The S.I.G. Consulting: Life Insurance High Risk Center

With Diabetes, carriers determine insurability and rates based on the type and severity of a diabetes diagnosis. Clients with Type 1 diabetes may have a more difficult time securing coverage compared to Type II diabetes. This is because Type II diabetes can be more treatable or even curable in some circumstances with diet and exercise.

In addition to the type, carriers may also want to know the client’s most recent A1C reading, date of diagnosis, age at onset, any medications currently prescribed, and the frequency of check-ups with their doctor.

Underwriting for clients with heart disease and / or Atrial Fabulation  can vary depending on several factors. The following are some key considerations:

• Severity of the Condition
• Control of the Condition
• Underlying Causes
• Lifestyle Factors
• Medical History
• Current Health Status

It is important to note that each insurance carrier may have different underwriting guidelines for these conditions. Some may be more lenient than others, especially if the condition is well controlled and there are no other health concerns.

If an individual has been diagnosed with cancer, the carrier may ask questions about the type of cancer, its stage, the prognosis, and the treatment plan. Carriers take into account the severity of the illness. For example, someone with stage two pancreatic cancer may be denied coverage because of the high mortality rate associated with the type of cancer. In contrast, someone with basal cell  carcinoma, a common type of skin cancer, may still get coverage because there is a 95% recurrence-free cure rate with appropriate treatment.

Carriers will also ask questions about the client’s lifestyle such as whether they can still work and perform daily tasks during treatment. For clients who were diagnosed with cancer but are in remission, the carrier is likely to require information about their prognosis, the last date of treatment, current medications, as well as their current health plan with their doctor. 

Most insurers are aware that mental illness is not uncommon. There are 11 health issues that insurance companies consider to be mental health issues. Those that accept customers with mental health issues want a clear picture of  a client’s situation. They will ask questions like: “How does your mental health affect your daily Life? Are you able to care for yourself? The more independent you appear, the more likely you’ll get coverage.

Insurers may also be interested in your ability to keep a job, with exceptions for those who are retired or have a physical disability. Typically, they want to see if your illness could potentially prevent you from making a living. Other questions include: How serious is your condition? How long have you had your condition? And are you undergoing successful Treatment?

Mental health disorders are a significant problem in America. According to the National Alliance on Mental Illness, 1in 5  adults  experienced a mental illness in 2022. Can you buy a policy if you have this problem? The answer is YES, but you could be limited to the type of life insurance policy you can buy and what the premiums will be.  How you manage your mental health and the severity of the diagnosis will affect the purchasing options. Group life coverage is another alternative.

Underwriting for Life insurance policies for individuals with kidney function concerns involves a detailed evaluation of an applicant’s medical history and current health status. Underwriters will consider several factors including:

• Type of Kidney Disease
• Stage of Kidney Disease
• Treatment and Response
• Lab Results
• Control of Underlying Conditions
• Overall, Health

Each insurance company has its own underwriting guidelines and may assess risk differently. Some insurers may be more lenient with applicants with kidney function concerns than others. While life insurance may be more expensive than for individuals without these issues, it is possible to obtain coverage. The key is to demonstrate that the condition is well managed and under control.

Underwriting for life insurance policies for individuals who use marijuana and/ or cannabis products involves a detailed evaluation of the applicant’s usage and overall health condition. The underwriter will consider several factors including:

• Purpose of Marijuana use
• Frequency of Use
• Method of Consumption
• Client’s Age
• Medical History
• Industry Involvement

For clients with chronic illnesses including some forms of cancer, medical marijuana is commonly prescribed as a form of therapy. Clients must be honest about both legal and illegal drug usage, including medical marijuana. Some clients may be hesitant to admit to using medical marijuana, even when prescribed by a doctor. With this in mind if a carrier determines that a client has withheld information on an application, they can be denied coverage or provided with a reduced benefit. It is important to note that each insurance company has its own underwriting guidelines and may assess this risk differently.