Life Insurance If You Have Diabetes, MS, Lupus, Heart Disease or Another Serious Illness

The National Funeral Directors Association reports the average funeral cost is nearly $8,000.1  

Of course you don’t want your spouse or family left with unpaid bills when you are gone.

But here is the problem.2

The average American family has $3,800 in the bank.

25% of households have no savings whatsoever.

If the average American family has $3,800 in the bank, paying for final expenses such as the funeral can create a large problem for your Can you get life insurance with your health history?spouse or family.

When cash in the bank is short, the obvious solution is life insurance.

However, in a recent study conducted by LIMRA3 the number of individuals owning life insurance is at a 50-year low.3   

 Only 44% percent of U.S. households have individual life insurance.

 So 56% of us have no individual life insurance.

The need is apparent so why don’t more Americans own enough life insurance?

One reason is the common perception that if you have an existing health condition you will not qualify for life insurance.

But that may not be true.

A few insurance companies specialize in life insurance for people who have not been blessed with great health.

Typically these policies are approved without a medical exam.   The application process is very quick; usually a short application and a ten minute confirmation phone call.

You may qualify even if you have been turned down by another insurance company.

What health conditions might be acceptable?  Here is a partial list:

  • ALS (Lou Gehrig’s Disease)
  • Aneurysm
  • Bipolar Disorder
  • Brain Tumor
  • Cancer
  • Cerebral Palsy
  • Cirrhosis
  • Colitis
  • COPD
  • Crohn’s
  • Declined by other companies.    You have been declined for coverage by a life insurance company
  • Diabetes even if you use insulin or have complications
  • Drug/Alcohol Abuse
  • Emphysema if you do not require oxygen
  • Epilepsy
  • Hazardous Activities or Hobbies
  • Heart, Artery, Circulatory Disease
  • Hemophilia
  • Home Health Care if you are not confined to bed or receiving hospice care
  • Liver Disease such as chronic hepatitis or cirrhosis
  • Lupus
  • Medical Tests recommended by your doctor but not completed
  • Multiple Sclerosis
  • Muscular Dystrophy
  • Neurological disorders
  • Parkinson’s
  • Schizophrenia
  • Sickle Cell Anemia
  • Transplant
  • Wheelchair use

Depending on your particular health history, your policy may have a level death benefit or a modified or graded death benefit.  Modified and graded death benefits are limited in the first two or three policy years.  Thereafter the full death benefit would be paid.  For an accidental death the full death benefit is paid from day one.

Not all applications are approved but there is no cost to apply.  If you need life insurance, you have nothing to lose by giving it a try.

There are some medical conditions that do make it less likely to qualify.

  • You are currently hospitalized
  • You are currently in a nursing home
  • You are receiving hospice care or have been diagnosed as terminally ill
  • You use oxygen
  • You have been diagnosed with Acquired Immune Deficiency Syndrome (AIDS) or AIDS Related Complex (ARC)

But if you cannot qualify for the life insurance described above, there is still hope. 

A handful of insurance companies sell guaranteed issue life insurance.  NO QUESTIONS ASKED.

Yes, no questions asked.  If you want it you can have it.

Guaranteed issue life insurance will have a graded or modified death benefit.  For the first two or three years the death benefit is limited.  Starting in the fourth year the full death benefit would be paid.  As described above, the full death benefit is paid from day one for accidental death.

With this information in hand, go talk with your insurance professional.  Don’t take no for answer.  Not all life insurance agents are familiar with these life insurance plans.  If the first agent you talk to cannot help, then try another one.




3.  2010 Trends in Life Insurance Ownership study, conducted every six years by LIMRA, Windsor, Conn.



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 Posted by at 9:32 pm