At times you or a family member may have a disability or a medical condition that makes obtaining life insurance difficult to get. Fortunately, there are alternatives available, such as:
These will be discussed in greater depth in the sections that follow.
Many employer's group plans offer group coverage, which means you may qualify for coverage simply as a consequence of being included in the group that is covered. This may help to avoid the health-based disqualification that individual policies may be subject to. There are several things you can do to take advantage of this opportunity:
Guaranteed issue life insurance is a policy that provides benefits to a named beneficiary upon the insured’s death. The insurance company will offer it to an applicant regardless of health; however, because of this, the premiums tend to be higher than for typical life insurance.
So, the advantage is that these policies don't usually require completion of a health questionnaire or medical exam. Unfortunately, there are some disadvantages, such as:
A simplified issue life insurance is a policy that is intended to be very simple. This means you answer a few questions about your medical history for the life insurance application, rather than undergoing a medical exam. Coverage is generally higher and premiums lower than for guaranteed issue policies.
With any life insurance application, full disclosure of medical conditions and treatments is required. Claims can be, and are, denied due to non-disclosure of a pre-existing medical condition.