It has become a general understanding that those who are in the best health enjoy better life insurance premiums. It is also largely understood that those in poor or failing health will either have excessive premiums or will simply be deemed uninsurable. In truth, there are insurance options available to people with various degrees of health concerns that often go under the radar. From people who work in an industry where high risk is present to being diagnosed with a serious disease or exhibiting a history of chronic health issues, there are a multitude of reasons why people are told that they are uninsurable. The best advice for someone who has been given the unwelcome news that they are not insurable may be to not stop seeking options. In short, there are ubiquitous solutions available that may require a little digging and that will necessitate working with the right adviser.
One option is to take full advantage of a group life insurance policy. This kind of policy enables an individual to gain access to life insurance irrespective of any pre-existing health conditions. Each employer offering group life is different, so talk with someone in the appropriate company department to know for sure. There are likely limitations and varying situations where a company will pay the premium. In some cases an employer may ask for something know as an EOI or Evidence Of Insurability. High-net-worth business owners would obviously not typically have this option. That is why working with an experienced advisor is so important.
Purchasing survivorship life insurance that is intended to cover both spouses is another excellent strategy. Second-to-die or survivorship policy benefits are paid only after the death of both spousal members. This is an excellent option for affluent families who wish to transfer financial assets to heirs. This is especially true when attempting to estate plan in a more tax efficient way. This would be of a prime concern where heirs will need to have the financial wherewithal to offset estate taxes. The result here is that the spouse who has been deemed uninsurable in Los Angeles can now become insured. It should be noted that this is not always the best option for those wishing to provide a surviving spouse with immediate financial resources upon the death of the first spouse.
Also consider the guaranteed insurance policy solution. This type of policy does not require a medical examination. In most instances nothing more than answering a few basic health and medical related questions is required. Simple questions such as whether or not an applicant is a smoker are typical in this regard. Notes of caution regarding this type of policy include knowing that a “yes” answer may indeed disqualify an applicant and that premiums will usually be considerably higher. Comparing policies carefully for overall benefit terms is strongly recommended. This is yet one more case where working closely with an expert Los Angeles life insurance advisor is always a good choice.
Several other ways of securing life insurance if you have been deemed uninsurable include purchasing a life insurance policy via something known as an affinity plan or choosing a simplified issue policy. As with a guaranteed insurance policy, these programs usually will not require a medical or health exam. As a note, in many cases an affinity plan will be more affordable than a guaranteed insurance policy. The affinity plan option does require making a purchase through some type of professional association. Lawyers and doctors, for example would benefit from this kind of plan. One additional kind of life insurance that may be considered is what is known as credit life insurance. This is often seen in cases where a principle makes a substantial purchase that is to be financed. This is not a preferred option for most people. Further supporting the idea that always working with a dedicated and trusted insurance advisor or insurance firm is a good notion.
Comments Or Questions
Send comments or amplifications regarding this posting to Ron Roth via direct email here. Ron is a managing partner and expert advisor with Silver Rock Partners and brings decades of experience to the table in working with ultra-high net worth clients and business owners. Ron specializes in assisting the affluent in achieving higher levels of federal tax efficiency when estate planning. Learn more about solutions for the uninsurable today with Silver Rock.