secure an advocate to help you qualify for coverage.

Learn more about Graham Ray

Learn more about Tori Addison