Understanding Life Insurance
Life insurance is a contract between an individual, the policyholder, and an insurance company. The policyholder pays regular premiums to the insurance company. In exchange, the insurance company provides a lump-sum payment, known as the death benefit, to the beneficiaries upon the policyholder's death.
Challenges for Seniors with Pre-existing Conditions
Seniors with pre-existing conditions may face challenges when applying for life insurance. Insurance companies consider pre-existing conditions as potential risks, which may increase premiums or result in coverage denials. Common pre-existing conditions among seniors include diabetes, heart disease, cancer, and high blood pressure.
Options for Seniors with Pre-existing Conditions
Despite the challenges, seniors with pre-existing conditions still have options for obtaining life insurance. One option is to explore guaranteed issue life insurance. This type of insurance does not require a medical exam or ask health-related questions. However, guaranteed issue life insurance tends to have lower coverage amounts and higher premiums. Another option is to work with an independent insurance agent who specializes in finding coverage for individuals with pre-existing conditions. These agents have access to a wider range of insurance companies and can assist seniors in finding a policy that suits their needs and budget.
Factors Affecting Premiums
Several factors affect the premiums seniors with pre-existing conditions may have to pay for life insurance. These factors include the severity of the pre-existing condition, the age of the individual, the desired coverage amount, and the type of insurance policy chosen. Seniors should be prepared to provide medical records and undergo medical underwriting when applying for traditional life insurance policies.