Buying a life insurance policy can be complex if you have a pre-existing medical condition. Although purchasing a life plan can be a tough process if you have a serious health problem, but it is not impossible. If you are determined to acquire a policy, anticipate that you will need to pay higher premium compared to applicants who are in better health. In addition, expect to get less coverage than what you want. You can obtain a policy through an employer or may want to take into account other options such as getting a savings plan. Below are few of the available alternatives that can meet your life insurance needs notwithstanding your present heath condition:
Guaranteed Issue Life Insurance
One of the options on hand for people with grave health conditions is guaranteed issue life insurance. There are quite a few companies that focus in this sort of policy. Most guaranteed issue life insurance plan have a graded benefit period. If you die in the first two or three years of the policy, your beneficiaries will only collect the premiums you paid plus some interest, but not the entire death benefit. In this type of life plan, premiums can be costly and benefits are minimal. Review your policy if you choose this kind of life insurance.
Rated Life Insurance
When you apply for a policy, there is a segment of questions in the application form regarding your health status. At any rate, answer the questions completely and candidly as these are necessary information that will be used to calculate the risk of your policy. If you die on the early years of the existence of your policy and the insurer learned that you lied or failed to disclose your health condition, the company can reject the claim for death benefit. As you submit your application in an insurance company, they can accept it, decline the application or offer you a rated policy. Accepting their offer for rated policy means that you agree to pay for a higher amount of premium.
Group Life Insurance
Basically, this type of policy is offered through an employer or union. Fortunately, there is no underwriting in this sort of life insurance in view of the fact that the risk is spread across the group. Group life insurance can endow you with much coverage. However, you may not be able to continue if you resign from your company. Ask your employer’s human resources department if the policy is portable. If the policy is portable then you are accountable for the premiums after you leave.
Alternatives to Life Insurance
If you have applied to several insurance companies yet you have not found the policy that really meets your needs, you may think about resorting to other options. The best option to secure your money is open a savings account. If you have a lump sum on hand, you can put your fund on a time deposit account and let it earn interest over time. On the other hand, you can just open a savings account and have you money accessible anytime your family needs it.