Hi everyone, hoping someone here can help us. My wife and I welcomed our first child last year, and we’ve been trying to get life insurance for her ever since. We’ve contacted several companies and even a broker, but they all say she doesn’t qualify.
She’s in her early 30s, healthy labs, eats well, works out, and doesn’t smoke. However, she has primary sclerosing cholangitis, and we’ve been told this is an automatic decline because of the risk of cancer and liver failure.
Are there any high-risk options or pools we can look into? We’re not after anything huge, just a $100k policy would help. Any advice would be really appreciated.
PCS is considered uninsurable by most companies. I’m not aware of any high-risk insurers willing to take that risk. Guaranteed issue policies could be an option, but they’re usually expensive, and some companies won’t offer them to someone her age. You might be able to stack a few policies across different companies to reach that $100k.
Also, make sure to max out any group coverage through her work, and ask about converting it to personal coverage if she leaves the job.
@Lin
When you say ‘very expensive’… what kind of cost are we talking about? And what do you mean by maxing out group coverage and converting it? I’m not familiar with those terms.
Thanks so much for your help, really appreciate it.
@Peyton
Group coverage is life insurance provided by her employer. During the open enrollment period, she can take as much as is offered. Ask her employer if it can be converted to a personal policy when she leaves the company.
Is she self-employed or working at a small business? If so, there’s an option called small group insurance in addition to the guaranteed issue that someone else mentioned.
Vince said:
Is she self-employed or working at a small business? If so, there’s an option called small group insurance in addition to the guaranteed issue that someone else mentioned.
She actually works for a small business. What exactly is small group insurance? Would her employer offer that?
@Peyton
Yes, small group insurance is usually inexpensive and can help with employee retention. The amount varies by business size. She could talk to her employer about setting it up, and it’s guaranteed issue, so others at her company might benefit too.
The problem is her condition will lead most insurers doing full medicals to deny her. Mutual of Omaha has some more lenient term policies called easy issue, but they will still check her medical history. Check Mutual of Omaha, Prosperity, and TruStage.
Also, consider getting a small whole life policy with no medical exam that covers funeral expenses, just in case. It might be a good backup plan.
Peyton said: @Teegan
Thanks! I’ll look into those companies. Do you have any specific recommendations for whole life policies?
If you’re looking for a straightforward cash payout, Mutual of Omaha is a good choice at a reasonable price. If you want funeral planning included, look at Senior Life Insurance Company.
Depending on her state and employment status, she might qualify for group association plans. These plans can sometimes get you $100k to $400k in coverage with minimal hassle.
Taron said:
Depending on her state and employment status, she might qualify for group association plans. These plans can sometimes get you $100k to $400k in coverage with minimal hassle.
What are group association plans? Is that something through her work or an organization?
@Peyton
They aren’t related to her employer. Think of organizations like AARP, which offer benefits like life insurance to members. She’s too young for AARP, but there are other associations that offer insurance with membership and are easy to qualify for.
Try looking into John Hancock, not their instant decision product but their full term protection, which might require labs. Max out her work coverage, especially the ‘evidence of insurability’ part. She can convert it to a personal policy when she leaves the job, but she has to do it within 30 days.
If that doesn’t work, look at final expense life insurance, a type of whole life policy.
Here are some example prices:
34-year-old woman, nonsmoker, liver disease:
$50,000 - $92/month (whole life, permanent coverage, no medical exam)
$100,000 - $184/month (whole life, permanent coverage, using 2-3 policies with no medical exam)