Health Conditions: Impacting Life Insurance Policies

Life insurance is a crucial financial safety net for individuals and their loved ones, but it can be challenging to obtain for those with health issues. Various health conditions can impact life insurance rates and eligibility, with pre-existing medical issues often resulting in higher premiums or even rejection. Common conditions like high blood pressure, obesity, high cholesterol, cancer, mental health issues, respiratory problems, digestive issues, muscular diseases, lymphatic cancers, and endocrine disorders can all affect life insurance outcomes. While some insurers may deny coverage or charge significantly more, others offer flexible options for those managing their conditions effectively. It's important to note that age, lifestyle, and gender also influence rates, and certain risky habits can further increase costs. Ultimately, each insurer assesses applicants on a case-by-case basis, and it's beneficial to consult professionals for tailored advice.

High blood pressure

How High Blood Pressure Affects Life Insurance

Factors Affecting Life Insurance Rates for People with High Blood Pressure

Several factors can influence the rates you'll pay:

• Age of first diagnosis: The impact of high blood pressure on premiums may decrease as you age, as it suggests a less severe and shorter-duration condition with reduced time for serious health consequences.
• Condition severity: The American Heart Association categorizes high blood pressure as Normal, Elevated, High (hypertension) Stage 1, and High (hypertension) Stage 2. Those in Stage 1 will likely pay lower premiums than those in Stage 2.
• Condition management: Managing high blood pressure through medication and regular medical check-ups can reduce your risk by lowering your readings and demonstrating to the insurer that you are controlling the condition.
• Medical history: Other medical conditions, such as diabetes or heart disease, can further increase premiums.
• Smoking status: Smoking can significantly impact life insurance rates, especially when coupled with high blood pressure.
• Lifestyle factors: Regular exercise, a balanced diet, stress management, and maintaining a healthy weight can positively influence insurance rates by demonstrating a commitment to managing your health.

Types of Life Insurance Policies for People with High Blood Pressure

People with high blood pressure have various life insurance options:

• Term life insurance: This type of insurance provides coverage for a chosen period, typically 10, 20, or 30 years. While it may require renewal or repurchase after the term, it often offers competitive premiums for a larger death benefit, making it a cost-effective option.
• Whole life insurance: Whole life insurance is a permanent policy offering lifelong protection and a cash value growth component. While it may be more expensive, it can be worth the cost for those seeking lifelong coverage and an added savings component.
• Universal life insurance: Universal life insurance combines the benefits of whole life insurance with the flexibility to adjust the death benefit to fit coverage or budget needs.
• Guaranteed issue life insurance: This type of insurance is a small whole life insurance policy that approves all applicants, regardless of medical conditions, and does not require a medical exam or questions. The premiums are adjusted for the smaller death benefit, making it a good option for those with high blood pressure. However, these policies may have waiting periods, and beneficiaries may only receive a refund of premiums during this period.
• Final expense insurance: Final expense insurance is a small whole life insurance policy designed to cover end-of-life costs such as medical bills and funeral expenses. It offers lifelong coverage, wealth-building through cash value, and often does not require medical exams. The death benefit is small, but the premiums are typically affordable.

Tips for Obtaining Life Insurance with High Blood Pressure

To increase your chances of obtaining desired coverage at competitive rates:

• Work with an independent agent: Independent agents can help you shop for quotes, navigate the process, and find the best policy for your needs and budget, as they work for themselves and not a specific insurer.
• Regular doctor check-ups: Visiting your doctor regularly demonstrates to the insurer that you are committed to maintaining good health. It also helps manage your condition through medication and advice.
• Avoid substances that raise blood pressure: Adjust your diet and lifestyle to avoid substances that can elevate your blood pressure, especially before a medical exam for your policy.

Obesity

Insurance companies view obesity as a risk factor because it may be indicative of other health conditions. For example, obesity can lead to an increased probability of developing diabetes, heart disease, high blood pressure, stroke, or cancer. As a result, insurance companies have to charge more to take on this risk. The more severe the obesity levels, the more risk the person poses, and the higher the insurance rates.

Insurance providers use your height-to-weight ratio to determine whether you are overweight or obese. They typically use the Centers for Disease Control and Prevention's (CDC) Body Mass Index (BMI) index, which measures both height and weight, to assess whether your weight makes you a high-risk applicant. A BMI of 30 and above is considered obese.

Insurers also use their own "build charts" to determine how your BMI will affect your eligibility and rate. These charts can be more generous than standard BMI classifications and are more flexible, especially for individuals with a higher muscle-to-fat ratio who might be classified as "overweight" by BMI but are actually in good health.

If you are obese, you can still qualify for more affordable policies if your BMI is not too far outside of the normal range. Losing weight can also help lower your insurance costs. Showing that you are taking steps to eat better, improve your health, and visit your doctor regularly will indicate efforts to improve your health and can earn you lower premiums.

If you are unable to qualify for a term life insurance policy due to obesity, there is always the option of the most expensive, guaranteed coverage option. Working with an independent insurance agent can also help you find insurance companies that are more favorable toward obese applicants.

High cholesterol

Life insurance companies will often accept applicants with total cholesterol levels of 275 or 300 at Preferred Best rates, which is surprising given that doctors usually consider levels over 200 to be high. This discrepancy is because insurers evaluate your cholesterol ratio (total cholesterol divided by HDL) rather than just your total cholesterol level. They also take into account other factors, such as your overall health, lifestyle, and family history.

If you have high cholesterol, there are several things you can do to improve your life insurance rate:

• Get tested for high cholesterol before applying for life insurance.
• Take steps to lower your cholesterol, such as removing trans fats, saturated fats, sugar, and cholesterol from your diet, and losing weight.
• Control your high cholesterol with medication.
• Improve your overall health by exercising regularly, quitting smoking, and losing weight.
• Shop around for life insurance, as smaller companies may be more lenient with applicants who have high cholesterol.

Cancer

A cancer diagnosis can impact your ability to purchase life insurance, but it is not always a barrier. The impact of cancer on life insurance depends on several factors, including the type and stage of cancer, the treatment, prognosis, and individual circumstances. Here is an overview of how cancer affects life insurance:

Impact on Life Insurance

Waiting Periods and Remission

Life insurance companies often require cancer patients to be in remission for a certain period before offering coverage. The waiting period can vary depending on the type of cancer and the insurer's underwriting standards. For example, some companies may require a minimum of five years in remission, while others may wait for up to ten years for specific cancers. During this time, cancer survivors may still be able to access alternative types of life insurance.

Types of Life Insurance for Cancer Patients

While traditional term or whole life insurance policies may not be available immediately after a cancer diagnosis, there are other options:

• Guaranteed issue life insurance: This type of policy does not deny coverage based on pre-existing conditions and usually does not require medical questions or a medical history. However, it tends to be more expensive, and the coverage amounts are typically low.
• Final expense life insurance: This insurance is designed to cover burial, funeral, and end-of-life expenses. It often comes in the form of guaranteed issue and can provide financial support to grieving families.
• Group life insurance: Cancer patients may access group life insurance through their employer, which can be beneficial as it often comes in the form of guaranteed issue without penalties for a cancer diagnosis.

Improving Insurability

There are several steps that cancer patients and survivors can take to improve their chances of obtaining life insurance and potentially lower their rates:

• Follow treatment plans: Keeping the medical condition well-controlled by adhering to treatment plans can reduce the risk and improve insurability.
• Exercise regularly: Regular exercise can help mitigate factors that make a person risky to insure and improve overall health and wellbeing.
• Improve overall health: Eating healthily and losing weight can positively impact health and life expectancy, making it more favourable for insurance companies.
• Avoid tobacco: Life insurance quotes for smokers are typically much higher, so avoiding tobacco can help lower rates.
• Choose a low-risk profession: Occupations like police officers, firefighters, and construction workers may experience higher premiums due to the nature of their work.
• Avoid risky hobbies: Activities like mountain climbing, skydiving, and scuba diving can increase rates due to their inherent risks.

Working with an Agent

It is essential to work with an experienced independent life insurance agent, especially one specializing in impaired risk underwriting. They can guide cancer survivors through the process, advocate on their behalf, and target companies more likely to offer favourable rates.

Mental health conditions

Insurers assess people with mental health issues based on several factors, including the severity of the condition, the presence of any tangential conditions, and the effectiveness of the treatment. Minor issues, like depression, anxiety, or sleep apnea, can typically be controlled with regular treatment and therefore result in only slightly higher premiums. However, more severe or poorly managed cases may face challenges in obtaining a policy.

People with certain mental health conditions, such as dementia or Alzheimer's, residing in a hospital or nursing home, or with a history of substance abuse, may find it particularly difficult to secure life insurance.

It is important to note that having a pre-existing mental health condition does not disqualify an individual from obtaining life insurance. However, it is crucial to disclose any pre-existing conditions to the insurer, as nondisclosure may result in the invalidation of the policy when beneficiaries make a claim.

Additionally, the manageability of a mental health condition can influence insurance rates. Conditions that are well-controlled or managed through treatment plans and lifestyle changes, such as regular exercise, are viewed more favorably by insurers. This can increase the chances of obtaining life insurance and potentially lower the premiums.

Mental health issues fall under a broad spectrum, and insurers consider the severity and associated risks when determining acceptance and premium rates. Manageable issues, such as anxiety and depression, are generally more acceptable than more severe conditions with additional health problems.

Frequently asked questions