Term Life Insurance Articles
Finding Cheap Term Life Insurance After A Serious Illness
2010-03-22
A serious illness in any family can mean extra bills, limited money on hand and stress for everyone involved, not simply the person who is ill. After recovering from a serious illness, many people find that their current term life insurance is not satisfactory, or realize the need to consider their term life insurance options in case the illness ever recurs, or they are struck again by something similar. However, with a history of illness and treatment behind them, it can be difficult to find a reasonable term life insurance quote. Here are a few tips on finding a well-priced term life policy after a serious illness.
The first is to shorten your term. The benefit of term life insurance is that it offers flexibility in length of coverage, making it the most affordable type of life insurance. The longer the term sought by the customer, the greater the chance the insurance company will have to pay out and therefore the greater the risk to them. For an insurance company, someone recovering from a serious illness represents a large risk, as if their condition was to present itself again, the company could be forced to almost immediately pay out. The price of a shorter term, which could then be re-negotiated or changed at the term's end, would be a far cheaper option in this case, as the company would seek to balance coverage with risk management.
The second option for obtaining a cheap term life insurance quote after a serious illness is to take it down to basics. Many companies will now offer critical or terminal illness add-ons for their policies, which will pay out in the event of a diagnosis, typically one that is listed within a schedule of conditions. This type of coverage pays out separately from a death benefit, and often means that an insurance company has to pay twice - once at the initial diagnosis, and once at death. It is worth noting that a payment made for a terminal illness that turns out not to be terminal can be clawed back. For someone recovering from a serious illness, this type of coverage would represent great risk, as the company would be very concerned about a relapse and multiple payments. The key here is to go for a simple, stripped-down policy, one that offers the insurance provider the best case scenario, while still making sure you are covered.
No matter the exact type of term life insurance you choose to pursue, make sure to shop around. Call companies and ask questions - be upfront about your illness and what it will mean for your quote. It may take some work, but a reasonable insurance rate can often be found.
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A serious illness in any family can mean extra bills, limited money on hand and stress for everyone involved, not simply the person who is ill. After recovering from a serious illness, many people find that their current term life insurance is not satisfactory, or realize the need to consider their term life insurance options in case the illness ever recurs, or they are struck again by something similar. However, with a history of illness and treatment behind them, it can be difficult to find a reasonable term life insurance quote. Here are a few tips on finding a well-priced term life policy after a serious illness.
The first is to shorten your term. The benefit of term life insurance is that it offers flexibility in length of coverage, making it the most affordable type of life insurance. The longer the term sought by the customer, the greater the chance the insurance company will have to pay out and therefore the greater the risk to them. For an insurance company, someone recovering from a serious illness represents a large risk, as if their condition was to present itself again, the company could be forced to almost immediately pay out. The price of a shorter term, which could then be re-negotiated or changed at the term's end, would be a far cheaper option in this case, as the company would seek to balance coverage with risk management.
The second option for obtaining a cheap term life insurance quote after a serious illness is to take it down to basics. Many companies will now offer critical or terminal illness add-ons for their policies, which will pay out in the event of a diagnosis, typically one that is listed within a schedule of conditions. This type of coverage pays out separately from a death benefit, and often means that an insurance company has to pay twice - once at the initial diagnosis, and once at death. It is worth noting that a payment made for a terminal illness that turns out not to be terminal can be clawed back. For someone recovering from a serious illness, this type of coverage would represent great risk, as the company would be very concerned about a relapse and multiple payments. The key here is to go for a simple, stripped-down policy, one that offers the insurance provider the best case scenario, while still making sure you are covered.
No matter the exact type of term life insurance you choose to pursue, make sure to shop around. Call companies and ask questions - be upfront about your illness and what it will mean for your quote. It may take some work, but a reasonable insurance rate can often be found.
