Brandon LaughridgePresident, PolicyZip LLC

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Most Recommended Life Insurance Companies

Below are the life insurance companies we recommend most to our customers due to their strong financial strength, history of strong claims paying ability, years in business, and competitive rates.

  1. Mutual of Omaha
  2. Lincoln Financial Group
  3. Prudential

Yes, we can shop many companies, but we believe in working with proven, trusted brands that help us preserve our customer relationships.

Life Insurance with a Pre-Existing Conditions

Life insurance policies may well be the most important part of your portfolio, because they provide a financial umbrella that can protect your loved ones at a time when they will need it the most.  All smart financial planning includes a life insurance component, and dollar for dollar, it is one of the wisest investments you can make.

Life insurance is simply a contract between an insurance company and a policy holder to provide a lump sum payment to a designated beneficiary when the policy holder dies.  The policy holder pays premiums to the insurance company in exchange for the financial protection that life insurance provides.

There are many types of life insurance policies that can provide peace of mind for a variety of life’s circumstances.  The two most common are term life insurance and whole life insurance. You may also want to consider a cheaper alternative, like burial insurance, also known as final expense insurance.

Term Life Insurance Policy

Term life policy gives you coverage for a specified length of time, generally in five-year increments ranging from 10 to 30 years.  Rates that you pay remain fixed for the length of the term and cannot be changed.

When the term ends, there are no more obligations on either side, and the policy simply expires.  In many instances, life insurance companies will offer a policy holder a new policy, but with different premium amounts because the holder is now anywhere from 10 to 30 years older.

Whole Life Insurance Policy

Whole life is permanent and the policy remains in force until a person dies, as long as premium payments are kept current.  Premiums are generally higher for whole life policies because the term can be longer and unpredictable.  But just like term insurance, the premium costs remain fixed for the life of the policy.

Whole life offers a big advantage over term life in that a portion of the premium is put into an account and starts to accrue interest, building tax-deferred savings along the way.  Over time, this serves to increase and diversify a person’s investment portfolio.

Other types of life insurance policies have been designed to meeting the varied needs of policy holders.  Some of them include:  decreasing term life insurance; annual renewable term insurance; mortgage life insurance; credit life insurance; and, key man insurance.

Life Insurance Underwriting Process

Life insurance companies use a number of variables to determine a person’s “class” that they will be put into.  The class determines how much a person’s premium will be and how much life insurance they will qualify for.

Some of the more important variables that life insurance companies use are:

  • Medical records
  • Physical exam results
  • Age
  • Occupation
  • Family history
  • Smoker or non-smoker
  • Drinking habits
  • Gender
  • Driving record
  • Credit history

Can I get life insurance with a medical condition?

Yes, but it may affect the type of life insurance you are able to purchase, coverage amount / death benefit, and potentially trigger higher premiums.

One of the more important variables that life insurance companies consider are high risk health problems for those with a past medical history.  Very few people enjoy optimal health, and there are always conditions that keep people from this goal.   Some of these conditions are more serious than others, and can impact a person’s ability to secure a life insurance policy.  While there are many such high risk conditions, a few of the more notable ones include:

Upon qualifying as part of the life insurance application process, after a medical exam and a determination of pre-existing health issues, they are placed into a formal classification ranging from Preferred Select to Standard Smoker.  Being placed into one of these classifications will determine how much of a premium a person has to pay for their life insurance coverage if approved, or if they will have higher rates.

Life insurance health classifications

  • Preferred Plus Non-Tobacco
  • Preferred Non-Tobacco
  • Standard Plus Non-Tobacco
  • Standard Non-Tobacco
  • Preferred Tobacco
  • Standard Tobacco
Those people who don’t fit into the common classifications are given what is known as a table rating.  Table ratings are usually assigned due to health or lifestyle issues, and most always result in a bump up in the amount of premium a person has to pay for coverage.  Some insurance companies may negotiate a table rating with a potential policy holder, and others may remove a table rating altogether if a person’s condition improves sufficiently.

Those people who cannot obtain a life insurance policy due to health or other issues may look into getting a guaranteed issue life insurance policy.  For this type of policy, there are no physical exams, but benefits are highly restricted for the first two years the policy is in place.  In addition, policy amounts are relatively low, generally not more than $25,000.

Through a nationwide association of life insurance advisors, PolicyZip can help you find the exact policy that’s right for you, whether you are in perfect health, or you are facing challenging health conditions.  We can take the guesswork and the legwork out of finding exactly what you need for you and your family’s financial protection.

Learn more about Life Insurance or start your quote by completing a quote request.