Can You Get Life Insurance With Pre-Existing Conditions? Yes, Here's How
Securing life insurance with pre-existing health conditions may seem daunting. With nearly half of Canadians managing chronic illnesses, many worry about coverage denial.
Whilst conditions like diabetes or high blood pressure might make you doubt your eligibility, the truth is more encouraging. Many Canadians with pre-existing conditions successfully obtain life insurance, with approval rates around 70% for fully underwritten policies.
Moreover, guaranteed life insurance exists specifically for those with medical concerns.
Having a pre-existing condition doesn’t mean automatic rejection. Insurers assess each application individually, considering condition severity, treatment history and overall health. Alternative options like simplified issue or no-medical policies are also available.
Can you get life insurance with a pre-existing condition?
Many worry that health issues will prevent them from securing life insurance. However, medical conditions don’t automatically disqualify you from coverage.
What counts as a pre-existing condition?
A pre-existing condition is any health issue present before applying for life insurance. Common conditions include:
Diabetes
High blood pressure
Depression, anxiety or other mental health conditions
Heart disease
Asthma
Sleep apnea
Why insurers care about your health history
Insurance companies evaluate medical histories through “medical underwriting” to assess coverage risks.
During underwriting, insurers gather health information, including past illnesses, surgeries, treatments, and family history, to assess applications and set premiums.
Your health directly impacts life expectancy, so insurers review medical records to evaluate current health and potential longevity risks. This helps them calculate appropriate premiums.
Complete honesty is vital. Non-disclosure of conditions can result in claim denials or policy cancellations.
Common myths about being denied coverage
Myth 1: Pre-existing conditions prevent insurance approval. False. Many insurers offer suitable options.
Myth 2: Health impairments make insurance unaffordable. Incorrect. Controlled conditions may only slightly increase premiums.
Myth 3: All pre-existing conditions are equal. Insurers evaluate each condition uniquely, considering severity and management.
Myth 4: Initial denial means permanent ineligibility. Different insurers have varying criteria. Brokers can help find suitable coverage.
Alternatives include simplified issue, guaranteed issue, or employer group coverage.
How insurers evaluate your medical condition
When assessing pre-existing conditions, insurers use underwriting to determine risk levels and premiums.
Severity and stability of the condition
Insurers examine condition severity and stability. Well-managed conditions minimally impact premiums, while severe cases may increase rates significantly.
Insurers categorise applicants by risk level.
Preferred risk: Healthy individuals with no or minor medical conditions
Standard risk: People with manageable pre-existing conditions
Substandard risk: Those with serious or poorly controlled conditions
Treatment and medication history
Your prescription history reveals your health status and condition severity. Insurers review medication types, dosages, duration, and reasons. Medications for serious conditions like heart disease or diabetes warrant closer examination.
Insurers assess what prescriptions indicate about underlying health. Consistent treatment adherence can positively impact coverage eligibility.
Time since diagnosis
Diagnosis duration influences application outcomes. Recent diagnoses may increase premiums, while well-managed chronic conditions could reduce rates.
Cancer survivors typically face 2-5 year waiting periods post-treatment. Longer remission periods improve approval chances.
Related health risks
Insurers evaluate complications and concurrent health issues. Multiple conditions can increase risk assessments. Family medical history, particularly regarding similar conditions, is considered.
Lifestyle and overall health
Insurers assess your complete health profile and lifestyle choices. They examine:
Blood pressure and cholesterol
BMI and weight
Smoking status
Alcohol consumption
Exercise habits
High-risk activities
Proper condition management through treatment, check-ups, and healthy lifestyle choices can improve coverage options.
What types of life insurance are available with pre-existing conditions
Several insurance options exist for those with health conditions. Each type serves different needs.
Term life insurance with medical underwriting
Term life insurance provides coverage for a set period—typically 10, 20, or 30 years. With pre-existing conditions, approval depends on severity and management.
A medical exam is usually required. Those with minor health issues may pay slightly higher premiums, but insurers often approve well-managed, stable conditions.
Simplified issue life insurance
Simplified issue life insurance requires health questions but no medical exam, offering a middle ground for those hesitant about full medical underwriting. It typically provides better coverage and rates than guaranteed policies.
Guaranteed life insurance (no medical)
Guaranteed issue life insurance accepts all applicants regardless of health history, with no medical requirements. It’s ideal for those denied elsewhere. Request a free non-medical life insurance quote today. Note the typical two-year waiting period.
Joint life insurance for couples
Joint policies cover two people under one plan. First-to-die policies pay upon either partner’s death, while last-to-die policies pay after both deaths. A healthier partner may help offset the other’s condition.
Steps to improve your chances of approval
When applying with pre-existing conditions, careful planning is essential.
Be honest and complete in your application
Transparency is crucial. Withholding health information can void your policy and deny benefits to beneficiaries under contract law.
It might be tempting to omit minor conditions or past health issues. However, insurers have access to medical databases and will likely uncover any omissions during review.
Work with a specialised insurance advisor
Insurance brokers specialising in high-risk cases can improve your chances of finding coverage. They understand which companies accept specific medical conditions and can assess your situation at no cost, as they earn through provider commissions.
Apply early before conditions worsen
Timing is crucial. Younger applicants face better approval odds, as health complications often increase with age. Most insurers prefer seeing two years of stable health before approving applications.
Manage your health and reapply later
Insurers value applicants who actively manage their health. Regular doctor visits, medication compliance, and lifestyle improvements can strengthen your application. If denied, consider reapplying after documenting health improvements.
What to do if you’re denied life insurance
A denial isn’t final. Many applicants eventually secure coverage.
Try a different insurer
Each company evaluates medical conditions differently. With approval rates around 70%, what one insurer deems risky, another might accept.
Consider no medical life insurance
Guaranteed life insurance accepts you regardless of your health history, with no medical questions or examinations required. However, these policies typically include a two-year waiting period before full benefits begin. Request a free non-medical life insurance quote today to explore options from providers specialising in higher-risk cases.
Understand the reason for denial and appeal
Review your denial letter carefully to understand their decision. You have the right to appeal, and consulting a life insurance lawyer can help you navigate the process and gather appropriate evidence.
Conclusion
Having a pre-existing condition doesn’t prevent you from protecting your loved ones. While traditional policies require medical underwriting, alternatives like simplified issue, guaranteed issue, and group policies exist for those with health concerns.
Be honest about your medical history to ensure appropriate coverage. Even after rejection, many secure coverage through different providers or specialised policies.
At Maple Bay, we understand the challenges of finding life insurance with pre-existing conditions. As insurance brokers, we work with multiple providers to find suitable coverage options.
For personalised guidance, contact our team at Maple Bay Insurance. We’ll help you find the right policy for your situation.