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Step 1
Find guaranteed issue policies that give full coverage after 2 years. Many of the policies don't guarantee full coverage immediately. This stops sales representatives from prospecting the corridors of hospitals and emergency rooms. Instead, they offer modified versions of traditional life insurance coverage.
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Step 2
Expect to pay more for an individual policy that doesn't require you to answer any medical questions. The companies that supply these types of policies understand their client base normally has a medical condition or would purchase the policy elsewhere. They price the product accordingly.
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Step 3
Sign up through work. Often you have an opportunity when you first select benefits or renew those benefits each year to choose additional life insurance. If you select a lower amount, there are normally no health questions. If you get life insurance at any other time, you have to answer health questions.
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Step 4
Answer medical questions if you're in good health. Many companies offer policies that don't require physicals but have short medical questionnaires. The cost for the insurance is much lower, and you can purchase higher benefits. Most companies don't require a physical for lower amounts of insurance. If you have some health issues, but not ones that are immediately life threatening, you're better off attempting to get traditional life insurance, which includes medical questions. The price may be higher than it is for someone in good health but still lower than the guaranteed issue.
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Step 5
Be aware of the benefits. There are several different types of guaranteed issue life products. Some may only give the premium back with interest if the insured dies within the first 2 years. Other policies give a graded benefit that increases each month until it's the full benefit, again normally within 2 years. Often the interest given on these policies is relatively high and more than you could make if you put it into a fixed guaranteed investment like a CD. This makes it a good investment for those in ill health.
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Step 6
See if your credit cards offer smaller policies without a medical examination. Some loans and credit cards offer credit insurance that doesn't require you to answer any health questions. This is a great place to increase your insurance coverage even though the price might be a little salty. The benefits match the balance on the account when attached to a fixed loan. Just like the loan, the face amount reduces. Insurance on credit cards base the amount of insurance on the debt you carry, and the premium varies according to coverage.
