Asthma And Life Insurance: What You Need To Know

Asthma is a common health issue, affecting around 25 million Americans. It is a lung condition that causes inflammation and swelling, resulting in temporary narrowing of the airways. While asthma is considered a high-risk factor by life insurance companies, it is still possible to obtain life insurance coverage at excellent rates. The key factors that determine the availability and cost of life insurance for people with asthma include the severity of the condition, treatment plans, overall health, and lifestyle choices.

Life insurance companies will assess the severity of your asthma

• How long you have had asthma and whether it is seasonal or year-round.
• The frequency of asthma attacks.
• Any medications you take for your asthma, including steroids and oral corticosteroids.
• Whether you have ever been hospitalized due to asthma.
• The results of your pulmonary function test (PFT).
• The number of exacerbations and the need for short-acting medications.
• Your compliance with prescribed medications and medical appointments.

Based on these factors, the insurance company will assign you a health classification, which will impact the cost of your premiums. The classifications typically include Preferred Plus (the most affordable premiums), Preferred, Standard Plus, and Standard (the fourth-lowest premiums). If your asthma is more severe, you may be given a Table Rating, which will further increase your premium costs.

It is important to note that each insurance company has its own guidelines for evaluating risk, so it is beneficial to work with an independent broker or agent who can help you find the most favourable rates for your specific situation. Being proactive with your asthma treatment and overall health can also improve your chances of getting lower premiums.

The overall state of your health will be important

The Overall State of Your Health

When applying for life insurance, the company will assess your overall health and lifestyle, not just your asthma. This includes your medical history, age, gender, and lifestyle factors such as diet, exercise, and risky habits or hobbies. The healthier you are, the better your chances of approval and lower premiums.

Medical History

In addition to your asthma, insurance companies will consider any other medical conditions you may have. Secondary medical conditions or underlying health issues, such as high blood pressure or weight-related problems, can affect your premiums. It's important to be honest about your medical history and disclose any pre-existing conditions. Failing to do so could result in your policy being cancelled or even prosecuted as insurance fraud.

Age and Health

Age and health are the two most critical factors in determining insurability and cost. Younger, physically fit individuals are generally considered less risky to insure than older, less healthy individuals. Therefore, your age and overall health will play a significant role in the underwriting process and the rates you are offered.

Lifestyle Factors

Lifestyle choices, such as diet and exercise, can also impact your insurability. Maintaining a healthy diet and engaging in regular physical activity can improve your overall health and reduce your risk factors. Additionally, risky habits or hobbies, such as smoking or scuba diving, can increase the cost of life insurance.

You can get life insurance at a good price if you have asthma

If you have asthma, you can still get life insurance at a good price. While asthma is considered a high-risk condition, it is also very common, affecting nearly 5% of the US population. This means that many insurance companies are used to dealing with applicants with asthma and will be able to offer you a good deal.

How to get life insurance at a good price if you have asthma

The key to getting life insurance at a good price if you have asthma is to be selective about where you apply. Different insurance companies will rate your asthma differently, so it's important to shop around and find the company that will give you the best rate. This is where an independent broker can help. A broker will not be tied to one insurance company and will be able to shop the market on your behalf. They will know which companies are the most lenient when it comes to asthma and will be able to get you the best deal.

When assessing your application, insurance companies will want to know about the severity of your asthma, the treatment you are receiving, and any secondary risk factors such as smoking, your weight, and other underlying health conditions. They will also want to know how long you have had asthma, whether it is year-round or seasonal, the frequency of attacks, and any medications you are taking. They will use this information to assess the risk of insuring you and set your premium accordingly.

How to improve your chances of getting life insurance at a good price

To improve your chances of getting life insurance at a good price, it is important to be proactive in treating your asthma and improving your overall health. This includes following a healthy diet and exercise regimen, as well as any recommended medical treatments. It is also important to be honest about your asthma when applying for life insurance. Failing to disclose your condition could result in your application being rejected or your policy being cancelled.

The application process for life insurance with a pre-existing condition

When applying for life insurance with a pre-existing condition, such as asthma, there are several steps to follow and factors that will impact your approval chances and premium costs. Here is a detailed guide on the application process:

• Choose the Right Insurance Company: Different insurance companies have varying underwriting guidelines and health classifications for pre-existing conditions. Some companies may be more favourable than others for individuals with asthma. It is essential to research and compare multiple providers to find those that are more accommodating of your specific condition. Working with a broker or agent can be beneficial as they are familiar with the underwriting standards and can guide you towards insurers that are more likely to approve your application.
• Collect Documents: Before initiating the application process, gather the necessary documents and information about yourself. This includes proof of identity (such as a driver's license, passport, or birth certificate), proof of income (such as pay stubs or tax returns), and proof of residency (such as a lease agreement or utility bill).
• Complete the Application Form: The application form will require detailed information about your health, including your specific pre-existing condition(s). Be prepared to provide information such as the date of diagnosis, symptoms, any medications you take, and any hospitalizations related to your condition. You will also be asked to give the insurance company permission to access your medical and financial records for verification. Be honest and transparent when disclosing your medical history. Omitting or falsifying information can lead to application rejection or even insurance fraud accusations.
• Underwriting and Medical Exam: After submitting your application, the insurance company will conduct an underwriting process to evaluate your risk factors. This typically includes a medical exam, which may be conducted by a nurse or paramedical examiner. They will check your vital signs, draw blood, and may request additional tests depending on your pre-existing condition. The underwriter will then assess all the information, including your medical exam results, to determine your risk classification and calculate your final premiums.
• Receiving and Signing the Policy: Once the insurance company has completed their evaluation, they will send you the finalized policy contract. Read the policy document carefully to understand all the terms and conditions, including coverage amount, premiums, payment methods, riders, exclusions, and other pertinent details. If you are satisfied with the terms, sign the policy, and return one copy to the insurer while keeping the other copy in a safe place. Inform your beneficiaries about the location of this document.
• Improving Your Chances of Approval: There are several factors that can improve your chances of qualifying for life insurance with a pre-existing condition:

• Adherence to Treatment Plan: Demonstrate that you are actively managing your condition by following your doctor's treatment plan. Regular medical visits and adherence to prescribed medications reflect positively on your application.
• Healthy Lifestyle: Engage in regular exercise and maintain a healthy weight, as this can help mitigate the risks associated with your pre-existing condition.
• Comparison Shopping: Different insurers have varying standards for underwriting and approving policies. Shop around and obtain quotes from multiple providers to find the most favourable rates and terms.

Remember, having a pre-existing condition does not necessarily disqualify you from obtaining life insurance. By following the steps outlined above, you can navigate the application process effectively and increase your chances of securing life insurance coverage.

Factors that can improve insurability for people with pre-existing conditions

While having a pre-existing condition can affect your life insurance premium costs, it doesn't mean you can't get life insurance. Here are some factors that can improve insurability for people with pre-existing conditions:

• Follow your treatment plan: The better controlled your medical condition is, the less risk there is to a potential insurer. So, get a treatment plan and follow it as best you can. This will help increase your chances of maintaining and improving your health, insurability, and even quality of life.
• Exercise regularly: Exercise helps mitigate most of the factors that make a person risky to insure. However, check with your doctor before starting an exercise regimen, especially after a serious health event. Even if you can't do strenuous exercise, simple activities like walking can provide significant benefits.
• Lose weight: Losing weight is important because excess weight can affect your health, well-being, and life expectancy in many ways. Take steps to modify your eating and increase your activity until you find a way to lose weight healthily and consistently.
• Choose the right insurance company: Each life insurance company has its own underwriting guidelines and rates conditions differently. Some companies welcome applications from people with asthma, while others prefer not to take on the risk and will price their plans accordingly. Knowing the difference between these companies and which ones are likely to work in your favour can make all the difference.

Frequently asked questions