You might be surprised at how often people tell themselves ‘No’ when it comes to life insurance. In many cases, they have already made up their minds that they can’t get life insurance before they meet with me.
Some people express worry because they believe they won’t be able to pay their end-of-life bills. Others come in with a desperation that, truthfully, is not warranted.
The truth is that life insurance is available for people with many conditions. You just have to know where to look. Rather, you need a financial advisor that really understands life insurance underwriting, is independent, and can shop the market for you.
One of the more difficult cases I had recently stemmed from a man that ate too much fast food and he hadn’t exercised for a number of years. As a result, he developed diabetes and had been in hospital because of a heart attack.
He thought, just like a lot of people would think, “There is no way I could be approved for life insurance, so I am not going to even bother looking for it.” Others have applied to one company and either not been accepted or offered coverage at such a high rate that it didn’t even make sense to buy.
The important thing to understand is that, just because you are diabetic, have had a heart attack, a stroke or any one of a number of other health conditions, it doesn’t mean that you can’t get approved for life insurance.
It is also possible to get coverage at reasonable rates. You see, all life insurance companies have different underwriting guidelines.
For instance, one company might be more lenient with someone who has had cancer in the past. Another might offer non-smoker rates to someone who smokes cigars and some even offer non-smoker rates for people who smoke marijuana. However, other companies would only offer smoker rates, no matter what.
One of the keys to getting the best coverage possible at the best rates is to know the companies and understand how they underwrite various conditions. And when I say conditions, I mean medical conditions of course, but also other things as well.
For instance are you a pilot? Do you scuba dive? Do you travel to certain countries from time to time? If so, which countries? How long are you there and for what purpose? Again, every company has different underwriting criteria for all these things.
Another one of the critical factors that companies look at when underwriting life insurance, is how well medical conditions are controlled. Since my dad has given me his permission, I am going to talk about my dad here for a minute because he is a great example.
My dad has high blood pressure, high cholesterol, has type 2 diabetes and his father died of a heart attack when he was only 33 years old. Many people would think if he could get any life insurance at all it would be at very high rates.
However, I was actually able to get him preferred rates, which, if you aren’t familiar these are very good rates! How could this be? Simple. My dad does a good job at keeping these conditions under control. He exercises more than he used to, he eats better, and he takes medication. Additionally, he goes to see his doctor on a regular basis for checkups.
Now, understand, it wasn’t easy to get preferred rates. I did need to shop the market and discuss this situation with underwriters from various companies. I could actually get him coverage with several other companies but not at these preferred rates.
Understand some people can’t get life insurance for whatever reason. However, many people can get life insurance that didn’t know they could!
If you need coverage make sure you talk to an advisor who is not tied to just one company. I recommend someone that is independent so that they can shop the market for you. Also, make sure that they have a deep understanding of life insurance underwriting to help you secure the best coverage options available.