Will My Health Affect My Life Insurance?

The process that life insurance companies use to determine rates is known as underwriting. This involves the calculation of the overall risk of the company having to pay out a claim. One of the biggest factors considered in the underwriting process is the health of the policyholder. The professionals at Pete Webb Agency of Fredericksburg, VA are here to answer any questions you have about the underwriting policy.

Current Health Status

Regardless of whether you have had a condition your whole life or something new is affecting your health, your life insurance policy will be impacted. Some conditions that will have the greatest effect on your life insurance include diabetes, asthma, high blood pressure, heart disease, mental illness, and sleep apnea. In some cases, if you are able to prove that you are taking steps to improve your current health status, you may have the option to reduce your premium.

Pre-Existing Conditions

The term pre-existing condition refers to a health issue for which you received a diagnosis prior to applying for life insurance. Pre-existing conditions can affect your options for coverage. While you will not be automatically denied coverage, you can expect limited choices and higher rates.

Typically, applicants are grouped into rate classes based on health, such as super preferred, preferred, and standard. The exact terms used may vary from one insurance provider to the next. This is the system used to categorize risk associated with insuring you according to your health status.

People with serious health conditions will usually fall into the standard rate category. The reason for this is that a pre-existing health condition may lead to unexpected or early death, which is a greater risk for the insurer. Therefore, the cost of a life insurance policy will be higher.

If you have questions about the effect your health has on your ability to purchase a life insurance policy, contact Pete Webb Agency of Fredericksburg, VA. Call us today.