The short answer is yes, it is possible to get life Insurance however it is definitely harder to get it with a pre-existing condition.
The way Life Insurance works is you buy a policy that covers you for a certain amount of time. If you follow the terms & conditions of that policy, your family will be paid out a monthly or in a lump sum in the event of your death.
How They Work Out The Cost Of Life Insurance
The amount your family will be paid is the amount you signed up to cover . The premium will be determined by the underwriting department in the Insurance company. Underwriters are the guys who do the maths on every person looking to take out an insurance policy. They weigh up the risks (chances of pay out) and take the following into consideration – your occupation, your health, your age & family history. If your job or hobbies are perceived as dangerous your premium will be more expensive. Similarly if you have a pre-existing illness or condition your chances of dying are higher, so again your premium will be higher.
How To Get Life Insurance With A Pre-Existing Condition
While it’s not impossible to get life insurance with a pre-existing condition, it does complicate things somewhat. And while many conditions may not affect your premium too much, there are a few conditions that do. The date of diagnosis is also vital. If it’s a recent diagnosis, the insurer is quite likely to sit on the fence and take a wait and see approach. Once the insurer knows for example how your treatment is going, they’ll give you your quote. They will also most likely write to your GP and maybe request a medical. Make sure you have plenty of information relating to your condition, including treatment /dates of diagnosis etc. This way, you’ll have all the answers that providers may ask for.
Find a good Broker
Navigating life insurance policies is difficult enough but add in a pre-existing condition and it becomes even more complex. That’s why finding a good broker is the and effective method of getting the most-competitive rates possible.
A broker will get information from a selection of companies, delivering the details to you so you can decide which policy works for you. A good broker will also know which insurer will be most sympathetic to your pre-existing condition. This gives you a great chance of getting affordable cover with the least amount of hassle.
Don’t Lie
Although it may be tempting to lie about a pre-existing condition to get a lower premium, there are no guarantees when it comes time to cash out the policy. You should disclose all the necessary information to your broker and Life Insurance company.
The ball is in your court…
If you have a pre-existing condition and are concerned that it may affect your cover, schedule a consultation with one of our life cover brokers today.
Rob O’Neill QFA