Receiving a terminal health diagnosis is a scary experience that raises several important financial and logistical questions. One question many might think of is how they can take care of their family and whether it is too late to get a life insurance policy. The good news is that there are insurance options if you are terminally ill. So today, the team at Medical Profiles Inc is here to talk about life insurance options for the terminally ill in Houston, TX.
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Life Insurance Options for the Terminally Ill
Getting life insurance when you are terminally ill might be difficult, but it is not impossible. You will have to make some concessions and won’t be able to get the most ideal policies you want, but there are options for life insurance coverage.
Term Life Insurance Will Not Be Available
Term life insurance is a popular option that provides a defined benefit if you die within the term of the policy. Most term policies have ten to 20-year terms. However, most life insurance companies only offer term policies to younger, healthy people who are more likely to outlive the length of the term.
A terminal illness puts you at a higher risk of dying, so most insurance companies will not approve you for a term policy. Part of applying for a term policy involves a medical exam and health questionnaire, which will discover if you have a terminal illness.
It is important that you do not lie on a life insurance application and hide a terminal diagnosis. If they discover the fraud, the life insurance company will not pay your death benefit, and your premiums will go to waste.
Guaranteed Life Insurance Is an Option
Guaranteed life insurance is an option specifically for those ineligible for a term or permanent life insurance policy. With guaranteed life insurance, you do not have to take a medical exam or fill out a health questionnaire. You simply pay your monthly premiums, and your beneficiaries will receive a guaranteed payout when you pass away. Insurance companies offer term and permanent versions of guaranteed life insurance.
Guaranteed life insurance has some trade-offs, though. They have high monthly premiums, and most policies have a one to two-year period before the actual policy kicks into effect. If you die before the policy is active, your beneficiaries will not get the death benefit. After the period is over, beneficiaries will receive the benefit if you pass away.
Another downside is that guaranteed life insurance has low coverage limits. Traditional term policies can have lump sum death benefits up to $1 million and higher. The typical guaranteed life insurance policy, in contrast, is between $10,000 and $20,000. The low coverage limits balance the higher risk the insurance company takes on.
Pros of Guaranteed Life Insurance:
- Guaranteed coverage regardless of your health
- Fast application and approval process
- Term and permanent policies available
- Accelerated benefits available on some policies
- Can cover end-of-the-life expenses
- Cons of Guaranteed Life Insurance:
- High monthly premiums
- Low coverage limits
- Graded periods of policy inactivity
Even if you are sick, there are life insurance options for the terminally ill in Houston, TX.
Lab Testing for Life Insurance Policies
Medical Profiles Inc strives to provide efficient and prompt lab services. Our goal is to make it easy for you to make sound decisions about your health and wellness. If you require lab testing for insurance policies or personal wellness, contact us online or call today at (832) 251-3926 to schedule an appointment!
