Life insurance helps families of the deceased recover from the loss of a loved one. The financial assistance it provides can support the living expenses of those who are left behind.
Getting insured is a highly recommended practice that everyone should consider. However, getting insurance coverage when you are suffering or have suffered from a specific health condition may prove to be a big challenge. This so-called ‘pre-existing conditions’ will surely make it difficult to look for an insurance company that will grant you a policy.
What is a pre-existing condition
A pre-existing condition is a health problem that has been treated by a specialist before you apply for a health insurance. Usually, these conditions have an effect on your overall health, your ability to work, or even your mortality. Because of the increased risk involved, said conditions are often excluded in life insurance policies. Death caused by any of these exclusions will prevent your family from making a claim.
Here are the usual pre-existing conditions insurance companies exclude from coverage:
- Sleep apnea
- Stroke
- Weight issues
- Cancer
- Heart disease
- Diabetes
- High blood pressure
- Melanoma
- Kidney disease
- Blood disease
- Cardiovascular issues
The definition of a pre-existing condition varies per insurer. Some insurers stop treating a pre-existing condition as something that still persists when it has been successfully cured by a past operation. If there are no ongoing consultations or tests to monitor the recurrence of the condition, then the individual may be considered as someone who has fully recovered from said illness.
Certain insurance companies allow coverage on pre-existing conditions as long as the applicant has stopped visiting their doctor for a number of years or months to consult about the illness. Insurers see this as a sign that the individual has now a lower risk of making a claim due to said condition.
Still, some insurers consider a pre-existing condition as is, whether it has been treated or not. Even if you haven’t visited your doctor or had treatment for the said condition for the past 20 years or more, it will still be excluded from the insurance coverage.
Many Australians think that it’s impossible to get a life insurance when they have any of the pre-existing conditions listed above. It may be challenging but not impossible at all. You’ll just have to spend more effort in looking for an insurer since you’ll be considered by many as a high-risk individual.
Getting insured despite having a pre-existing condition
It’s always best to tell your insurer about any pre-existing medical condition you have. Aside from being a requirement in the application process, being honest with your insurer will help both parties come up with a solution to get you a better policy.
When applying for a life insurance, you have to disclose all the details about your health or any pre-existing condition you have. When we say all that means starting from the day you were born up to the day you apply for insurance coverage.
You’ll be giving your family a hard time in claiming the insurance in case you fail to disclose pre-existing conditions. You’ll be wasting a lot of resources on a policy that can’t be claimed because of your own error.
After assessing your situation, there are 4 ways the insurer may proceed with your application:
1) Declined.
In extreme cases, insurance companies will defer from giving approving your policy application when they ascertain that you’re a high-risk individual.
2) Exclusions will be applied.
Even if you haven’t consulted your doctor for years to check on your health condition, the insurer will still consider the possibility of its recurrence. They’ll still cover you, though, except when the cause for the claim is the excluded medical condition.
3) Accepted but with additional loading.
You’ll be paying extra to cover the pre-existing conditions you have. They may charge you with a bigger loading fee or a higher premium just to cover your pre-existing condition.
4) Accepted with full coverage.
The insurer believes you’ve fully recovered from the condition.
In some cases, you may have to undergo certain medical tests to confirm your condition. There are life insurance providers in Australia that don’t require a medical examination before you’re granted coverage. You can look for these kinds of insurer to avoid further complications.
As with all insurance policies, life insurance premiums will depend on your health risk level. The bigger the medical problems you have, the harder it is to get insured. And if you do get insured, you’ll be paying a higher premium than other people. The additional cost will depend on the pre-existing condition you have and how prone you are to making a claim based on said illnesses.
Points to remember when applying for a life insurance
Pre-existing conditions will usually limit the policy choices available to you. If you had cancer or another disease with similar gravity, you’ll find it difficult to obtain critical illness coverage.
Although it may be more challenging to find insurers who will grant you a policy, you shouldn’t grab the first one that you encounter. It’s highly recommended to still do due diligence and read the fine print to make sure you’re getting the best deal.
You can conduct a pre-assessment when shopping for a life insurance policy in Australia. It’s a way to determine what an insurer can offer, given your circumstances while maintaining your anonymity at the same time. To do this, simply fill out the company’s application form and attach all required health documents. Black out your name on all the documents and forms to make it anonymous and unbinding.
A special case in life insurance applications is finding an insurer that will accept a senior citizen with pre-existing conditions. Typically, insurance companies impose an age limit of 50, with some extending coverage up to those who are already 75 years old. There are only a few companies who offer this kind of policy.
Conclusion
Obtaining a life insurance policy can be difficult when you have a pre-existing condition that affects your risk level. Even though you’ve been completely treated for the said condition, insurers may still have doubts about your overall health status. This results in a higher chance of getting your application declined or having to pay a premium loading to cover the increased risk.
Pre-existing conditions are often excluded in life insurance policies, so make sure you read the fine print before you sign it. If getting a life insurance doesn’t work out as planned, an accidental death policy may be a good alternative.
There are many health conditions that can play a role in your life insurance rates, but there are 5 common factors that affect rates more than others:
- High Blood Pressure
- Obesity
- High Cholesterol
- Cancer
- Mental Health Conditions
How High Blood Pressure Affects Life Insurance Rates
One in three Americans has high blood pressure according to the CDC. This is approximately 75 million people.
So it’s really no surprise that life insurance companies have to mitigate the risk posed by this health condition.
Now, that said, of course, you can still get a policy even if you have this condition but you have to understand that having high blood pressure puts you at risk for a handful of other more serious conditions including stroke and heart disease.
For that reason having high blood pressure will increase your premiums. If you are working to effectively manage your high blood pressure by meeting with your doctor regularly and taking your medication it can have a positive influence on the premiums you pay.
Life Insurance Rates for People with High Blood Pressure
| 30 | 10 Year Term | $7 | $6 | $13 | $12 | $21 | $18 |
| 30 | 20 Year Term | $9 | $8 | $20 | $17 | $34 | $28 |
| 30 | 30 Year Term | $13 | $11 | $33 | $27 | $59 | $48 |
| 30 | Whole Life | $72 | $64 | $160 | $136 | $272 | $224 |
| 40 | 10 Year Term | $8 | $8 | $19 | $17 | $30 | $28 |
| 40 | 20 Year Term | $11 | $10 | $31 | $27 | $58 | $47 |
| 40 | 30 Year Term | $19 | $16 | $58 | $45 | $108 | $85 |
| 40 | Whole Life | $88 | $80 | $248 | $216 | $464 | $376 |
| 50 | 10 Year Term | $15 | $13 | $46 | $37 | $83 | $67 |
| 50 | 20 Year Term | $24 | $19 | $82 | $61 | $155 | $112 |
| 50 | 30 Year Term | $41 | $31 | $140 | $107 | $270 | $206 |
| 50 | Whole Life | $209 | $165 | $682 | $484 | $1287 | $902 |
| 60 | 10 Year Term | $32 | $25 | $122 | $83 | $226 | $151 |
| 60 | 20 Year Term | $60 | $41 | $235 | $158 | $456 | $304 |
| 60 | Whole Life | $384 | $300 | $1464 | $996 | $2712 | $1812 |
| 70 | 10 Year Term | $96 | $63 | $373 | $241 | $705 | $445 |
| 70 | 20 Year Term | $231 | $192 | $975 | $808 | $1912 | $1555 |
How Obesity Affects Life Insurance Rates
There is a common misconception that obesity means you will automatically be disqualified from life insurance. This is simply not true.
Obesity like these other conditions does put you at a greater risk for things like cancer, high blood pressure, stroke, or heart disease.
As a result, life insurance companies have to charge more to take on this risk.
You can still qualify for more affordable policies if your body mass index is not too far outside of the normal range and only just a little outside.
Life insurance companies assess the risk of an obese person by the severity of their condition, similar to other health conditions. The more severe the obesity levels, the more risk the person poses.
They also inquire about comorbid conditions too, the result of your obesity.
If, for example, you are obese and your obesity has caused high blood pressure too, then you are at even more of a risk.
A morbidly obese person might not be able to secure a term life insurance policy, but for such conditions where someone would otherwise be denied coverage, there is always the most expensive, guaranteed coverage option.
If you are an obese person you can lower your insurance costs by getting healthier. Showing that you are taking steps to eat better, improve your A1C levels regularly, and visit your doctor on a regular basis will indicate efforts to improve health and can earn you lower premiums if you wait to improve your health before taking out a policy.
If you have a term policy with obesity rates, you can get healthier and then apply for a new term or convert it into a permanent policy with lower premiums.
Life Insurance Rates for People With Obesity
| 30 | 10 Year Term | $10 | $8 | $17 | $15 | $28 | $24 |
| 30 | 20 Year Term | $10 | $9 | $26 | $21 | $47 | $37 |
| 30 | 30 Year Term | $14 | $12 | $41 | $34 | $75 | $60 |
| 30 | Whole Life | $80 | $72 | $208 | $168 | $376 | $296 |
| 40 | 10 Year Term | $11 | $10 | $27 | $23 | $44 | $38 |
| 40 | 20 Year Term | $14 | $12 | $40 | $34 | $74 | $62 |
| 40 | 30 Year Term | $22 | $18 | $69 | $54 | $129 | $101 |
| 40 | Whole Life | $112 | $96 | $320 | $272 | $592 | $496 |
| 50 | 10 Year Term | $19 | $16 | $59 | $47 | $104 | $85 |
| 50 | 20 Year Term | $28 | $21 | $98 | $72 | $186 | $135 |
| 50 | 30 Year Term | $47 | $37 | $181 | $128 | $347 | $239 |
| 50 | Whole Life | $242 | $198 | $858 | $616 | $1584 | $115 |
| 60 | 10 Year Term | $42 | $32 | $147 | $104 | $272 | $191 |
| 60 | 20 Year Term | $72 | $51 | $277 | $193 | $528 | $362 |
| 60 | Whole Life | $504 | $384 | $1764 | $1248 | $3264 | $2292 |
| 70 | 10 Year Term | $98 | $69 | $386 | $250 | $705 | $451 |
| 70 | 20 Year Term | $231 | $215 | $975 | $903 | $1912 | $1738 |
How High Cholesterol Affects Life Insurance Rates
High cholesterol is another common condition that impacts one out of every three adults in America.
Once again high cholesterol can lead to other conditions such as diabetes, stroke, or coronary heart disease.
The good news is that life insurance providers will look upon your high cholesterol more favorably if you are managing it with medication or working with your healthcare provider regularly.
It is important to get tested for this before you apply because it doesn’t show any conditions and you certainly don’t want to find out that you have high cholesterol when you go to apply for a policy.
The risk factors attributed to high cholesterol include your diet and your weight primarily. If you’re suffering from high cholesterol, you can take steps to reduce the cost of your insurance policy by removing things such as trans fats, saturated fat, sugar, and cholesterol from the foods you are eating.
You can also lose weight, as being overweight can increase your LDL levels and decrease your HDL levels.
Life Insurance Rates for People With High Cholesterol
| 30 | 10 Year Term | $7 | $6 | $13 | $12 | $21 | $18 |
| 30 | 20 Year Term | $9 | $8 | $20 | $17 | $34 | $28 |
| 30 | 30 Year Term | $13 | $11 | $33 | $27 | $59 | $48 |
| 30 | Whole Life | $72 | $64 | $160 | $136 | $272 | $224 |
| 40 | 10 Year Term | $8 | $8 | $19 | $17 | $30 | $28 |
| 40 | 20 Year Term | $11 | $10 | $31 | $27 | $58 | $47 |
| 40 | 30 Year Term | $19 | $16 | $58 | $45 | $108 | $85 |
| 40 | Whole Life | $88 | $80 | $248 | $216 | $464 | $376 |
| 50 | 10 Year Term | $15 | $13 | $46 | $37 | $83 | $67 |
| 50 | 20 Year Term | $24 | $19 | $82 | $61 | $155 | $112 |
| 50 | 30 Year Term | $41 | $31 | $140 | $107 | $270 | $206 |
| 50 | Whole Life | $209 | $165 | $682 | $484 | $1287 | $902 |
| 60 | 10 Year Term | $32 | $25 | $122 | $83 | $226 | $151 |
| 60 | 20 Year Term | $60 | $41 | $235 | $158 | $456 | $304 |
| 60 | Whole Life | $384 | $300 | $1464 | $996 | $2712 | $1812 |
| 70 | 10 Year Term | $96 | $63 | $373 | $241 | $705 | $445 |
| 70 | 20 Year Term | $231 | $192 | $975 | $808 | $1912 | $1555 |
How Cancer Affects Life Insurance Rates
Insurers assess people diagnosed with cancer or who have had a history of cancer by reviewing many factors.
They will ask a lot of questions on the application which specify the types of cancer, how recently you had issues with certain cancers, and what treatments are currently being used.
Your rates are going to change based on the type of cancer, as some are more severe than others. Prostate cancer, for example, has a much lower survival rate than breast cancer, which means your premiums are going to change with the type of cancer you have and the stage that it is in.
Life Insurance Rates for People With Cancer
| 30 | 10 Year Term | $7 | $6 | $13 | $12 | $20 | $18 |
| 30 | 20 Year Term | $9 | $8 | $20 | $17 | $33 | $28 |
| 30 | 30 Year Term | $12 | $11 | $32 | $27 | $57 | $ |
| 30 | Whole Life | $72 | $64 | $160 | $136 | $264 | $ |
| 40 | 10 Year Term | $8 | $7 | $18 | $15 | $28 | $25 |
| 40 | 20 Year Term | $10 | $10 | $28 | $24 | $51 | $43 |
| 40 | 30 Year Term | $17 | $15 | $52 | $42 | $99 | $78 |
| 40 | Whole Life | $80 | $80 | $224 | $192 | $408 | $344 |
| 50 | 10 Year Term | $14 | $12 | $41 | $33 | $74 | $61 |
| 50 | 20 Year Term | $22 | $18 | $74 | $55 | $141 | $101 |
| 50 | 30 Year Term | $36 | $28 | $125 | $97 | $251 | $183 |
| 50 | Whole Life | $198 | $143 | $627 | $451 | $1,166 | $847 |
| 60 | 10 Year Term | $28 | $23 | $112 | $75 | $213 | $139 |
| 60 | 20 Year Term | $53 | $36 | $205 | $139 | $396 | $267 |
| 60 | Whole Life | $336 | $276 | $1,344 | $900 | $2,556 | $1,668 |
| 70 | 10 Year Term | $87 | $58 | $322 | $200 | $610 | $373 |
| 70 | 20 Year Term | $207 | $157 | $804 | $578 | $1,546 | $1,117 |
How Mental Health Conditions Affect Life Insurance Rates
Life insurance companies assess people with mental health issues based on how severe those issues are, whether there are tangential conditions too, and whether you are controlling the conditions well or not.
Some more minor issues like depression or anxiety, even sleep apnea can be controlled with regular treatment and therefore will only result in slightly higher premiums.
However, for those more severe cases or those which are not well managed, it can be very challenging to get a policy. People in these situations may find it hard to get an insurance policy:
- Have dementia or Alzheimer’s
- Reside in a hospital or nursing home
- Have recently been rehabilitated for drug or alcohol use
Rest assured that if you have a pre-existing mental health condition such as depression you can still get a policy, but your premiums will be different.
Life Insurance Rates for People With Mental Health Conditions
| 30 | 10 Year Term | $10 | $9 | $26 | $22 | $46 | $39 |
| 30 | 20 Year Term | $13 | $12 | $39 | $33 | $70 | $60 |
| 30 | 30 Year Term | $21 | $17 | $68 | $52 | $128 | $96 |
| 30 | Whole Life | $104 | $96 | $312 | $264 | $560 | $480 |
| 40 | 10 Year Term | $13 | $12 | $39 | $34 | $70 | $61 |
| 40 | 20 Year Term | $19 | $16 | $65 | $54 | $125 | $101 |
| 40 | 30 Year Term | $33 | $25 | $116 | $86 | $217 | $162 |
| 40 | Whole Life | $152 | $128 | $520 | $432 | $1000 | $808 |
| 50 | 10 Year Term | $25 | $20 | $96 | $70 | $179 | $132 |
| 50 | 20 Year Term | $39 | $30 | $157 | $117 | $302 | $221 |
| 50 | 30 Year Term | $79 | $57 | $297 | $221 | $568 | $408 |
| 50 | Whole Life | $363 | $275 | $1353 | $1001 | $2552 | $1859 |
| 60 | 10 Year Term | $57 | $41 | $233 | $155 | $447 | $287 |
| 60 | 20 Year Term | $106 | $73 | $456 | $310 | $880 | $585 |
| 60 | Whole Life | $684 | $492 | $2796 | $1860 | $5364 | $3444 |
| 70 | 10 Year Term | $170 | $110 | $737 | $443 | $1366 | $832 |
| 70 | 20 Year Term | $466 | $381 | $1942 | $1583 | $3876 | $3046 |
Other Health Conditions That Affect Life Insurance Rates
As I said at the beginning of this article, there are many health conditions that can affect life insurance rates.
These are just the 5 most common health conditions that affect life insurance rates.
Some other common health conditions affecting life insurance rates are:
Respiratory Diseases
Respiratory diseases include things like:
- COPD
- Emphysema
- Chronic Bronchitis
- Bronchitis
- Fibrosis
- Hypoxia
- Asthma
- and more…
Naturally, these diseases shorten your life expectancy and therefore elevate your risk profile to a life insurance company. This is not to say that you cannot find affordable life insurance rates for people with respiratory diseases.
Depending on your condition, there may be plenty of life insurance options available to you. Because of the nature of your disease, it may be hard to give exact quotes for your rates. It is best to speak with an agent to ensure you find the best policies, rates, and companies for your needs.
Digestive System Diseases
Some common digestive diseases that affect life insurance rates are:
- Gastrointestinal disease
- Chrohn’s Disease
- IBS (Irritable Bowl Syndrome)
- Ulcerative Colitis
- Celiac Disease
- Diverticulitis
- and more…
Again, depending on your health condition and your age, life insurance rates, and policy options may vary. However, unless your condition is very bad, you are likely to find affordable life insurance rates for people with digestive system diseases.
Even if your condition is serious, guaranteed issue life insurance can cover your needs without the need for a medical examination, and with no health, questions asked. There are life insurance options for just about everyone, regardless of your health.
Muscular Diseases
Some common muscular diseases that can have an effect on your life insurance rates are:
- Myopathy
- Muscular Dystrophy
- Polymyositis
- Spinal Muscular Atrophy
- Amyotrophic Lateral Sclerosis
- Myotonia
- and more…
These diseases are already challenging enough to live with, there is no reason that getting life insurance to protect your family should be hard.
Because these diseases are so uncommon, and each individual case is different, giving realistic life insurance quotes for people with muscular diseases can be difficult, when generalizing. It is best to speak with a professional to find the best life insurance rates if you suffer from a muscular disease.
Lymphatic System Diseases
Some common lymphatic system diseases that can affect life insurance rates are:
- Granuloma
- Hodgkin Lymphoma
- Intraocular Lymphoma
- Lymphedema
- Mononucleosis
- Non-Hodgkin Lymphoma
- and more…
These diseases are particularly dangerous, as the lymph system spans the whole body, and they can be very difficult to detect or treat.
Again, people with these types of lymphatic system diseases should seek out professional help to find the best life insurance policies and rates.
Endocrine System Diseases
Some common endocrine system diseases that have an effect on life insurance rates are:
- Adrenal Disorders
- Grave’s Disease
- Hypoglycemia
- Hypothyroidism
- Hyperthyroidism
- Diabetes
- Turner Syndrome
Determining life insurance rates for people with endocrine system diseases depends on the disease and the severity of it. Life insurance rates for people with diabetes and thyroid disorders will be much lower and more standard than those with Turner Syndrome, Grave’s Disease, or other more serious endocrine system disorders.
Nervous System Diseases
Some of the common nervous system diseases that affect life insurance rates are:
- Parkinson’s Disease
- Multiple Sclerosis
- Dysautonomia
- Ataxia
- Neurotoxicity
- Degenerative Disease
- and more…
These diseases are usually quite severe in terms of how they affect your body, life expectancy, and health. As a result, giving life insurance rates for people with nervous system diseases is difficult without knowing their individual situation.
Finding the Best Life Insurance Rates for People With Health Conditions
There are thousands of health conditions in the world. While high blood pressure, obesity, high cholesterol, cancer, and mental health conditions are the most common, there are many others to consider.
Everyone should be entitled to the right to life insurance in order to protect their family and loved ones financially in the event of their death.
While it may seem like affordable life insurance may be hard to obtain for your specific health condition, I promise, this is not the case.
Give us a call today to speak with one of our independent life insurance agents who can compare life insurance rates from dozens of the best life insurance companies for people with health conditions.