Pre-Existing Conditions Affect Your Life Insurance Plan

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To call life insurance a future investment would be an understatement. This is because the benefits it provides to your family and loved ones go far beyond your foreseeable future. Rather than an applicant himself, a life insurance plan aims to keep his family safe from any financial difficulty that can be encountered after his passing. The only catch is that some applicants may have to pay more than others due to a single reason: pre-existing conditions. This factor has an enormous impact on the amount an applicant has to pay. That is if he is offered any coverage at all. Many applicants are turned away by insurers due to the fact that they have existing health problems.

The new regulations in the Affordable Healthcare Act aim to stop health insurance providing companies from denying coverage for applicants with pre-existing issues. However, this change is limited to the domains of health insurance only and life insurance still remains the same. By checking an applicant’s health records and seeing if they suffer from a pre-existing issue, they can determine which category of plans you fall into. Knowing about which plan you will be offered helps to know how much premium you will have to pay for it.

To have any pre-existing health issues can make a person a high-risk applicant for insurers so they are charged with expensive premiums. On the other hand, healthier applicants are offered the most affordable rates with lower premiums because they are predicted to have longer life expectancies than their high-risk counterparts. The grim reality is that applicants with some chronic diseases can be termed as too high-risk for insurers to cover at all.

These reasons are exactly why insurers feel the need to ask about health status. Since their main concern is that insured people pay their premiums, life expectancy is a major factor that can disrupt them from earning it. This is why insurers are reluctant to provide coverage when applicants reveal information about pre-existing conditions. Take a quiz to test your knowledge on life insurance plans affected by pre-existing health conditions. Visit the HealthIQ website if you’re interested to learn more about the influence of pre-existing conditions on life insurance premiums.