Everyone should at least consider applying for life insurance, even if the reasons for thinking about life insurance can be stressful.
If a family’s primary breadwinner passes away and he or she did not have a life insurance policy, those in the family left behind more than not face financial adversity. Life insurance policies are great ways to guarantee loved ones will be financially secure when the policyholder can no longer provide.
During the applications process for life insurance, the insurance company often reviews the applicant’s medical information in order to come to a decision regarding coverage.
Individuals with pre-existing health conditions often hold the belief that it is impossible for them to acquire life insurance and even if they succeed, the policy will cost them heavily. While it may seem unlikely, Claybrooke can find life insurance policies with competitive prices for those with pre-existing conditions.
Claybrooke has much experience helping clients with pre-existing conditions and can support this claim with years of experience in the field. We pride ourselves on providing our clients with sound advice and independence that allows for the best insurance decisions, even with the fact we work with many different insurance companies.
We have helped thousands of clients obtain competitive, affordable insurance policies in spite of any wide range of pre-existing conditions they may have including:
- Heart attacks
- Crohn’s disease
- Multiple Sclerosis
Claybrooke can arrange competitive cover for these conditions as well as many others.
What Makes Claybrooke Different?
Claybrooke is an independent specialist what it comes to life insurance and pre-existing conditions. We’ve gained an unparalleled amount of knowledge of the field through hard work and use it to give clients the best possible advice and life insurance policies for their money.
We have worked with many different insurance providers and are able to identify which companies are the most competitive in regards to different medical conditions–meaning our clients are getting the experience tailored to their particular needs.
How Much Will Insurance Cost for Pre-Existing Conditions?
Our clients with pre-existing conditions, after speaking with one of our staff, will be able to identify how Claybrooke can help them secure life insurance and a relative figure as to how much a policy will cost including cover for their specific health condition.
If one or more of the choices presented to clients interests them, works for their lifestyle and budget, our team can help them with the process of applying for coverage through the suitable insurance company, based on their specific condition and situation.
How Insurance Providers Calculate Cost for Pre-Existing Conditions
Each insurance company has its own way of figuring the cost of insurance coverage for clients with pre-existing conditions, but often the provider hires a medical underwriter to help evaluate the answers policy seekers give on his or her application. The underwriter then decides if there are enough details to determine a quote for a policy or if the client has to contact his or her general practitioner or specialist for more information.
Once clients have provided all of the required information, the underwriter can then conclude how much the monthly premium should be for the policy the client wants. Many factors are considered when providers make this decision, and some of them include the following:
- How serious the client’s medical condition is
- How well the client manages his or her condition
- If there are any other medical conditions or concerns present
- The level of risk the insurance company will incur by insuring the client
- How many clients the company currently has with the same condition as the client
- The level of experience the company has with the medical condition help by the client
Much of the decision making process in regards to the cost of life insurance is connected to the individual’s medical information, the current state of his or her condition, and the specific insurance provider’s situation at the given time.
With that in mind, it can be easy to understand why individuals with pre-existing conditions usually seek the assistance of companies like Claybrooke to better locate quality life insurance from a seasoned provider that also comes with a competitive price.
There are many examples of how some insurance providers can offer competition with one medical condition in one instance and not in another one. Insurance Provider A may offer extremely competitive rates for clients with diabetes during one month or a number of months, but its prices change and become uncompetitive in later months.
This often happens when an insurance company feels exposed to enough risks when it comes to clients with diabetes and adjusts premiums to limit future applicants and exposure.
Possible Outcomes for Life Insurance Applications
After an applicant has applied for a particular product, the insurance company and the underwriter must do the required research in order to make a decision in regards to the applicant’s coverage. Once the process has completed, the insurance company contacts the applicant to relay its decision.
An applicant may receive many possible options based on the insurance company’s findings during the researching process. Some of the possible options an applicant will see regarding his or her policy include the following:
“Ordinary” Terms Offered — this means that the insurance provider offers the client a policy with “standard terms” or the same terms it would offer clients without pre-existing conditions and in typical health.
Some reasons why this option is presented include that the client has strong control over diabetes or high blood pressure.
“Loaded” Premiums Offered — this means that the insurance provider will provide coverage for the client, but will charge the client a higher premium to cover the added risk of him or her making a claim due to a medical condition. The “load” added to the monthly premium ranges from as low as 50 percent to as high as 1,000 percent.
Some circumstances where this option is presented include the following: (1) history of cancer, (2) after a heart attack, (3) multiple sclerosis, (4) diabetes, and (5) Crohn’s disease.
Postponed Coverage — this means upon evaluating the individual’s application, the insurance company is not willing to offer coverage at the current time, but may be willing to offer coverage at some point in the future.
Some circumstances where postponed decisions occur include: (1) applicants waiting for an operation or medical procedure, (2) applicants waiting for a new/updated diagnosis, and (3) applicants who are undergoing cancer treatments.
Declined Coverage — this means the insurance provider is unwilling to offer its applicant life insurance coverage based on the individual’s application, often because the company believes the risk to be too great.
Some reasons why insurance providers may decline coverage include applicants with terminal illnesses and ones with poorly controlled diabetes with additional complications.
How Different Conditions Affect Life Insurance Coverage
Insurance providers’ perspective is that different health conditions fall into various categories, which are meant to help influence its decision making regarding approval for a life insurance application for someone with a pre-existing condition.
Rather than putting conditions into columns or “buckets,” the Claybrooke team takes the time to analyze each applicant’s individual situation to help him or her discover the best potential insurance coverage at a competitive price.
Let’s outline how a range of different health conditions are divided and how they can affect the insurance provider’s final decision about coverage for an applicant:
Conditions Accepted at “Ordinary Rates” or with Little Loading
- Allergies (exception: severe allergies)
- Headaches (without underlying causes or additional medical testing)
- High blood pressure (controlled and stable with medication)
- High cholesterol
- Hysterectomy (depending on reason)
- Mild asthma (controlled with inhalers, not hospital treatments)
- Overweight (depending on provider’s acceptable height/weight ratio)
- Skin disorders
- Well controlled diabetes (conditions present a number of years, under good control with HBA1c figure of under 7)
Conditions Subject to Loading Premiums
- Angina (depending on level of control)
- Ankylosing spondylitis
- Atrial fibrillation
- Blood disorders
- Brain damage (wide range of loading–contact Claybrooke for more information)
- Brain hemorrhage
- Breast problems (cancer coverage may be available in remission after qualifying period)
- Brittle bone disease
- Cancer (available for most patients in remission after qualifying period)
- Cerebral palsy
- Crohn’s disease (ordinary rates or low loading for those in remission)
- Depression (ordinary rates may be available for mild depression)
- Diabetes (typical diabetes may secure policy with moderate loading)
- Eating disorders
- Family history
- Heart attacks (dependent on different factors)
- Heart disease
- Heart murmurs
- Irritable bowel syndrome
- Kidney disease
- Kidney transplant
- Liver disease
- Mental illness
- Multiple sclerosis (dependent on type and severity)
- Myocardial infarction
- Obesity (available if general health is well)
- Parkinson’s disease
- Sickle cell
- Tumors (see information regarding cancer)
- Ulcerative Colitis (see information on Crohn’s disease)
- Urinary tract disorders
- Vein artery problems
Conditions Subject to Postponed Coverage
- Alcohol abuse (dependent on timeline and severity)
- Cancer (postponed during remission period–length of postponement varies)
- Heart attacks (if attack was in last 12 months)
- Kidney disease
- Kidney transplant (may be available after operation recovery period)
Conditions Subject to Declined Coverage
- Terminal conditions
- Uncontrolled conditions
- Multi-condition situations (ex. obesity with diabetes, heart conditions)
Remember the information provided here is meant to be a guide to understand how various medical conditions are generally categorized by insurance providers and how these medical conditions can affect an individual’s life insurance application.
To best identify the details surrounding one’s situation and how much a particular insurance provider might cost, it is best to contact Claybrooke for an evaluation.