Life Insurance and Health Issues
Typically, life insurance is most often associated with the protection it offers financially upon the event of death. However, most people don’t take into account that health complications can occur randomly and at a moment’s notice at that. Did you know though, that some life insurance policies are equipped with certain options that facilitate this?
What Happens if a Health Issue Arises?
With some policies there is the option that allows the policy holder to obtain part or all of the death benefit in the event of certain ailments. This enables not only you, but your loved ones as well, to divert the full brunt of the financial woes associated with treatment.
In fact, the expedited payments can be used for a number of financial implications including:
1.) The overall care of yourself. In other words, the advance payment can be used to cover the costs of paying a professional or even a family member to tend to your needs and care.
2.) Tending to life events. Money from your policy can be used towards paying somebody (usually a family member) to assist you in attending certain events, regardless of distance.
3.) Home modifications. Last but certainly not least, the money can also be used to help you remain where you are. In other words, modifications made to the home to make it more accessible.
As with any “perks” or policy changes, restrictions do exist in most cases. Aside from restrictions, policy holders must also meet specific qualifications in order to receive the death benefit prematurely. Therefore, it is absolutely vital that you make sure your decision is the right one as it can have potentially-detrimental impact financially on your family, as well as yourself.
Can I Still Obtain Insurance After a Health Issue?
Encountering a health issue—minor or major—does not necessarily mean that you are uninsurable during or after the fact. Surprising yes, but most affordable health insurance companies, such as Health Net, are ready and willing to assist potential clients even if they suffer from major ailments such as cancer. However, because someone suffering from certain health issues presents more of a liability than say, a person with a clean bill of health, the insurance coverage will cost more.
While it may surprise some people, many insurance companies will provide life insurance to people who suffer from hypertension, Alzheimer’s, and even cancer. Naturally, coverage will cost more than it would for a person without such conditions. The Prudential Insurance Company of America and its affiliates has been underwriting life insurance policies for breast and prostate cancer survivors for more than 80 years so if this is a concern for you, they may be right for you.
Originally posted 2014-08-18 20:00:10.
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Great article Robert! Many people especially boomers are still eligible for life insurance after a health issue. Life insurance companies have come a long way in they way they underwrite health issues, especially in the last few years. In fact, a boomers/senior actually receives more favorable underwriting rates after a health issue like for prostate cancer than their younger counterparts.
Thank you for the helpful article Robert. I am aware of the option for accelerated death benefits from some life insurance policies which allow you to get even up to 94% of the value of the death benefit before assign if you meet the requirements. I have found there are also some guaranteed approved life insurance plans available to seniors from insurers like Metlife and others.