When you apply for life insurance, there are some key factors that the insurer’s underwriters will be considering. That’s because the insurance company wants to know how much risk it will be taking on if they accept you as an insured.
One of the main criteria is your age. This is due to the fact that your life expectancy is a parameter of risk. In this particular case, the older you are, the lower your life expectancy is – and the higher the likelihood that the insurance company will have to pay out a claim.
Another big consideration is your health at the time you apply for a policy. Here, too, your health condition can equate to either a longer or a shorter life expectancy. So, for instance, those who have serious health issues like heart disease or diabetes can have a more difficult time qualifying (at least for a fully underwritten life insurance policy).
On the other hand, if you are in excellent health, not only is it possible that you will qualify for the coverage, but you may also qualify for preferred (lower) premium rates. With that in mind, it can be beneficial to apply for life insurance sooner rather than later.
Although you may have difficulty qualifying for a fully underwritten life insurance policy if you are in poor health, this does not necessarily rule you out for coverage altogether. In fact, you could still have several options.
One avenue is to consider a guaranteed issue life insurance policy. As its name implies, those who apply for this type of coverage are guaranteed to be accepted. Also, because all life insurance companies do not use an identical set of underwriting guidelines, even if you are denied by one carrier for a policy, you could still be accepted by another.
Learn More: The Underwriting Process
For this reason, it is recommended that you work with an Insurance Geek that has access to several insurance carriers, and who can shop for a policy that fits your specific needs.