Getting life insurance is one of the best practices to secure your family financially. When applying for life insurance, it is true that you can be easily qualified if your health condition is relatively impressive. If you are healthier and younger, insurance companies tend to give the best available rates or premium offers. On the other hand, people with a critical illness or disabilities are provided with substantial rates and have a bigger chance of getting denied.
But what if you have health history like an injury due to sports or accident, or chronic health condition? You might think that qualifying for life insurance is impossible and will be getting the worst rate possible. Well, that is not the case. In fact, you can also avail of life insurance even if you have a chronic health condition.
Chronic Health Condition and Its Effects Globally
Before applying for life insurance for chronic health conditions, you must first know what they are. Chronic health conditions are illnesses that have long term effects on patients. A minimum of three months under a certain illness may be considered as chronic. Usually, these conditions are terminal but some can be controlled by medication like diabetes. The effects of chronic diseases have a great impact across the globe as there are no age or specific factors in which you can acquire them. Children and toddlers are also not exempted from having chronic illnesses.
Here is a list of chronic health conditions and the number of cases globally.
- High blood pressure — it affects around 50 percent of the global population and can exhibit in the teenage years. Most cases are linked to a hereditary factor and/or an unhealthy lifestyle.
- Arthritis — 22 percent of the total population suffers from joint pains and inflammation.
- Osteoporosis — 19 percent of the people around the world are suffering from calcium deficiency problems like osteoporosis.
- Diabetes — Around 15 percent of the global population suffers from diabetes and the complications that come with it.
- Chronic obstructive pulmonary condition and other pulmonary diseases — 13 percent of the global population suffers from lung and respiratory problems.
- Cancer — 5 percent of the people across have cancer-related problems which have a high fatality rate
- Stroke — 5 percent of the global populace suffered from a stroke.
- Alzheimer’s disease and other forms of dementia — Most cases around the globe are linked with old age. Around 40 percent of people age 75 and above are suffering from this condition.
- Heart disease — around 30 percent of the global population are affected by heart diseases. Unhealthy lifestyles, hereditary and congenital are associated with having this illness.
- Depression and anxiety — All people around the world experience stress and too much stress can develop into depression and anxiety. Approximately 25 percent of people across the globe suffer from this condition
A person can suffer from multiple chronic health conditions and life insurance providers have brackets suitable for every condition you have.
Life Insurance Brackets
A person can suffer from multiple chronic health conditions and life insurance providers have brackets suitable for every condition you have. As stated above, the healthier you are the better insurance plans will be offered to you. However, if you have a chronic condition, life insurance providers have consideration and proper life insurance that suits your condition based on your health condition. A good example is that life insurance for diabetics will be different from the life insurance of a person with excellent health. Below are the life insurance classification:
- Substandard — probably the highest premium price because of your previous medical problems like a heart attack or stroke. The rates start from the standard price plus a percentage of it that can go up to 200 percent.
- Standard — this bracket shows that even if you do not have a serious health problem, your physical and medical results have issues. Few causes are less ideal body mass index or BMI, medical exams with notable comments and family history.
- Standard Plus — If you fall into this bracket, it is a pretty good sign of better health in the future. A few issues with your body weight and minor problems can be addressed with a little effort.
- Preferred — Falling in this category showcases your very satisfactory health condition. Though you lack some benefits that are given to Preferred Plus members, second place is not that bad because your health is in better standing.
- Preferred Plus — has the lowest premium rates means you are in an excellent health condition. No family history, ideal BMI and no previous medical record. You are a gem for the insurance company.
Best Types of Life Insurance for Chronic Illness
The first step to take when applying for life insurance while suffering from a chronic health condition is to decide what nature of life insurance to sign up for. There are many types of life insurance policies provided by insurance companies, but for people who suffer from chronic illness, the two policies to choose from are the term life insurance and whole life insurance.
- Term life insurance — A type of pure life insurance policy. This policy lasts for a set number of years or at a certain age. During the coverage, you will be tasked to pay a monthly premium to ensure the active status of your term life insurance. If you pass away during that period, your beneficiaries will get the face amount of your death benefit. If you have a chronic condition the term life insurance may be the best for you.
- Whole life insurance — Permanent life insurance that combines elements from life insurance and an investment component like real estate or property investment. Unlike the term life insurance which has preset time or age of coverage, whole life insurance lasts until your last breath. In exchange for that, you have to pay monthly premium fees which can be more expensive than the term life insurance monthly premiums.
Reasons to Get One If You Have Chronic Health Condition
Now that you are knowledgeable about chronic illnesses and insurance policies, here are the reasons why you need life insurance if you have a chronic health condition:
- Secure the Future of Your Family and Loved
If you are the one who supports your family or loved ones financially, life insurance is a great way to secure their future when an unfortunate event happens to you. It is a great way to sustain the living conditions of your family especially young children who cannot still provide for themselves. This life insurance can be used for their day-to-day expenses like food, water, electricity and other things they need as they grow.
- Acquire More Financial Security
Aside from covering daily expenses, life insurance can be used for the education of your children or by your partner to start a business. This will provide them the standing ground to catch up for the financial income that you provide when you are around. The life insurance will be great for the adjustment time of your family and give them a considerable space to grieve for your loss while not thinking of financial hardships they may face.
- Leave Your Family with Inheritance
While most inheritance comes in the form of property and assets, life insurance fits great in this role. The insurance service provider will let you name your beneficiary upon the creation of your insurance policy. You can also give direction on how you want to use the money by writing a will. In this way, your family can still honor your wishes on the money that you left them and put them to good use. A great way to help your family and loved ones to create a better future by giving some financial aid even when you passed away.
- Pay Off for Loans, Debts and Other Expenses
It is true that most life insurance policies have the sole purpose of aiding the deceased family’s daily finances and for education purposes. Aside from that, you can use life insurance to pay off pending loans, medical expenses, legal debts, and even mortgage. The flexibility of life insurance in terms of its usability gives you an assurance, that no matter financial hardship your family may face when you are gone, they can go pass through it.
- Brings You Peace of Mind
Thinking about leaving your family causes you to worry and unfocus in whatever you do. However, if you have a life insurance plan, you can put your mind at ease and focus your mind on completing your everyday tasks or work. Life insurance gives you the peace of mind that your family would not be suffering hardships when you are gone in their lives.
Chronic health conditions are not hindrances in getting life insurance. Insurance service providers have suitable plans for these conditions. With some research and negotiation, you can avail of the best life insurance that suits your situation. Keep in mind the health classification and types of life insurance to maximize the value of your money.
There are lots of benefits like monetary and emotional support that life insurance can provide your family when times get rough. Hopefully, this article provided you proper knowledge and understanding about life insurance for chronic illnesses and its benefits to help you decide and have the best insurance you can get.