Applying for a life insurance policy is highly beneficial to the family and dependants of the holder since it secures their future and keeps them safe from having to suffer hardships after the death of their benefactor. However, it’s important for applicants to know how exactly they could be paying more for a policy than their peers despite having the same life insurance provider. This is because health conditions that applicants may suffer from can influence the rates that they will be offered.
The changes that came with the Affordable Healthcare Act have benefitted individuals with health insurance by prohibiting insurance providers from refusing to cover applicants with pre-existing health conditions. The same change has yet to be implemented in the life insurance industry. Insurance providers still check the medical history and current health to check whether an applicant suffers from a pre-existing condition. This helps them calculate an average life expectancy based on health conditions to determine what rates they should charge the applicant.
Candidates that don’t suffer from any pre-existing health conditions are offered the most affordable rates from life insurance providers. This is because they are not risky to cover and will have higher life expectancies unlike people with health complications that are charged higher premiums. Applicants that insurance providers think are too risky to cover will be denied from receiving any coverage. Read more about how pre-existing conditions affect your quote here.
The reason behind an insurer’s inquiry as to your health is that their main point of focus is your life expectancy. How long you’ll live and generate premiums has an impact on life insurance providers. Knowing that an applicant suffers from a chronic illness or condition can make them reluctant to offer coverage. This doesn’t mean that it’s impossible because even though it’s expensive, life insurance policies will still be available to you but prepared to pay more. Take a quiz to test if you know how pre-existing conditions can affect your policy rates. Visit the HealthIQ website to learn more about life insurance and how to get affordable rates.