Are You Uninsurable? Here's How To Get Life Insurance And Preserve Your Financial Safety Net

Everyone who is looking for life insurance coverage wants the most coverage for the least expensive cost. But anyone can be told that they are 'uninsurable' by a company, and this can happen for a number of reasons, including:

  • Family history of severe medical problems;
  • Risky occupation or regular participation in dangerous hobbies;
  • Diagnosis of a disease.

What many don't realize is that although one life insurance company may have said that they're insurable, this is not necessarily the opinion of all insurance companies. If you have a medical condition that one company has identified as the cause of your non-insurability, another company may be forgiving of the condition if it is 1. something that you can prove is controllable, and 2. You can prove you are taking steps to control it.

In order to be declared uninsurable, both you and your insurance agent have to agree that your health is barring your from successfully applying for coverage.

The Impaired Risk Specialist

Should you and your life insurance agent agree on your non-insurability, your agent may be able to help you by contacting an impaired risk specialist, who understands the ins and outs of the special coverage branch of the industry.

An impaired risk specialist will know which companies offer the most competitive prices for coverage, and so will do all of the shopping with the goal of finding the insurance company who can meet your unique and specific needs.  

If you aren't able to get coverage via an impaired risk specialist, you are not out of luck. There are several other ways to get the coverage you need.

Purchase Survivorship Life

This type of life insurance allows both you and your spouse to be insured under a single policy. The survivorship option will provide a death benefit when both spouses pass away. The beneficiary can then use part of these funds to pay estate taxes.

The reason survivorship life is a good option is because both parties are underwritten together, eliminating the risk of being deemed uninsurable. However, this type of coverage won't pay your spouse any benefit if you should pass away. But some companies do offer riders that can be added to a survivorship policy and split it into two individual policies without extra requirements.

The Guaranteed Issue Policy

The main reason that guaranteed issue policies work for those deemed 'uninsurable' is that no medical exam is required to get coverage. However, there is still a chance you can have your eligibility yanked, as you will have to answer some medical questions. Being careful about reviewing the benefit terms is a smart move when considering guaranteed issue policies, as a full benefit may not be paid out for some time after it's purchased. This could mean that your family receives only premium refunds or part of your policy's amount.

Get The Most From Group Life Coverage

If your employer offers group life insurance, you can likely max it out, as most policies of this type allow you to purchase more insurance out-of-pocket if coverage beyond the basic level is needed. Some group policies will require you to prove your eligibility if you want coverage that exceeds their set amounts. But if you can remain under that amount, you can enjoy getting the coverage you need at affordable group rates.

Your group coverage may also be able to be converted to individual permanent coverage without the need for any underwriting which can affect eligibility. Doing this can give you the security of being covered for life, even if circumstances see you leaving your current place of work.

The Affinity Plan

Life insurance coverage can also be had by applying for an affinity plan, usually offered by professional associations like a union. However, it may not be readily available in your area, nor will your premiums be affordable.

Possible Free Coverage

Finally, you may be able to get coverage at no cost, simply by adding a particular rider, called the Spouse's Paid-Up Insurance Purchase Option to your permanent policy. If you and your spouse are okay with benefits being paid out after you've passed away, all that's needed is to purchase a new policy on yourself within three months of your spouse passing away.  It's important to compare life insurance options in the event you are deemed uninsurable.

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