Life insurance is a crucial financial safety net, providing peace of mind that your loved ones will be protected if the unexpected happens. However, for millions of Americans with pre-existing medical conditions, securing this protection might seem out of reach.
The good news is that pre-existing conditions don't automatically disqualify you from coverage. While this can affect your options and premiums, many of our best term life insurance providers offer policies tailored to various medical situations.
This guide will walk you through securing life insurance with a pre-existing condition, from understanding eligibility to finding affordable coverage.
Key Insights
You can get a life insurance policy even with a pre-existing medical condition with some insurers
There may be coverage limits on life insurance policies due to an existing health condition—and you may pay higher premiums
Guaranteed issue and group life insurance policies don’t exclude those with pre-existing medical conditions in most cases
What Is a Pre-existing Condition?
A pre-existing condition is any significant medical condition or chronic illness that exists before you apply for life insurance coverage. Insurance companies focus particularly on conditions that could affect life expectancy or quality of life. Common pre-existing conditions that insurance companies consider include:
Amyotrophic Lateral Sclerosis (ALS/Lou Gehrig's disease): A progressive nervous system disease
Cancer: Including both active cases and history of cancer
Cardiovascular conditions: Such as heart failure, previous bypass surgery, or heart transplants
Chronic illnesses: Including diabetes, multiple sclerosis, and rheumatoid arthritis
Mental health conditions: Such as bipolar disorder, schizophrenia, depression, and post-traumatic stress disorder (PTSD)
Neurological disorders: Including Parkinson's disease and traumatic brain injury (TBI)
Blood disorders: Such as sickle cell anemia
Other chronic conditions: Including epilepsy, chronic fatigue syndrome, and sarcoidosis
Insurance companies evaluate pre-existing conditions through their life insurance underwriting process, where trained professionals assess the level of risk each applicant presents. This evaluation determines both eligibility for coverage and premium rates. Underwriters typically assign applicants to different rate classes:
Preferred: Best rates for the healthiest applicants
Standard: Average rates for typical health profiles
Substandard: Higher rates for increased health risks
While having a pre-existing condition may lead to higher premiums or, in some cases, coverage denial, many insurers offer specialized policies for various medical conditions.
The key is understanding how your specific situation affects your insurance options and working with providers who have experience covering similar health profiles.
Challenges for People with Pre-existing Conditions in Getting Life Insurance
Securing a life insurance policy at a reasonable rate can be difficult if you have a pre-existing medical condition. Here are a few challenges you might face when searching for a policy:
Increased premiums: If you have a pre-existing medical condition, you might face higher premiums than a comparable “healthy” applicant.
Denial of coverage or limited options: Some insurers will evaluate your medical condition and deny coverage altogether. If a policy is available, it may have low coverage limits and high costs.
Possible exclusions or waiting periods: If you qualify for a life insurance policy with a pre-existing medical condition, you may still be subject to policy exclusions during waiting periods. For example, If you were diagnosed with diabetes, your policy may not cover a death due to complications from your diagnosis.
High-risk classification: If you have a pre-existing medical condition that an insurer deems risk, you could be classified as “high risk” when you apply. This may be shared with the MIB Group insurance database and shared with other insurance companies—making it more difficult to secure a policy.
How Much Does Life Insurance With a Pre-existing Condition Cost?
The cost of life insurance policies with a pre-existing medical condition will vary based on your health condition, the type of insurance policy, and the amount of coverage you are applying for. If you have a pre-existing condition, you may end up paying much higher rates than those without a health condition.
It’s important to compare life insurance rates to ensure you’re getting a fair and affordable price for your coverage. And if you have a group policy through work, your employer may even cover the entire cost of your policy.
Types of Life Insurance for People with Pre-existing Conditions
Several types of life insurance policies are available if you have a pre-existing medical condition, each with distinct advantages and limitations:
Traditional Life Insurance
Term, whole, and universal life insurance policies may be accessible even with pre-existing conditions, though approval depends on the underwriting process.
While these policies offer the most comprehensive coverage, you may face higher premiums or coverage limitations based on your health status. The advantage is they typically provide the highest coverage amounts and most flexible options.
Guaranteed Issue Life Insurance
Guaranteed issue policies offer certain approval regardless of medical history—making them ideal for those with severe conditions who can't qualify for traditional coverage. These whole-life policies typically:
Provide coverage up to $25,000
Require no medical exam or health questions
Have higher premiums due to guaranteed acceptance
Include a waiting period before full benefits apply
Simplified Issue Life Insurance
Simplified life insurance is a term life policy that allows you to apply online and get a policy within a few minutes. You’ll answer a health questionnaire and submit personal information to apply—and receive a decision immediately.
The downside is that these policies typically exclude those with pre-existing conditions—or have limited coverage options. However, if you don’t fully disclose the details of your pre-existing condition, you may risk having your claim rejected in the future.
Group Life Insurance
Available through employers, group policies offer several unique benefits:
No medical exam requirements
Coverage, regardless of pre-existing conditions
Employers often subsidize premiums
Coverage typically up to 1-2 times your annual salary
Keep in mind that group coverage generally ends if you leave your employer, and the coverage amounts may not be sufficient for your full insurance needs. Consider it as a foundation that can be supplemented with individual coverage.
Tips for Getting the Best Life Insurance Rates with Pre-existing Conditions
Finding affordable life insurance with a pre-existing condition requires careful strategy and preparation. According to financial advisor Ryan Cravitz, CFP®, the key is partnering with an experienced independent broker who thoroughly understands various insurers' underwriting guidelines.
A skilled broker will conduct a detailed health assessment, asking specific questions about your condition's history, treatment, and management to match you with the most favorable insurance provider.
For example, if you have diabetes, expect questions about:
Type 1 or Type 2 diagnosis
Date of diagnosis
Current A1C levels
Treatment history and compliance
Related health complications
Lifestyle management strategies
To maximize your chances of securing favorable rates, you can try these tips:
Provide complete health information: Always be transparent about your medical history—withholding information could lead to claim denials and policy cancellation.
Compare multiple insurance providers: Different companies specialize in different conditions, so rates can vary significantly.
Work with experienced professionals: Seek brokers who regularly handle high-risk cases and understand which insurers are more lenient with specific conditions.
Research underwriting practices: Some insurers have more favorable policies for certain conditions, and identifying these companies can save you money.
Consider policy enhancements: Explore riders that provide additional benefits tailored to your condition, such as critical illness coverage.
Stay persistent: If one insurer denies coverage, others may offer alternatives. Consider guaranteed-issue policies as a backup option.
Remember that demonstrating responsible management of your condition through regular medical check-ups, medication compliance, and lifestyle modifications can significantly improve your chances of approval and better rates.
Bottom Line: Getting Coverage Isn't Impossible
Living with a pre-existing condition presents unique challenges in securing life insurance. However, several life insurance companies offer policies tailored to specific medical conditions.
Consider using our life insurance calculator to determine how much coverage you need. With proper research and guidance, you can find the right coverage to meet your needs.
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