Twin City Underwriters

How Can Preexisting Conditions Affect Life Insurance Approval?

May 11, 2022 | John Demko

In What Ways Can Preexisting Conditions Affect my Approval for a Life Insurance Policy?

Insurance companies look at two major factors when underwriting a life insurance policy: age and health. These two things will determine whether you are insurable. The older you are in age, the more likely you are to have preexisting conditions.

Preexisting conditions are health problems or diagnoses you had before applying for life insurance. If you have a preexisting condition, there is a higher probability that the insurance company will end up paying out on a death benefit.

 

What Are Preexisting Conditions?

There are many different types of preexisting conditions. Below is a list of various health conditions that may be taken into consideration when apply for life insurance. (This list is not all-encompassing, and other preexisting conditions may be considered when issuing a policy.)

 

  • Asthma
  • Cancer
  • Depression
  • Diabetes
  • Epilepsy
  • High Blood Pressure
  • High Cholesterol
  • HIV/AIDS
  • Cardiovascular Disease
  • Obesity

 

So what if you are someone who has a diagnosis such as those listed above? What does the approval process look like for you? Depending on the insurance company, the process may look different.

 

Here are some of the ways in which you can still be approved for coverage:

Rating

All insureds are assigned a rate class, which can be based on gender, age, height, weight, BMI (Body Mass Index) and tobacco use. Common rate classes may be identified as “Super Preferred, Preferred, Standard, Sub-Standard, Tobacco.”

With each rate class there is a set premium. If you are more of a “risk” they may change your rate class to allow for more premiums due.

Underwriting

With every rate class there is a certain set of underwriting requirements to be completed in order for the insured to be approved. If you have a preexisting condition, further underwriting requirements may be requested.

Base Amount/Death Benefit

The base amount or the death benefit in which you are approved for may be adjusted based on your rate class or the underwriting findings.

 

Navigating your options for life insurance coverage can be difficult, especially if you have a preexisting condition. Working with an experienced life insurance broker can offer you peace of mind knowing that you have someone working for you to ensure your needs are met. Contact Twin City Underwriters to set up a one-on-one meeting today.