Having pre-existing conditions or serious health issues can be a huge encumbrance in purchasing life insurance policy. It may seem absurd, but it is very apparent that most life insurance companies favor to insure only those individual who are in good health. Luckily, there are life insurance companies that specialize in impaired risk life insurance. These companies openhandedly serve even those people with a preexisting health condition.

Process Of Acquiring Policy

You should be cognizant of the fact that applying for life insurance when you have a serious health problem is not the same with the process of applying for a policy when you are in good physical shape. You need to seek help from proficient life insurance broker who specializes in impaired risk life insurance rather than just submitting an application to an insurance company. Talk to your broker about your pre-existing condition. You may discuss this matter with different brokers before choosing the one who can efficiently help you find a good company that covers people with preexisting conditions.

A broker can guide you on the whole life insurance application process and may also help you prequalify for an insurance policy. You may get a preliminary offer hinged on the information that the broker presented to the insurer or you may be necessitated to go through a full underwriting process. Perhaps, the insurance company will provide you a “guaranteed” policy. Guaranteed policy offers you a narrow sum of coverage   or may recommend death benefits that accrue in due course. Your broker will receive the final offer together with a request for the first payment for premium.

During the process of application, you may hear the terms “impaired risk” and “guaranteed whole life” from your broker. Well, the kind of policy that you can obtain relies on the insurer providing the policy, but most impaired risk policies are whole life policies.


One considerable upside of an impaired risk policy is that it allows you to acquire a life insurance when it is almost impossible for you to get one due to your health condition. Your beneficiaries receive the death benefit of the life plan just as they would if you had obtained any other kind of life plan. Moreover, your policy is typically a permanent policy that accrues cash value after a while. Cash value is a sum of money that builds up with the death benefit.


The ultimate drawback of getting an impaired risk policy is the cost of premium. Since you have a pre-existing condition, this sort of life insurance policy can be five to ten times expensive than the usual policies. The pricey cost of premium depends on the level of risk an insurance company bears only to insure those individuals with serious health problem. Besides, some impaired risk policies proffer graded benefits. This implies that the life plan’s death benefits are not fully payable at the time the policy was issued because the benefits actually build over time. This benefit grows over time until it reaches the death benefit face amount listed in the policy contract.