Once you decide to take out life insurance, you should know that one of the main features and issues is the health of the applicant. Thus, depending on health conditions, the company will make the decision on the cost of the policy and the coverage as well. However, it will also have some effect on other features of the policy contract. If you happen to suffer from some of the pre-existing conditions, the policy contract will be slightly different from a regular one.
The usual procedure after you have applied for life insurance is that the insurance company will request permission from you to contact your doctor and receive from them you medical history and information on your health. As it has already been mentioned, this is the main factor when determining the cost of life insurance and the coverage. Anyway, as much as it can affect the costs, the company cannot use it to decline your application. So, in case you actually have some pre-existing condition, you will not be deemed uninsurable because of your illness. However, some adjustments to the contract will ensue.
In fact, there exists certain contestability period and it is actually the period when the company is able to pronounce the policy void because of misrepresentation, concealment or other similar factors. Thus, if the insurance company takes no action while this period is ongoing, you will have the right to be fully paid out.
Some of the pre-existing conditions include stroke, cancer, liver disease, heart attack, lung disease, kidney failure, emphysema or COPD (chronic obstructive pulmonary disease) and uncontrollable diabetes usually affect the terms of policy and because of these conditions, the waiting period will probably be two or three years. During these two to three years, if you pass away, your beneficiary will not receive the payout in full. When the period is over, the beneficiary can receive the full payout.
Nevertheless, these criteria will vary from one company to another and different companies will pose different questions concerning your health. With some pre-existing conditions, certain companies will offer lower premiums and more benefits. Thus, it is important that you find the right company for you. The Internet can be of great help here for there are various websites where you can find the necessary information on a lot of companies.
However, in case you are really not sure about the terms and conditions, it is advisable that you hire a broker or a professional advisor who can also provide you with a lot of information help you make the right decision.
All in all, in case you do have some of the pre-existing conditions, do not worry – you can still buy a life insurance policy, but your contract will be adjusted. It is also important that you find the health related questions that a company will ask before you submit your application. Nevertheless, to be on the safe side, you can consult a broker or an advisor who will be of great assistance to you.