Life insurance provides immense benefits to the family of the person holding the insurance rather than himself. Before applying for it, be prepared to learn how you may have to pay more for life insurance than your peers. Any health conditions that you may have can affect the rates you will have to pay and if they may be severe then you may not receive any coverage at all.
The Affordable Healthcare Act has brought benefitting change that prohibits health insurance providers from denying coverage based on pre-existing health conditions. However, the same change has not been implemented to protect life insurance applicants. Life insurance providers check a candidate’s medical record and current health status to check for the presence of any health conditions or complications. This helps in determining what premiums to charge the applicant based on average life expectancy. Test your knowledge by taking a about life insurance policies regarding high-risk applicants with pre-existing conditions.
People who apply for life insurance are offered the most affordable rates if they do not face any health issues or pose a risk of dying early. For others with pre-existing conditions, insurers will charge them heavier premiums, which result in increased cost, overall. Sometimes, applicants that insurers feel are too risky to provide life insurance coverage to will be denied any coverage.
The reason why life insurance providers deeply inquire about pre-existing conditions is that their main concern is an applicant’s life expectancy. Knowledge about an applicant’s worrying health status or pre-existing conditions is what makes insurers reluctant from offering coverage. These facts don’t necessarily mean that those with pre-existing health issues will be denied coverage, but they do intend to warn candidates of the heavy premiums they will have to pay. These facts also highlight the importance of doing research about coverage policies and premiums before making a decision as to what provider to buy life insurance from. A well-thought-out decision will be a big investment since the benefits of life insurance are worth the cost. Take the quiz on the impact of pre-existing conditions on life insurance at HealthIQ.com.