Uninsurable Medical Conditions for Life Insurance
Life insurance underwriting has come a long way over the years. As medicine and medical technology in general have improved over time, it has become somewhat easier to get affordable life insurance rates with moderate health issues. That’s the good news. The bad news is that in certain instances, you will automatically be declined for life insurance if you have certain medical conditions. Before you consider applying for life insurance, it is important to know if your medical condition makes you uninsurable. Here is a list of some medical conditions that could make you uninsurable for life insurance.
Automatic Decline versus Waiting Period
It is important to know that some medical impairments are going to be automatic declines no matter what. Others will require a waiting period to assess treatment and recovery. For instance, you will most likely be declined for life insurance if you immediately apply after you’ve had a heart attack. But if you take the appropriate steps for treatment and recovery such as losing weight, taking prescribed medications, living a healthy lifestyle and engaging in cardiac rehabilitation, you could be considered for coverage after a certain period of time (depending on the life insurance company).
Medical Impairments that are Almost Always Automatic Declines
The following specific medical impairments are considered automatic declines for fully underwritten life insurance policy by most companies. Some moderate forms of the impairments listed below are insurable such as diabetes or COPD as long as they are being controlled and haven’t progressed. For this reason, the list below should only be considered a guideline since each applicant’s situation is unique and each insurance company has its own guidelines. It is best to have your agent get the opinion of an underwriter for your case before you consider applying for life insurance if you have a major medical decision.
ALS (Lou Gehrig’s Disease) – ALS is a progressive neurodegenerative disease that affects nerve cells in the brain and the spinal cord. The average survival time is 3 years which is why it is declined.
AIDS or HIV – As people are living longer lives with the disease, you could see life insurance companies fully underwrite applicants with HIV in the future.
Alzheimer’s/ Dementia – Any major cognitive impairment will most likely be a decline.
Severe COPD or Emphysema – If your COPD is disabling or requires continuous oxygen treatment, you will most likely be declined.
Diabetes – Type I diabetes that is uncontrolled with complications present (amputation, retinopathy, kidney or cardiovascular disease) will most likely be declined.
Cystic Fibrosis – Cystic fibrosis is a life-threatening, genetic disease that causes persistent lung infections and progressively limits the ability to breathe. The median predicted survival age is 40 years old. (www.CFF.org)
Cirrhosis of the Liver – Cirrhosis is a slowly progressing disease in which healthy liver tissue is replaced with scar tissue, eventually preventing the liver from functioning properly. It can progress slowly but there is no cure which is why applicants with diagnosed cirrhosis of the liver are declined.
Invasive Cancer – Some types of cancer such as certain skin cancer or prostate cancer can be insurable at preferred rates. Most other invasive cancers such as colon or pancreatic cancer will be declined unless you have been in full recovery for a certain number of years.
Kidney Failure Requiring Dialysis – If you suffer from kidney failure that requires dialysis, you will be declined for life insurance.
Huntington’s disease (HD) – Huntington’s disease (HD) is a fatal genetic disorder that causes the progressive breakdown of nerve cells in the brain. It deteriorates a person’s physical and mental abilities during their prime working years and has no cure.
Organ Transplant – If you are awaiting an organ transplant, you will be declined coverage. You may qualify for coverage if it is a kidney transplant in some cases.
Major Advised Surgery – If it has been advised by your physician that you have surgery and you have not done so, you will be declined coverage in most cases. Once the surgery is performed, you could qualify after a certain waiting period.
Some Health Impairments Require a Waiting Period
Some of the more serious health impairments such as cancer or coronary disease will most likely not be insurable immediately after diagnosis. If you go through treatment and your condition is being controlled, you could qualify for life insurance. There is usually a waiting period to ensure treatment has worked before you will be able to qualify for coverage. Some companies will even add flat-extras to your premium for a certain number of years. The most important thing to remember is that each situation is different and life insurance companies always look at these cases on an individual basis. It is best to have your case looked at by multiple underwriters before you even consider filling out an application.
What are Your Life Insurance Alternatives if You are Uninsurable?
If you have a major health impairment that doesn’t allow you to obtain fully underwritten life insurance, you could opt for guaranteed issue life insurance. This type of life insurance doesn’t require you to answer any medical questions and you can’t be turned down for health reasons. It is important to note that this type of coverage won’t pay the full death benefit if you die within 2 years of the policy start date unless the death is accidental. If you pass away within 2 years of the policy start date, your beneficiaries will usually receive the premiums paid in plus a specific interest rate (usually 10%). Once 2 years have passed, your beneficiaries will get the full death benefit if you die. These policies are expensive and offer smaller coverage amounts so they should only be used as a last resort.
Getting an Assessment of Your Situation Before You Apply for Life Insurance
This post was simply meant to offer a guideline for uninsurable health conditions. Each applicant’s case is different and will require individual consideration by underwriters, so outcomes will differ. The important thing is to shop your case before you fill out an application. We will gather the specifics of your case and shop it around to the top insurers to find you the best fit for your situation. Some companies might deem you uninsurable while others could offer you coverage. If you need life insurance and you aren’t sure if you are insurable, give us a call at 888-687-9444 or email us at info@archstoneinsurance.com for a free consultation.
About Us
Archstone Insurance Services, LLC is an independent agency that shops over 40 of the top life insurance carriers to provide huge savings on life insurance coverage for our clients. We are happy to answer any questions you might have about any of the insurance products we offer, your planning needs or your existing coverage. Feel free to call us directly at (888) 687-9444 or email us at info@archstoneagency.com.
