How to Get Life Insurance if You Have Medical Problems

Even if you're not in the best of health, life insurance coverage at a reasonable cost is possible.

Difficulty: Moderate

Instructions

Things You'll Need:

• Term Life Insurance
• Whole Life Insurance
• Life Insurance

Getting Ready to Apply

1. Write down the names, addresses, and phone numbers of all the medical professionals, agencies, clinics, and hospitals you have used in the last 10 years.

2. Make a list of the medications you currently take. Be specific about the exact amount and frequency of dosage (for example: Donalax, 30mg, three times daily).

3. Recall the approximate dates of any major adult life events affecting your health and write them down, earliest first.

4. Disregard accidents from which you fully recovered; they are not considered in underwriting.

5. Summarize all positive aspects about your health condition, such as "never smoked," "quit smoking in 1974," "take walks three times a week," etc.

6. Organize all this information in a folder and make at least one photocopy.

Applying for Coverage

7. Use your own insurance agent, or seek an insurance professional with experience in placing "impaired-risk" cases.

8. Make at least two formal applications for insurance to companies that are known to be aggressive underwriters.

9. Apply for the amount of death benefit that your beneficiary(ies) actually need, according to your calculations and the advice you have gotten from trusted financial professionals.

10. Agree to take whatever medical tests and exams are required (they will be paid for by the insurance company) as soon as possible after you finish filling out the application forms.

Considering the Offers

11. Direct your agent to provide written documentation of any and all coverage offers that result from your applications.

12. Request a letter of explanation from any company that rates or declines you.

13. Choose the offer that gives you the most insurance coverage and policy guarantees for the least cost.

14. Regardless of the offers, have the insurance company send the results of all exams, tests, and lab work to your doctor for your files.

Tips & Warnings

• All offers, even declines, may be negotiable, especially if large sums of money are involved.
• If appropriate to your situation, two people can be insured under the same policy if one of those persons is uninsurable.
• Single-premium life policies require less demanding medical qualification.
• Although its insurance features are very limited, an annuity might provide some protection of assets if you can't medically qualify for a life policy.
• Avoid offers from very poorly rated insurance companies unless you are desperate for the coverage and they are the only ones that will issue a policy.
• Underwriting impaired-risk cases takes longer than other types of applications.
• You may be asked to take additional medical tests or have more lab work done before a company will make an offer.
• You have the right to full disclosure from the insurance company for the reasons they rated or declined your application for insurance.
• You also have the right to receive the results of any and all medical exams performed during the course of underwriting.

[rcdrury]

on 11/24/2007 Good article, for the most part. However, I wholeheartedly disagree with being too forthcoming with health information not specifically requested. Granted, giving false, misleading, or materially incomplete information is fraudulent and may nullify coverage, it is the underwriter's responsibility to obtain and apply information. If one is truthful and complete in one's responses, the applicant has fulfilled his or her duties.

Keep in mind that, by law, all life insurance policies have a maximum of two years constestibility. That means that death benefits MUST be paid for any policy more than two years old at the time of the insured's death, regardless of the accuracy of the information used for underwriting. An applicant can commit absolute fraud, and if he or she survives for two years following policy issue, the full death benefit will be paid.

[dstack9781]

on 2/21/2007 I agree with almost every point but as an insurance professional, I always recommend that the prospect insured gives a check with the application as that "binds" the coverage while it is being undewritten. The worst that can happen is to take out an application, fail to make a "temporary" premium payment and drop dead in the meantime! Your family gets nothing. Pay 1 months premium with the application and the insurance company is on the hook for a settlement if the worst happens!