Term Life Insurance Articles
How Pre-Existing Conditions Affect Term Life Insurance Quotes
2010-06-24
The most common type of life insurance currently purchased by Americans is term insurance, which is also the original form of life insurance. Other options such as whole and universal life insurance have recently gained popularity, but term life has always been an excellent and reliable stand by. One of the reasons for this is that even with pre-existing condition such as diabetes or heart failure many consumers are able to purchase reasonable term life insurance. However, for anyone who suffers with a pre-existing condition, even if it is relatively minor, there will likely be changes to not only the insurance quotes offered, but the nature of the plan and the benefit paid.
While insurers will advertise "standard" quotes online, these will rarely apply to those with pre-existing conditions. Instead, once the company has been made aware of the condition, several pieces of information may be requested. These can range from a Medical Information Bureau (MIB) request, which essentially grants the company access to a client's medical history, to a simple, but more detailed questionnaire than those filled out by "standard" term life customers. While this questionnaire and the MIB report cannot be used to deny coverage, it can be used to set premiums as well as prompt further investigation into the condition.
The nature of the term insurance benefit may change as well. For many people with a condition which can threaten their life at any time, there will be a waiting period imposed on the payout of any death benefit from the company. This period can be anywhere from 1 to 3 years, a death prior to this time will either result in a limited payout or none at all, depending on the terms of the contract. This benefit waiting period will be determined by the company's estimation of death based on the seriousness and recurring nature of the condition. There are some companies that will, for a higher premium, offer a "first-day" death benefit. This means that as of the first day that the policy is in force, it will pay out to its full amount. While this may cost more initially, it can be worth it in the long run to know that a full benefit will be the result upon death, no matter what the time frame.
While obtaining reasonable quotes for term insurance can be more of a challenge for those with pre-existing conditions, it is by no means impossible. By shopping around and being clear on any exceptions and waiting periods, those with even serious conditions can still manage to pay a reasonable rate for their insurance and get the coverage they need in case the unthinkable should occur.
