For someone with health problems, shopping for life insurance can be a discouraging experience. Sometimes companies decline outright to offer coverage. Other times they offer a policy, but at a high price. But by finding the right company, one that specializes in "impaired risk underwriting," it is still possible to find insurance at a reasonable cost. Some companies even specialize in insuring those with a specific health condition.
Considerations
Factors that may prompt an insurance company to reject an applicant or charge a higher premium include health risks such as heart disease, diabetes or a history of cancer. Tobacco usage can also be an issue. Non-medical risks such as careers in aviation, scuba diving and frequent overseas travel can play in, too.
Classification
Insurance companies set your life insurance premiums based on your age, the length of the policy term and your "risk class," according to Insure.com. In determining your risk class, insurance underwriters examine such factors as income, lifestyle, medical history of the applicant, medical history of the family and dangerous occupations or hobbies. The commonly used risk categories, according to Insure.com, are, from lowest premiums to highest: Preferred Plus No Nicotine, Preferred No Nicotine, Preferred Nicotine, Standard No Nicotine, Standard Nicotine and Substandard.
Warning
Even if they shop around, some people will find that they are still "uninsurable." A few situations that can potentially--but not necessarily--put you into this category are, according to Insure.com: a heart attack within the past six months; a bankruptcy that has not yet been discharged; currently being on probation or parole; and having attempted suicide within the past two years.
Soultions
If you have looked for a life insurance policy and have not found one you can afford--or even if you have been turned down and been deemed uninsurable--you still have options for obtaining coverage. If your employer offers life insurance, you can generally get up to a certain amount regardless of any health conditions. The disadvantage here is that the amount is usually limited to a "low multiple" of your salary, according to Insure.com.
Survivorship Policy
You could also buy a survivorship policy that insures both you and your spouse but pays out only after you both have died. For these policies, one of the spouses can generally be "uninsurable." Also available are "guaranteed issue" policies. They do not require a medical exam. But they typically carry high premiums and low--$25,000 or less--policy amounts.
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