Things To Know If Need Life Insurance And Have A Preexisting Condition. If you have diabetes or another common pre-existing condition and have tried shopping for life insurance (or any insurance), you know it can be problematic. After the third agent assures you it will be “no problem” and you get declined and/or the agent won’t return your calls, you start to realize that there is definitely a problem. They key is understanding what the “problem” is. That is what I am going to try and shed light on here.
Understanding Life Insurance With A Preexisting Condition
Work with an agent familiar with underwriting and your condition. Sad to say, most agents just don’t know what to do, say or ask to help you navigate the waters. They take an application, smile, submit it, and hope for the best. That is not the best way to approach your efforts to protect those most dear to you.
You need to find and agent who not only understands your condition, but one who knows what underwriters are going to ask, look for, and base their decisions on.
To pee or not to pee…That is the question (A medical exam is not always a great idea). Many agents automatically knee jerk and think that a medical exam will always result in the best offer. Not so! There are times that a medical exam will actually result in higher premiums or even keep you from getting coverage at all! High A1C readings, diabetic complications, current age, product availability, current coverage in place, and smoking issues are all factors that need to be considered before you allow the nurse to take blood and urine. Sometimes products called “Simplified Issue” are a best first step. These products are underwritten using a pre-determined formula that might make it easier for you to get a life policy in place.
If you are healthy or have conditions that are well controlled with a documented treatment regimen, then taking a medical exam may very well result in better rates.
Are you working with an Agent or a Broker? Many people don’t know the difference but it is hugely important. An Agent works for an Insurance Company and must represent their products. A Broker can represent whomever they wish and work for YOU. That means that they can look through the universe of options and truly find one that represents the best deal you can get. What preexisting conditions carriers will underwrite varies widely from one company to the next. Some take diabetics, others don’t. Insulin is a decline with many while control is the governing factor with others. How complications and other conditions are treated add another layer to the confusion.
Having a Broker who knows where to submit your application is very important.
It may take a step or two to complete. Don’t be upset if it takes a step (or two) to get your program in place. Sometimes health conditions and circumstances require an incremental approach. This is normal.