Life Insurance For People Who Can’t Get Life Insurance


If you have been going without life insurance because you have a history of health problems that has resulted either in declined applications or policies with premiums that you cannot afford, you may have to expand your search. There are life insurance options available for people with a history of health problems.

These may not be perfect solutions to your life insurance needs, but the worst option – particularly if you do have a history of health problems – would be a have no insurance at all. If you’ve been unsuccessful thus far, see if one of these options can work for you.

Employer group life insurance coverage

It is not at all uncommon for people to hold jobs primarily to obtain health insurance. People with a history of cancer, heart disease, or diabetes often find an employer group plan to be the only way that they can get affordable health insurance.

The same can be true of life insurance. In fact, if you have difficulty getting health insurance due to health reasons, you will also be likely to have difficulty getting life insurance. A job with both health coverage and life insurance will address both problems at the same time.

Credit unions and other associations

Credit unions often offer numerous benefits to their members, one of which being group life insurance. A credit union is unlike a bank in that you’re not a customer, but a member. As a member, you’re eligible to receive certain benefits not unlike those of an employer group plan.

As a result of your membership in the credit union, you may be able get inexpensive term life insurance at rates similar to what is available for other members of the credit union. This can be a way of getting life insurance without having to maintain a job strictly for that purpose.

There are other associations apart from credit unions that offer benefits to their members that might extend to life insurance. Check out trade associations, labor unions, and organizations such as AAA and AARP.

Life insurance companies specializing in your health condition

There are literally hundreds of life insurance companies, and many of them specialize in certain risk categories. For example, certain insurance companies extend life insurance to cancer survivors, those with a history of heart disease, and even those of diabetes.

The rates will of course be higher than what they are for those in excellent health, but it does offer an option that is less expensive than other avenues. A specialized life insurance policy could offer you the opportunity to get a relatively small policy at a price you can afford. The key is to work with an insurance agent or broker who work specifically with such companies and have a solid understanding of how they work.

Guaranteed Issue Life Insurance

If none of the above options are available to you, you can apply for a guaranteed issue life insurance policy. Approval is not automatic, and the policies contain some stiff limitations:

  • Age limitations. Guaranteed issue life insurance is usually restricted to those for over 40 or even 50 years old.
  • Waiting period. The policies typically contain a waiting period, ranging from 2 to 3 years. During the waiting period, you’ll be required to make your premium payments but your beneficiaries will not be eligible to receive benefits in the event of your death. If you miss a premium payment, the policy can be canceled and you will forfeit any money you paid to date.
  • Limited benefit amount. The death benefit on a guaranteed issue policies is generally limited to $25,000. Though this will not be sufficient to provide for your loved ones in the event of your death, it will cover final arrangements and maybe pay off some lingering medical bills.
  • Cost. The cost of guaranteed issue life insurance is considerably higher than what it is for other forms of insurance, particularly term life insurance. You can pay several hundred dollars per year for a policy that provides no more than a $10,000 death benefit.

Despite the restrictions however, guaranteed issue life insurance could be the only way when there is no other way to get life insurance.

Have you had difficulty getting life insurance due to current or previous health conditions?