Obtaining life insurance when you have various health conditions can be difficult. Any time that an applicant has an ailment that could have an effect on his or her life expectancy, it will also impact their ability to qualify for coverage. This is because they are seen as more of a risk to the insurance carrier.
While all life insurance companies consider an applicant’s overall health when underwriting a potential insured for coverage, insurers will oftentimes use different methods for qualifying individuals. Therefore, while one company might outright reject someone for coverage, another may accept them.
This is why it is important to know what insurers look for when underwriting an application, as well as to be as detailed as possible when submitting an application for coverage, as it could truly make the difference between securing long term financial protection for your loved ones or not.
Have you thought about or considered final expense life insurance? We can assist you with all types of insurance and are happy to answer your questions. Contact us today!
What the Underwriters Look For
When you have anemia, life insurance underwriters will analyze several key factors on your application. These will determine whether or not you will qualify for coverage, and if so, what your policy’s rating will be.
In most cases, the life insurance company will want information on the following criteria:
- How long you have had anemia.
- The underlying cause of your condition.
- Whether or not you have ever been hospitalized due to your condition and if so, for how long.
- What symptoms you have suffered due to your anemia within the past six months.
- The results of your most recent blood tests.
- The medications and / or supplements that you take for your condition.
Give them as much info as you can, as this can prevent the underwriters from having to ask for additional details. Should this happen, it can slow down the underwriting process, lengthening the time before you hear back from the insurer regarding your approval for coverage.
In addition, by providing more detailed answers, you are also showing the underwriters that you have your condition under control. This can actually improve your chances of being approved for the life insurance coverage.
Your Policy’s Rating
Once the underwriters have analyzed your application, they will either approve it or decline it for coverage. In most cases, an applicant who has anemia due to aplastic anemia disease, as well as those who are not properly treating their condition, may be declined. This is because these individuals present a high risk of a claim to the insurance company.
Otherwise, however, it is likely that your application could be approved. Many of those who have anemia are approved either at a Standard or a Substandard (or Table) rating. With a substandard rating, your policy’s rating will actually depend upon the actual cause of your condition, as well as your overall health.
If you are in relatively good health and have not had any incidents in the past year, it is possible that you could qualify for a Standard policy rating – provided that you have normal blood levels. A standard policy rating is the rating that most life insurance policy buyers who are of “average” health, height, and weight qualify for.
While most insurance companies also offer Preferred and even a Preferred Plus ratings for those who are in excellent and superior health, it is unlikely that individuals with health conditions such as anemia would qualify for a policy in these rating categories.
No Exam Life Insurance
We get a lot of questions about no exam and the benefits of these policies. To answer those questions, we have included this section of no exam plans for people with anemia.
The most obvious advantage is that without the medical exam, the insurance company will not get an idea of what your current health is, which means if you’ve recently been diagnosed with a health problem, then they won’t see those health complications. The company is still going to look at your medical records and prescription records.
Let’s talk about speed. If you want the quickest life insurance decision, go no exam. Most people hate waiting. You could end up waiting almost two months before you get an accepted or rejected decision on your application with a traditional policy. With no exam, you only wait a couple of days.
No exams aren’t all good. There are some serious problems, otherwise everyone would have one. One reason everyone doesn’t buy a no exam policy is because of price. No exam plans are more expensive.
If the price doesn’t scare you off, then you should take notice of the amount of coverage you can buy. The average life insurance company allows applicants to buy $300,000 worth of insurance. Some allow up to $500,000, but even the higher limits may not be enough.
Taking the Next Step to Getting Coverage
When you’re ready to take the next step towards applying for coverage, it is to partner with one of our agents. We are experts in high-risk insurance.
That way, when your application is submitted, it will be much better prepared with any of the necessary additional paperwork that may be required. This can help to alleviate hold-ups in the underwriting process.
The agency you work with should also have access to several insurance companies. This will allow you to compare a number of insurers and their policies in order to determine the best term life insurance policy that will fit best with your coverage needs and your budget.
Having a health condition such as anemia can make obtaining life insurance coverage difficult. However, by working with an agency that is armed with experience in high risk cases and a number of different insurers to choose from, you will increase your chances of approval exponentially from the start.
Let’s get started! Use the form on the side of the page or give us a call!