LifeNet Solutions Blog

When You Can't Buy Affordable Life Insurance

Posted by Lenny Robbins on Nov 27, 2012 12:49:00 PM

when you can't buy affordable life insurance can you be covered?Have you ever waited too long to buy something and found out it was too late? I think we all hate when that happens, I know I do!  Everyone wants to get the most affordable insurance possible, but shopping around too long can have consequences.  Insurance agents get inquiries all the time from people who waited too long.  Here are some typical situations when you not only can't buy affordable life insurance, you can't buy life insurance at all:

You are Diagnosed with a Major Illness

A healthy, active, sixty year old woman went in to see her doctor because of stomach pain and loss of appetite. She thought she might have an ulcer or something like that. Unfortunately, her tests showed a growth in her stomach which turned out to be malignant (cancer). 

Sometimes, even routine examinations reveal we have a serious illness. If you don't already have life insurance, you may find that trying to get affordable life insurance when you are diagnosed with a major illness is impossible. More likely, you will find that you probably will not be able to get life insurance at all.

When you are first diagnosed with a major health condition such as cancer, certain heart issues, HIV, Alzheimer's, Dementia, cirrhosis of the liver, COPD, etc. you will be an automatic decline.  Depending on the issue, treatment and prognosis you may be able to get coverage after a period of time.  However, this health issue will increase the cost of your insurance. 

It's no surprise that the best time to get affordable insurance is when you are healthy!

You are Scheduled for a Medical Procedure

Often, routine medical tests like a colonoscopy motivates us to get serious about finally getting that affordable life insurance we've been thinking about. However, if you are scheduled for a medical procedure, even a routine test like a colonoscopy, a life insurance company will usually postpone your application.  Especially if anesthesia is involved, they will ask you to wait until the procedure is over.

Assuming the test/procedure has normal results, this probably won't affect your premium.  However, if your routine colonoscopy found colon cancer, you aren't going to get insurance for the price you want. 

We had a client who was rated preferred (the second best underwriting category).  He had let his insurance lapse (accidentally) and we were applying for a new policy.  He was going to have a routine heart assessment because there were many people in his family with heart problems.  He was having these tests to have a baseline to compare to in the future.

Although we asked him to postpone the testing until after his life insurance was in force he decided to go ahead with the tests.  Well, unfortunately, they found heart problems and he might get coverage at Table 5-6.  That coverage would cost more than double the cost of insurance at a preferred rate.  Suffice it to say, he was priced out of his insurance for a "routine" test. 

If your doctor tells you a test is required- NOT ROUTINE- the insurance company will postpone until you have the test and they can get the results. Tests scheduled for any reason other than routine (like colonoscopy at age 50, etc.) must be completed before underwriting.

You are Traveling to Dangerous Countries

If you are traveling to a country on the State Department's travel warning list, a life insurance company will delay your application until your trip is over. They are very concerned about safety in these countries. 

In fact, if you regularly travel to one of these countries, you may have trouble getting life insurance.  If you travel regularly for business (or pleasure) your application probably will be declined.

You are in a Hospital, Hospice or Nursing Home

Sometimes, as children are caring for their elderly and ailing parents, they realize that their parents do not have life insurance to even cover burial costs.  Too late.  If your elderly loved ones are under full-time medical care, or have dementia or Alzheimer's they probably can't get life insurance.

The Bottom Line

If you wait to buy life insurance, many things can happen to make it TOO LATE for you. Don't delay. Talk with an independent agent to find out how you can get affordable life insurance.  Don't wait for something to happen which makes life insurance too expensive, or impossible to get.

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