Life insurance refers to a contract between the policyholder and the insurer. It also comes with specific terms and conditions that need to be met to get the coverage like any contract.
Buying life insurance for someone with a medical condition can be complicated. If you do not read the fine print and comply with the terms and conditions, you might not get the benefits you are assured as a policyholder.
Read the Terms and Conditions
Gary P. Cubeta from Insurance for Final Expenses says that the Global Life insurance reviews mention general terms and conditions of life insurance policies. It would help if you spent time and effort understanding each term and condition mentioned in the policy document. If you cannot understand any specific condition, ask the insurance agent to explain it in detail.
It is necessary because there is a possibility the insurance policy does not cover any medical condition that runs in your family. In that case, the beneficiary will not get the financial protection assured by the insurer.
Understand How Insurance Rate Increases
According to Gary P. Cubeta from Insurance for Final Expenses, the Global Life insurance reviews mention policies that begin with a $1 premium for the 1st month. You should not get carried away by such marketing gimmicks and read the fine print to know how the insurance rate will increase over time.
In general, the actual rates of insurance policies start after the first 30 days expire. The policy document will mention how much you have to pay every month for the life insurance coverage. According to insurance experts, the rates generally increase after every five years.
Find Out What Is Excluded
Insurance companies have a list of pre-existing conditions for which life insurance coverage is not provided. If you have such medical conditions, you need to mention them to the insurance advisor or the agent selling you the insurance product.
It is not wise to hide such information because if you are hospitalized for any pre-existing condition, the insurance company will refuse to cover the treatment for such conditions. There is a possibility the insurance rates may also increase due to pre-existing conditions.
What Does No Medical Exam Mean?
Many insurance companies use “No Medical Exam” as a USP to sell their insurance products. It means you will not be required to undergo a medical examination before policy approval. Instead, you will have to answer a series of health questions that will be used to determine your eligibility for the coverage. The information given by you will also be used to determine insurance rates.
What Are the Health Questions?
The insurance advisor will provide you with a questionnaire that lists health-related questions. You are expected to answer these questions honestly and not conceal any health-related information that is crucial to determine the type of life insurance coverage.
The health-related question is generally related to hereditary conditions like diabetes, heart problems, or kidney problems. You might be asked to provide details about the illnesses or hospitalizations in the past three years.
Some policies also allow you to purchase coverage for your children. In that case, you have to answer health-related questions for your children. You are generally asked to provide the list of medications you take to determine medical conditions. You need to read these questions carefully, answer them honestly, and let the insurance company decide whether to offer life insurance coverage.
Due to intense competition in the insurance sector, you will find many insurance companies offering life insurance coverage to the elderly and people with medical conditions. You need to be alert when choosing such life insurance products and make sure it does not have any terms or conditions that will allow the insurer to deny financial assistance to your loved one after you leave this world.