Term Life Insurance Articles
Finding A Term Life Insurance Quote With A Pre Existing Condition
2010-04-03
For many Americans, finding a term life insurance quote that suits their budget can be a difficult task. While term life insurance offers greater flexibility and cheaper rates than its sibling, whole life insurance, there is a host of factors that influence who is granted coverage and under what conditions. One of the largest factors that can impact a company's willingness to offer a term life insurance plan to a client is the presence of any pre-existing conditions. These can include a host of illnesses including cancer, stroke, and kidney or liver failure. In short, any condition which is present in the client before the agreement is signed and could affect the chances of the death benefit being paid out prematurely.
Almost every state in the Union has now enacted law that mandates that for insurance companies offering term life insurance, pre-existing conditions cannot be a reason to deny or reject coverage. Instead, companies are allowed to request what is often known as an MIB, or Medical Information Bureau report, which contains a list of the prospective client's current medical conditions. As stated, the information in this report cannot be used to deny coverage, but can seriously affect both the cost of the term life insurance quote offered and the way the coverage will be paid out.
Most companies will take into account the seriousness of the pre-existing condition, as well as its frequency of recurrence before determining what type of term life insurance they will offer. The most common effect that a pre-existing condition will have on a policy is not on the premium, but on the payout. Companies will often defer the payout for two or three years before it will be paid out in full. Even if the death of the policy holder has nothing to do with their pre-existing condition, if it happens within the two or three year waiting period, their beneficiary will not receive the full value of the policy. Each company will operate differently, with some offering limited compensation when a death occurs before the waiting period is up, and some offering none.
Each company will also ask different questions when they take on a new client, and the answers to those questions, in combination with the MIB report, will determine what the ultimate premium looks like. Some companies will offer premium discounts for those with pre-existing conditions, but often at the cost of a reduced pay out. For any new policy of term life insurance, pre-existing conditions can have a significant effect on both the monthly rates and the time in which the payout monies are disbursed. As with any term life insurance, shopping around for the best price is key.
Free Insurance Quotes
For many Americans, finding a term life insurance quote that suits their budget can be a difficult task. While term life insurance offers greater flexibility and cheaper rates than its sibling, whole life insurance, there is a host of factors that influence who is granted coverage and under what conditions. One of the largest factors that can impact a company's willingness to offer a term life insurance plan to a client is the presence of any pre-existing conditions. These can include a host of illnesses including cancer, stroke, and kidney or liver failure. In short, any condition which is present in the client before the agreement is signed and could affect the chances of the death benefit being paid out prematurely.
Almost every state in the Union has now enacted law that mandates that for insurance companies offering term life insurance, pre-existing conditions cannot be a reason to deny or reject coverage. Instead, companies are allowed to request what is often known as an MIB, or Medical Information Bureau report, which contains a list of the prospective client's current medical conditions. As stated, the information in this report cannot be used to deny coverage, but can seriously affect both the cost of the term life insurance quote offered and the way the coverage will be paid out.
Most companies will take into account the seriousness of the pre-existing condition, as well as its frequency of recurrence before determining what type of term life insurance they will offer. The most common effect that a pre-existing condition will have on a policy is not on the premium, but on the payout. Companies will often defer the payout for two or three years before it will be paid out in full. Even if the death of the policy holder has nothing to do with their pre-existing condition, if it happens within the two or three year waiting period, their beneficiary will not receive the full value of the policy. Each company will operate differently, with some offering limited compensation when a death occurs before the waiting period is up, and some offering none.
Each company will also ask different questions when they take on a new client, and the answers to those questions, in combination with the MIB report, will determine what the ultimate premium looks like. Some companies will offer premium discounts for those with pre-existing conditions, but often at the cost of a reduced pay out. For any new policy of term life insurance, pre-existing conditions can have a significant effect on both the monthly rates and the time in which the payout monies are disbursed. As with any term life insurance, shopping around for the best price is key.
