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Information about all aspects of finances affected by a serious health condition. Includes income sources such as work, investments, and private and government disability programs, and expenses such as medical bills, and how to deal with financial problems.
Information about all aspects of health care from choosing a doctor and treatment, staying safe in a hospital, to end of life care. Includes how to obtain, choose and maximize health insurance policies.
Answers to your practical questions such as how to travel safely despite your health condition, how to avoid getting infected by a pet, and what to say or not say to an insurance company.

Life Insurance: How To Buy Despite A Health History

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While purchasing life insurance after a diagnosis can be difficult, it is not impossible.

Alternatives, which are discussed in the other sections of this article, include:

  • Searching with a life insurance broker or on your own for life insurance that may be available in your state or a nearby state or a state to which you easily travel. 
    • Depending on your health history, you may qualify for standard issue life insurance - possibly with a higher than average ("Rated") premium. 
    • If you do not qualify for a standard issue policy, you may be able to obtain a simplified issue policy (only a few questions are asked) or guaranteed issue policy (where no questions are asked.)
  • Obtaining life insurance through work, either during an open enrollment period at your current job or going to work for another employer who offers life insurance. (For more information about changing jobs after a diagnosis, see Changing Jobs)
  • Through a partner or spouse.
  • By joining an organization that offers life insurance to members such as a fraternal organization or an organization for members of the same profession.
  • Credit life, both in the form of credit insurance and mortgage life insurance.

If You Are Recently Diagnosed, In Treatment, Recently Post Treatment or HIV Positive

  • It is preferable not to submit a life insurance application and have it rejected. The information will be on the insurance company's records, and will likely be reported to the Medical Information Bureau. Either work with a broker you trust or don't provide identifying information unless and until you actually decide to apply.
  • Brokers are trained to get as much information from you as possible. If you are asked for information you are not comfortable providing, consider answering by indicating: "I'm getting information for a friend," or "I'd rather not give that type of information at this time."
  • One way to encompass the situation without revealing your health condition or identity is to let the person know that you are interested in purchasing life insurance with no medical exam. Alternatively, you can ask if the broker has any Guaranteed Issue or Simplified Issue policies.
  • If the broker says that he or she does have such products, ask for an application for each different company. You can then see whether the application asks if you have been diagnosed, and otherwise whether you can honestly answer the questions in a positive manner. Be careful of broad questions such as: "Have you seen a doctor in the last 5 years for any condition not mentioned above?"
  • NOTE: Be careful of life insurance brokers who are more interested in their commission than taking care of you. A commission can be as high as an amount equal to 100% of the first year's premium for a life insurance policy.

If You Are A Longer Term Survivor (and not HIV Positive)

  • Thanks to medical advances, there are now several life insurance companies that will write life insurance policies for people who have a history of a health condition which is not active. The policies may be more expensive than for a person of your sex and age with no health history.
  • Without divulging your correct name, or divulging your name but asking the broker not to divulge it to the insurance company without your permission, you can tell a broker about your health history and ask:
    • What kind of life insurance coverage he or she has available for you.
    • The maximum death benefit.
    • The cost.
    • Whether there are any particular underwriting criteria the insurance company uses. ("Underwriting" is what the insurance company does when it looks at an applicant's particulars and determines whether it will issue a life insurance policy and, if so, for what cost.)
  • If no policies are available because of your health history, or if they are too expensive, ask if there are life insurance policies available with no medical exam. Alternatively, you can ask if the broker has any Guaranteed Issue or Simplified Issue policies.
  • If such policies are available, ask for an application for each different one. You can then see whether the application asks questions you can honestly answer in a positive manner. Be careful of broad questions such as: "have you seen a doctor in the last 5 years for any condition not mentioned above?"
  • Be careful of life insurance brokers who are more interested in their commission than taking care of you. A commission can be as high as an amount equal to 100% of the first year's premium for a life insurance policy.
  • It is preferable not to submit a life insurance application and have it rejected. The information will be on the insurance company's records, and will likely be reported to the Medical Information Bureau. Either work with a broker you trust or don't provide identifying information unless and until you actually decide to apply.

Where To Apply For Life Insurance

Life insurance can be purchased in any state in which you sign the application. It is a myth to think that life insurance can only be purchased in the state in which you live. As a general matter, you only have to be in a state at the time you sign the application. The life insurance company cannot solicit a purchase, or do business, in a state in which it is not registered. That doesn’t make it illegal for people to cross a state border to purchase a life insurance policy on your own volition.

While this may be legal, a life insurance company may have a company standard to the effect that it will not sell policies to people who do not live or work in the state in which the policy is issued. If you tell the truth on the application, the worst that would happen is the company would refuse to issue the policy or it would refuse to pay the death benefit but will at least refund all premiums paid – usually with interest.

Foir more information, see:

NOTE:

  • Before purchasing life insurance, check the insurance company rating to be sure it will be here to pay future claims. For instance, check the the company at the independent rating agency: TheStreet.com offsite link
  • For additional information about what to look for when purchasing term life insurance, click here.
  • If you have a question about whether you should purchase life insurance, learn about the benefits of having life insurance which include often overlooked benefits while you ae alive. See New Uses of Assets -- Life Insurance.

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