Understanding Life Insurance With Pre-Existing Conditions

High blood pressure raises the likelihood of heart attack and stroke. Most insurance companies will not deny coverage due to high blood pressure, but it can affect monthly premiums. Insurance companies calculate risk from high blood pressure differently, and some won’t count you as high risk if you keep your blood pressure low for 12 consecutive months. 

Nearly 11 million Canadians have diabetes or prediabetes, meaning that diabetes is one of the most common pre-existing conditions insurance companies encounter. If you have diabetes, you will be more likely to get coverage if you are not overweight, do not have insulin dependence, and do not have kidney damage.

Life insurance companies prefer to insure people who have lived with diabetes for more than three to five years. People who have had diabetes for a few years but are in decent health demonstrate they can responsibly manage their condition. 

Smoking is one of the most significant pre-existing conditions for life insurance. Smokers show a higher risk of heart attack and lung cancer and have a lower life expectancy than non-smokers. Several reports have shown that smokers, on average, pay anywhere between two to four times more than non-smokers for life insurance coverage. 

Most insurance companies require you to quit smoking for at least 12 months for them not to count it as a pre-existing condition. You might be able to reduce premiums if you show that you are taking part in a smoking cessation program. Our team has compiled some information on what the best life insurance policies for smokers are. Read about our top 3 picks here.

Cancer is another common pre-existing condition that insurance companies consider. Cancer treatments have significantly advanced in recent years, but many companies still consider cancer a high insurance risk. Insurance companies will be more likely to insure you if you have a highly treatable variant or if your cancer has been in remission for two or more years. This topic is explained in great detail by Insurdinary.ca.

Insurance companies will also ask if you have ever had a stroke or a heart attack. Your odds of coverage are higher if you did not sustain permanent damage and are otherwise in good health. You will also be more likely to get coverage if you have low blood pressure and cholesterol. The list of questions that an insurer will ask you when trying to acquire life insurance after a stroke is quite extensive. Learn more about what to expect from your insurer here.

Although there have been major advances in treatment, most insurers will still consider HIV or AIDS a pre-existing condition. Insurance companies are more likely to insure HIV-positive people if they have had the condition for at least three years and show that medication is effective at managing symptoms. 

Transplant patients can still get life insurance coverage even if they take immunosuppressant drugs. If you take good care of your body, get regular exercise, and eat healthy, you can increase the chances of approval and lower your rates. 

Some pre-existing conditions present more risks than others. For example, someone with arthritis will have an easier time finding coverage and will pay lower premiums than a smoker with lung issues. Insurance companies are less discriminating with conditions that don’t statistically lower life expectancy.  

Having good current health can maximize your chances of coverage. If you are proactive about your condition and take steps to manage it, you can reduce a large amount of risk. 

Generally, you are riskier to insure the longer it has been since your diagnosis. Some exceptions exist to this rule, however. In some cases, if you have had a condition for more than three years and are in good health, insurance companies will take that as a sign that you can responsibly manage your condition. 

Younger people will have an easier time finding life insurance coverage, even if they have a pre-existing condition. If you engage in high-risk behaviours, like drinking or recreational drug use, you may have to pay higher monthly premiums. 

Term life insurance is one of the most common types of life insurance in Canada. Term policies provide coverage for a specific timeframe, and you pay a monthly premium to keep the policy active. Term life insurance policies can range anywhere between five and 30 years, but most are ten to 20 years. 

Term policies are easy to understand and have predictable premiums. If your pre-existing condition is not likely to cause medical problems during the term, you are more likely to qualify with a reasonable rate. 

Permanent life insurance provides lifelong coverage as long as you continue to pay the premiums. Permanent life insurance is for people with no or minor pre-existing health conditions, like well-managed blood pressure. If you qualify for permanent insurance with a pre-existing condition, it will be a rated policy with high monthly premiums. 

Simplified life insurance provides coverage without having to take a medical exam but includes a medical questionnaire. Simplified life insurance is easier to qualify for than term or permanent insurance, so it is a viable option if you have a pre-existing condition. 

The downside is that simplified policies usually have lower coverage limits and higher premiums. You can also fail to qualify if you have significant complications from pre-existing conditions. Note that you may still have to pay higher premiums for a rated policy if you qualify. 

Guaranteed life insurance provides a guaranteed death benefit and does not require a medical exam or a health questionnaire. You can qualify for a guaranteed life insurance policy regardless of your or your family’s medical history. Because of the increased risks, guaranteed policies have low limits—about $25,000 to $50,000.

The upshot is that you get a guaranteed payout if you die. Keep in mind that many guaranteed life insurance policies have a one- to two-year buffer period after purchasing before coverage goes into effect. 

• Stay healthy. You can proactively manage many pre-existing conditions and reduce mortality risks by staying active and healthy. Insurance companies are more likely to provide coverage if you manage your conditions and are otherwise in good health. If you smoke, you should quit to further reduce premiums. 
• Consider no-medical life insurance. If you cannot get a standard policy, consider applying for no-medical or guaranteed life insurance. These policies don’t require a medical exam, so you can get coverage even if you are in poor health. 
• Buy young. The best way to get coverage with a pre-existing condition is to buy a policy when young. Pre-existing conditions are not as significant for young people, so you are more likely to get coverage. 
• Ask for a reevaluation. If you currently have a policy, you can request a new medical exam to demonstrate improvement. A reevaluation could secure you a lower premium rate. 
• Work with an insurance broker. A qualified insurance agent can help you find policies that will accommodate your pre-existing condition for a reasonable rate. Working with an agent can reduce the number of application denials you receive.