Life insurance rates are calculated by factoring your risk factors, including age, health, and gender. If you’re already sick, your premiums are likely to be higher and your payouts lower. But you should be able to find a policy if you are under 70 years old.
Term life insurance providers are all different. Some are more willing to take on higher risk customers such as people with a chronic illness. You may have to shop around to find a company that meets your needs and will write a policy within your budget. There are websites like A2Z Term Life that can help you sort through these insurance providers and save you much time.
Before shopping for insurance, decide what you intend to accomplish. Why do you want insurance? With term life insurance, you might be shopping for:
- A burial expense policy
- Financial security for survivors
- Enough to pay off your debts
Many people believe that is is impossible for an unhealthy person to find a life insurance policy. The truth is that plenty of insurance companies offer high-risk term policies. Generally speaking, term life insurance for the sickly will cost more than average and might come with lower payouts or shorter contract terms. It’s important to understand the terms of the agreement before you sign a contract.
Things to consider
Due to the nature of risk-based calculations, your policy terms and rates can vary widely. Cigarette smokers, for example, will pay much higher premiums than non-smokers. If you have a chronic illness or condition, every additional risk factor will add to the cost of your policy.
Guaranteed acceptance term life insurance
If you have no other option, guaranteed acceptance term life insurance will provide some benefits. You won’t have to get a physical exam and they only ask a few questions. These are usually very high risk policies with high premiums and low payouts. The coverage is typically only about $10k to $20k. Enough to cover funeral expenses, but not much more.
Guaranteed acceptance policies are typically a graded death benefit, which means if you die within the first two or three years after you buy the policy, it will only pay back the amount you paid in, with interest. Your beneficiaries will not get the full face value of the policy under those conditions.
When you’re already sick, finding term insurance that meets your needs could be tricky. You may have to settle for less than you originally intended. But you should be able to find a policy that helps…and gives you peace of mind.