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Options if you are denied term life insurance

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  • Options if you are denied term life insurance

    I was wondering what options there might be if you are denied term life insurance due to a longstanding pre-existing condition? Has anyone gone through a group policy that did not need medical underwriting? If so, which ones?

    For those of you more experienced in insurance, which companies are generally better for those with pre-existing conditions? (We are going through an independent agent that we found on term4life.com already)

  • #2
    What company declined you?

    What is your condition?

     

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    • #3
      If you're truly uninsurable, one option is to self-insure, i.e., live very frugally and put away as much money as possible.

      That may not be very helpful but it might be a little motivation to tighten the belt as much as you can, grab extra work when you can get it.

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      • #4
        I thought you were a VA guy.  Are you eligible for FEGLI?  Perhaps a group policy at a non-federal job?

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        • #5
          Banner life is the company that denied, not me, but my wife.  We're both physicians.  Diagnosis is inflammatory bowel disease, very well controlled for many years on just mesalamine.   Honestly, it seems completely ridiculous to me as she's in her early 30s without other health issues or red flags. Everything normal on life insurance labs and physical.  I would consider myself to be far less healthy but I somehow had no trouble.   We were planning on shopping around but we just found out that she's pregnant so if she did not get approved before I doubt she will now.  At the same time starting a family adds this new feeling of urgency to get all these things taken care of.

          Hank,  she does work at the VA so we're looking into FEGLI.  Unfortunately I think we can only increase the rates to a max of 5x salary after a life changing event (ie after the baby is born) but I think it may also need a physical exam report and approval to make the increase?  In addition having life insurance tied to the job can be an issue if she wants to go part time or something after the baby is born... but we're definitely looking into it.

          And yes, we're living very frugally.  The major need would be over the next 10 years I think.

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          • #6
            When the baby is born, your wife can get FEGLI as a qualifying life event without a medical exam.  I'm not an expert on this, but it looks like she might be able to apply with a physical exam now before the baby is born, and if she's denied based on the physical still get coverage after the baby is born based on the qualifying life event.

            She should check with HR and get at least 2-3 opinions.  (I just don't trust the first answer I get from HR.  The second answer is pretty suspect too.)

            https://www.opm.gov/healthcare-insurance/insurance-faqs/?cid=0c75a3a6-849a-47e6-88cf-aa02b1f2bc9a

            If you are an employee in a FEGLI-eligible position, a Qualifying Life Event allows you to enroll in FEGLI Basic, Option A, Option B (up to 5 multiples), and/or Option C (up to 5 multiples).  You must enroll in Basic to be able to enroll in any or all Optional coverage. There are four FEGLI Qualifying Life Events:

            • Marriage

            • Divorce

            • Death of a spouse

            • Acquisition of an eligible child


            To enroll based on a Qualifying Life Event, you must submit a Life Insurance Election (SF 2817) to your human resources office within 60 days after the day of the event.  For more information, contact your human resources office and review page 4, row 2 of the Election form.

             

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            • #7
              You should have the agent you decide to work with do a survey application where they essentially take application information, share it with the carriers have them render an opinion then you will know which if any carrier has an appetite for that particular aliment.  I have had carriers render an opinion from what we call table D (100% more expensive than a standard rate class) preferred 40% of what the standard cost would be all on the exact same case.  If you commit to doing business with that broker then they should be looking at everything for you.

              On the pregnancy, congrats on that but as far as life insurance it is kind of a non-factor for the first and second trimesters.  The one thing carriers do from a risk adjustment for the pregnancy is they don't take that pregnancy weight gain into account so the sooner you can get the body measurements done the better off typically one is.

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              • #8
                Thank you all for the advice!

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                • #9
                  Congrats!

                  Please post back how the insurance works out - I bet it will help others.

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