It is not uncommon for people with common ailments or pre-existing medical conditions to get life insurance. Indeed, there are certain regulations associated with it, but it is possible. The Centers for Medicare and Medicaid Services (CMS) asserts that almost half of all adults even below the age of 65 have a pre-existing medical condition. This means that this is a significant chunk of the population which can under no cost be denied life insurance asserts William Schantz.
What Are Pre-Existing Medical Conditions (Per Schantz)?
Any ailment, disorder, disease or injury that an individual has before they get a healthcare or insurance plan is known as a pre-existing medical condition. These can range from disabilities to common ailments like asthma and diabetes. However, any disease can fall under the ambit of pre-existing medical conditions including respiratory, coronary, nervous disorders or even an HIV infection. There are certain life insurance plans available for each.
William Schantz Explains Impact of Medical Conditions on Policy Costs
Insurance companies also have to account for business risks as Schantz puts it. This obviously means that the price of getting life insurance with pre-existing medical conditions is relatively higher. With age and health being the two most significant determining factors in ascertaining the cost of life insurance, individuals can expect to pay more in terms of premiums.
The exact rates can vary between insurers but the general rule of thumb supports the fact that riskier people get higher rates. Generally, insurance rates for people with pre-existing medical conditions rise by 8 to 10% every year. Again, this is not a hard and fast rule though.
The Application Process Described by Schantz
There will be an application and underwriting process when you apply for the term or permanent insurance with a high death benefit. If you apply for modest final expense benefits, the process is more lenient. The insurer compiles your information, assesses your age, health (through a medical exam), and other risk factors, compares them against the length and amount of coverage you desire, and then determines whether or not you are insurable – and the associated costs.
Factors to Improve Insurability with a Pre-Existing Medical Condition
There are certain actions that, based on Schantz analysis, help people with pre-existing medical conditions, get better rates and find viable insurance plans. Following the prescribed treatment plan, exercising on a regular basis, working on losing weight and avoiding obesity are just some of these conditions. These activities help restore the confidence of insurers that a person carries less risk in the future.
People who are suffering from common ailments usually shy away from applying for life insurance. They fear higher costs and unaffordability. However, as William Schantz notes this couldn’t be further from the truth. Life insurance policies are a long-term investment which provides extensive benefits for individuals especially those who want it to help with their treatment. It is an amazing resource to have and people should consider it for a better future.