The Medical Aspects of Life Insurance
Life insurance is designed to provide benefit s to the estate or dependants of an insured person after their demise. It can also be loaded to trigger benefit after the occurrence of critical illnesses during the term of the policy. A policy holder enters into a contract with an insurance company where they pay a premium either periodically or as a lump sum. Benefits may sometimes include things like funeral expenses.
The policy holder acquires peace of mind with the assurance that upon their death the respective dependants will not undergo financial hardships especially where the insured is only breadwinner is a household or in cases where young children who cannot be able to fend for themselves are left behind. Most life contracts have exclusion clauses that disqualify payment of benefits as a result of death through suicide.
Many insurance companies that offer life contracts usually separate applicants on the basis of their health where there is the preferred best that contains the healthiest individuals on the basis of no adverse medical history and not under any medication for an existing condition in addition to no family history of conditions such as cancer.
The other category is the preferred where the policy holder is currently being treated for a condition and whose family has a history of being affected by particular ailments. The next is the standard category where only the professional life, lifestyle and travel history are considered when taking out a policy where an application can be declined as a result of frequently travelling to a highly risky country. However underwriting policies vary from one underwriter to another.
When companies are setting rates they usually consider the health of applicants. Suffering from a health problem does not necessary imply that you will have to hefty premiums so as to obtain coverage but you will likely pay higher premiums than healthy applicants. There are some medical conditions that will lead to the payment of higher premiums. They include:
Heart disease and Diabetes. These will affect the level of insurance rates. Having a family history showing that you may be susceptible can lead to payment of higher premiums. People suffering from Type I diabetes which developed during their childhood will pay higher premiums and may also have trouble finding an underwriter.
Cancer. The type, treatment and severity will affect the premiums paid. Mild cancer like lesions as a result of the sun may not impact the rates.
Obesity. There are many medical conditions that are associated with being overweight. This issue is dealt differently from one life insurer to another.
Pulmonary disease. You should expect to pay higher premiums if you are affected by asthma which you have carried the whole of your life unlike seasonal asthma.
Life insurance products where you are not required to undergo medical tests are very desirable. They are easily obtained but may cost more in terms of premiums due to the uncertainty involved. It is important to seek advice and compare life insurance policies to determine the best life insurance policy to purchase.