As we all already know, life insurance is such an important tool. It protects your family in case of your death, providing them with the finances they need in order to live comfortably even if you are not there to provide for them anymore. Plus, it can be of great help in planning the funeral and covering all the costs associated with it.
Yet, you probably also know that now everyone’s premiums will be the same. So, what you’re most likely wondering right now is what the cover for people with medical issues would be. Will the premium be more expensive for someone with a pre-existing condition, or not? And, well, that is precisely what we are going to be talking about today.
Before we get to that, though, let us quickly give you a better idea about why getting a life insurance policy is such a good idea in the first place. Well, for one thing, your family will be financially safe after your death, and that is certainly a huge plus. Then, there is the fact that they can use the money as monthly income if that is more suitable for them.
Of course, we also cannot fail to mention that they won’t pay taxes on these benefits. And, they can use the money to pay the mortgage, or any other expenses that may come their way. In short, this is a type of financial protection that is sure to be quite useful for your family.
Anyway, let us now get back to our main topic. What will happen to the premium if you have a pre-existing condition? Will it be more expensive and why? Time to get to the bottom of this and help you get a better idea about what to expect if you are just now thinking of taking out a policy for yourself.
Read about some of the benefits here as well: https://www.unbiased.co.uk/discover/insurance/life-insurance/the-key-benefits-of-life-insurance
Will It Be More Expensive?
Let us start by answering the question clearly and straightforwardly, before going into any kinds of details. In short, if you are wondering whether life insurance for pre-existing medical conditions is more expensive, the answer is yes. And, I suppose that this was the answer you expected, since it is quite logical.
Of course, there are various different conditions that will affect the actual premium, but we will talk about that later. For now, what you need to know is that two people with different medical conditions won’t pay the same. And that, therefore, the premium will depend on the specific condition that you are dealing with, which is, once again, perfectly logical.
Why?
Before we start talking about how much more expensive this can actually be, let us also answer another question that you most likely have right now. In short, why is it that the insurance will be more expensive when you have a pre-existing condition? As you will see, the answer is pretty logical. Read more on life insurance in general.
To understand the reason why, you have to take a look at all of this from the perspective of the actual insurer. Basically, life insurance is all about risks, as you most likely understand. So, when the insurers offer a policy, they are taking on a certain amount of risk, given that you may make the claim during the term of the policy. And, the more likely you are to pass away during that term, the higher the risk for the insurer.
When the risk is higher for the insurer, they are, of course, going to require a higher premium as well. So, some pre-existing medical conditions could indicate that you are in poor health, and that you are, thus, more likely to make the claim during the term of the policy, which means that the insurers are taking on a higher risk. Even if the condition is well-managed, they are still likely to see it as a risk, and thus increase your premium.
How Much More Expensive Can It Actually Be?
Onto the main question now. It is clear to you that this can cost more, but you may be wondering how much more exactly. Naturally, there is no one-size-fits-all answer. Meaning, thus, that it depends on various factors, including the actual medical condition that you are dealing with. We are now going to check out those factors that the premium will depend on, but it would be best for you to contact a good provider in your area, and talk to them directly, so that you can get a completely clear idea about what to actually expect.
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Anyway, as mentioned, we are going to talk about those factors as well. So, let us talk about them in more details, and help you understand what it is that you can expect about the premium before you actually start contacting providers. Here are the factors that will affect the costs:
- The Actual Type of Condition
First things first, the premium will depend on the type of condition you are dealing with. Therefore, when checking out how much life insurance costs, you will have to take the specific condition into account. After all, it won’t cost the same if you are struggling with, say, type 2 diabetes, or, for example, a mild asthma.
- Its Severity
As it is logical, the severity of the condition is sure to affect the premium. And, you could have concluded that from the above. More serious problems will lead to higher premiums.
- The Way It Is Managed and Controlled
How well you are managing the condition will have an impact on the premium as well. If you’re controlling it well, and there have been no recent flare-ups and hospitalizations, the premium may not go up that much. On the other hand, if the condition is not well-manged, you’re sure to see an increase.
- Your Age, Lifestyle and Medical History
Finally, your age, your lifestyle, and your medical history will also affect the overall costs. These are further indicators of the amount of risk the insurers will be assuming when offering you the policy. So, if you are younger, you lead a healthy lifestyle, and you have no serious conditions in your medical history, the premium is sure to be cheaper.