ANSWERS: 1
  • You need life insurance, but because you have a chronic illness, companies won't approve your application or you can't afford to pay the premium. Don't give up. By researching your options, and asking for advice when you need to, you'll have peace of mind knowing your family will be protected in their time of need.

    Chronic Depression

    Life insurance companies are just as concerned about your mental health, as your physical health, and if you have a history of being depressed, you may pay a higher premium and in some cases, you will be denied coverage. Life insurance underwriters want to determine if your chronic depression may be due to a more serious mental condition, which may require medication for the rest of your life. If your condition can be controlled by medication, you may qualify for life insurance coverage. If you haven't been hospitalized for depression, don't smoke, haven't attempted suicide and are keeping your depression under control with one medication, you may be able to pay a lower premium for your life insurance. If your doctor decides that you no longer need anti-depressants and you were previously denied life insurance coverage, you may now be approved.

    Diabetes

    Once you're diagnosed with diabetes, rates for life insurance may no longer be affordable, or you may be denied coverage. According to the American Diabetes Association, state and federal laws allow life insurance companies to charge premiums based on a person's health status. Companies who specialize in chronic health problems such as diabetes, may be able to provide coverage at a rate you can afford. One important factor that will affect life insurance premiums for type 1 or type 2 diabetics, is how well you're controlling your diabetes. If you're controlling your blood sugar levels, taking prescribed medication, and you don't have complications such as diabetic neuropathy or kidney disease, you may be able to obtain coverage at an affordable rate. Apply to a life insurance company that bases your approval on clinical underwriting, where your total health is considered, not just the fact that you have diabetes. Become your own health advocate by comparison shopping to find the best life insurance policy that fits your needs.

    Guaranteed Issue Life Insurance

    If you are denied life insurance coverage, you can purchase guaranteed issue life insurance, even if you have a chronic illness. These companies can make a profit by charging a higher premium, and by setting an age limit. Most policies won't insure applicants over the age of 70. Another way companies make a profit is by not paying a policy in full for a two-year period. If you're approved for a policy in 2009, and you die in 2010, your beneficiary may receive little or no benefit. Guaranteed issue policies build cash value, and the premium amount and death benefit never changes. Most of these policies will pay the full benefit if you die in an accident.

    Source:

    American Diabetes Association: Life Insurance Information For People With Diabetes

    More Information:

    Insure.com: Buying Life Insurance When You Have Anxiety Or Depression

    Compuquotes.com: Guaranteed Issue Life Insurance

    Mayo Clinic: Diabetic Complications

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