Serious Medical Condition?

  • Print

Unfortunately many people only realize the need for life insurance after their health has deteriorated significantly or they have been diagnosed with a serious condition like cancer or heart disease. In most cases, traditional life insurance is no longer an option as insurance company guidelines will not allow issuing a policy. Very few insurance agents know how to help a client that has a need for life insurance but unfortunately also has a serious health condition.

Most people do not realize that it is possible to get life insurance even while being treated for

cancer, diabetes, kidney disease, or many other life-threatening conditions and diseases. The type of life insurance available to people with a serious medical conditions differs significantly from traditional term life insurance or permanent insurance (Universal Life or Whole Life, e.g.) issued to people with average or above-average health. The most significant difference is the death benefit waiting period.

 

The death benefit waiting period for this type of life insurance policy is usually 2 or 3 years from the policy date. If a person dies from any disease during that initial 2 or 3 years, the named beneficiary of the policy will only receive the amount of the premium paid on the policy, plus interest on the premium received. The interest typically ranges from an annual 5% to as much as 10%. If the policyholder dies by accident in the initial 2 or 3 year death benefit waiting period, many policies pay the full death benefit amount without any waiting period, subject to certain limitations.

So in a worse case scenario, that is dying before the full death-benefit is payable, the beneficiary of the policy still receives all the money put aside for the purpose of life insurance, plus a very respectable amount of interest. Just consider that bank CDs pay less than 1% interest in many cases and the insurance company pays 5% to 10% (based on an annual rate)!

If you or someone you know has a serious medical condition, contact us at 801-466-5055 so we can discuss your particular situation and explore options. We know how to help people when their need is greatest and very apparent.