Many people that are in poor health assume they are not eligible for life insurance. This becomes even more stressful for them. They become concerned about their loved ones. If they will not be able to assist them financially. This can be depressing for the individual with poor health.
Many insurance companies have now loosened up their restrictions on the health criteria. There are so many individuals that have pre-existing health conditions. But these are not life-threatening, and mostly affect the individual’s quality of life. Insurance companies worry about the risks that they are going to be at. In the past, any pre-existing condition created a risk for them. With these types of conditions being so common it had a dramatic effect on the target market. For the insurance companies. This is one of the reasons that has lead them to rethink their stance on individuals with poor health.
No Medical Questions Asked
Many individuals with poor health are interested in life insurance with no medical questions. They are assuming that no matter what their health condition is it will not get revealed. Based on this they should be able to get any insurance that they want. There are a lot of restrictions that come with these types of insurance offerings. Quite often they are not applicable to all the different types of insurance that is available.
What Are The Restrictions?
Some are looking at the no medical exam insurance. Those who not able to qualify for traditional insurance will be the ones interested in this.
Normally what this means can vary. In some cases, the insurance company may say there is not going to be any need for a medical exam. It doesn’t mean that there will not be any medical questions asked on the questionnaire. So it is important for the insurance shopper to discern between the two.
Some insurance companies have questionnaires with medical questions. It means that most likely there are some insurance restrictions. These restrictions can vary.
There can be restrictions on the type of insurance that is being offered among the common types. Or, there could be a restriction on the amount of insurance coverage that gets provided. There may also be restrictions on discounts for the premiums. For example, some insurance companies offer preferred insurance rates. This is usually applicable to those that are in good health. Those who have had positive metrics in all the other categories.
Permanent Life Insurance
Those that are in poor health may be able to qualify for permanent life insurance. This type of insurance is usually in place for those that have difficulties getting insurance. Which includes those with poor health.
There are those at that are offering guaranteed life insurance. In this case, there is no medical exam and no reason to rely on specific health questions. These are companies that will ensure those in poor health no matter to what degree it is. What they will consider is the age of the individuals. Also, their gender which gets considered for everyone. This is good news for many that are in poor health. What they have to realize is that in these cases the coverage is going to be very minimal. For example, one may be able to get maximum coverage of $25,000. What the big factor here is going to be is that for this amount the premiums should be quite reasonable. There may be options for these individuals to increase the amount of coverage. To do so if it is allowed is going to cost them a great deal more in their premiums.
There are some that have poor health conditions that range in severity. Some individuals can have conditions such as cancer. Or, a heart condition which puts them into a high-risk range. Again, it will depend on the insurance company. Plus, it will also depend on a particular company and how they view these illnesses. Age will also be a factor. Some individuals are below the age of 60. They may be able to find that they can get life insurance coverage that has a higher face value to it. There are some companies that will offer insurance for $75,000 that fit into these criteria.
Not every insurance company or every policy will keep the face value at a minimum. There will be some opportunities available for those in poor health. To get a higher amount of coverage. What has to be realized is that the cost is going to increase. According to the increase in the value of the insurance.
Knowing What You Are Getting
For those with ill health that are buying life insurance, they do need to get informed. There are some great opportunities with the no medical or no medical questions asked. There can be some catches. In many cases aside from the value of the insurance, there may be other restrictions. There most likely will be clauses added to the policy coverage. These have to be read and understood carefully. One that is quite common is that insurance companies will set a time limit. Before the policy gets activated in the case of death. They may stipulate that the policy will not get paid out for two years from the time of signing. This would mean that if the individual were to pass away within that two-year time, then their policy would not get paid out.
There could be other circumstances. Where the same criteria stand. Where there are no medical questions asked or medical exams required. But if the individual has a pre-existing condition, then they are not going to get coverage. This applies to those that are not offering the guaranteed insurance coverage.
What it means is that those that have ill health must get past the confusion. That which can come with buying life insurance. Often individuals are grateful. That they can get insurance, so they forget to look at the restrictions. Or, they neglect the responsibility of reading the fine print.