It’s a frustrating moment in life when you have a plan and that doesn’t work out for reasons out of your control. If that plan was to buy life insurance, it could leave your family in a vulnerable situation. As an advisor for the past decade, this is a situation that has come up many times. The good news is that more times than not, there is a solution to help you.
You may fall into the “impaired risk market,” which means you have something in your background that makes you a higher risk for dying prematurely—things like diabetes, obesity, mental illness, family history, or even a driving under the influence charge can put you in a “higher risk” category.
The good news is that you can still get coverage, even if you have been denied in the past. Talking to a broker who works with multiple companies is the easiest way to accomplish this. A broker knows the “ins” and “outs” for each company and what you may qualify for.
Each company has its own individual guidelines they follow. When it comes to diabetes for an example, many companies deny coverage immediately, some companies will “rate” your coverage (which means higher premium) and some will offer a standard rate based on additional medical questions related to the diabetes. There are a handful of companies that offer coverage without a height and weight question on the application. So if that was a reason you were denied or haven’t wanted to apply for coverage, you no longer need to worry.
Insurance companies have instant access to your medical files, so they know ahead of time if you have underlying health concerns. This provides you with coverage in a faster more efficient way. In many cases you will be approved within minutes of completing the application. You can now apply for coverage up to one million dollars without a physical medical being completed. If additional information is required, the insurance companies will reach out directly to your doctor. If not enough information is provided at that point, then a medical may be necessary.
One last thing you should be concerned about is if minimal questions were asked during the application process. Many banks or credit cards offer this type of coverage. Most of these type of policies consist of “post claim underwriting”. Which means when you make the claim, is when they investigate your medical history to see if you should have qualified in the first place. These type of policies are the horror stories you hear about when someone doesn’t get paid their claim. Talking to a professional that understands insurance is the best way to prevent this from happening to you.
To summarize, talking to an insurance professional who works with multiple companies is your best way of protecting yourself and finding the best product for you, regardless of your past medical history.
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