Can I Get Life Insurance for a Business Loan If I’m Unhealthy?
No business can operate without pumping in money in the first place. If your savings can not sustain the capital required to kick start the first step then a loan is the next best option. In the case where an owner of a business decides to take out a loan from a financial institution, that same institution gains interest in the financial health and capability of the borrower. In more than one case a very large loan has to be guaranteed by an insurer that specifically deals in life insurance. SBA loans, for example, require that you have a policy in place. SBA loan life insurance tends to have specific requirements for this.
Why? This is to ensure that the financial institution does not suffer a major disadvantage when the borrower succumbs to an untimely death. It is just a way that benefits both parties and helps both of them get a great deal from both ends.
Challenges of getting life insurance with health risks
Most insurers do not bar applicants with health risks from getting insurance coverage what happens is there will be a particular difference in how the insurance policy will be structured.
High prices for the premium payable
This is basically the greatest challenge that an individual with a pre-existing medical condition faces.The premiums paid are higher when compared to young healthy candidates. This is because the insurer is taking a high risk in insuring you and at the same time they already know the chance of you succumbing soon is on the high side.
The probability of delays may come about during application
This usually occurs when one who has pre-existing medical conditions tries to hide some of the details about his health. When the insurer is going through a medical report that seems unclear, it takes more time in trying to get more information. The application process can take a toll on an individual, but a great way to avoid all this it to straight forward and honest.
Not all insurance companies will accept covering persons with health risks.
Every life insurance company has its own policies and the extent to which they can allow a certain individual to get coverage from them. Some are lenient and are willing to ensure that you get a policy no matter the condition, but some are tough and do not bend their policies to accommodate anyone that is considered ineligible due to their medical condition.
Process of getting life insurance with health risks
With a health risk your process of getting life insurance might get delays but don’t lose hope. All you need is a great determination and following these steps:
Always do a comprehensive research
Being a high-risk candidate you will have to remember that there are a couple of questions that are going to be directed to you concerning your health. The first thing you should have a clear understanding of your health condition. Also, try to have a good number of options to fall back on.
Look for an independent broker that has a reputation that precedes him.
The broker or agent should not have any ties to any insurance company. But he should be conversant with the different rates that are offered with different insurers. The agent’s work is also to give you guidance as to which company will best satisfy your needs to the maximum, knowing your medical condition
Honesty should be key while presenting your medical condition
Your broker should know much about you. He will get to use the information gathered to work for you to the best of his ability.
Get to know the quotation from a variety of insurers
Different providers will have different prices in certain cases, most cases that are deemed to be of high risk.
Ensure you get the policy that will cater to your needs
Being a high-risk candidate you will have a strain on the number of policies that you are eligible to enjoy.
Complete the medical exams handed to you.
The insurer needs to know about you. Completion of the medical exam gives you an upper hand, for the provider will get to know you and eventually know what price to ask for so as to be able to manage the risk.
Be in constant interactions with your doctor
Providers will always look for a doctor that has a medical report on your health. The doctor is there to make an up to date file on your health.
How to Get Approved
Having a medical condition will make you a high-risk individual for many insurance agencies, but worry not. Medical advances have made it possible for many candidates with poor health to get insurance no matter the condition. For you to get easily approved you have to work a little bit smart. This is how:
Be conscience about time
It is no surprise that you will be turned down when you apply shortly after being diagnosed with a particular time. What you can do is go through the application on another day, once you have gotten treatment and your medical report shows a steady regiment that proves your condition is stable.
Take great care of yourself
If you have a medical condition, try to follow the guidelines given by your doctors. You were given medication, so take it. Try to put in work when it comes to exercises. This will boost your chances of getting an insurance policy. Your healthy lifestyle will win you not only approval but also the premiums might be affordable
Have a great insurance agent
The agent who knows his way in the insurance maze will save you from the many chances of denial that you might face. The life insurance agency can work with an impaired risk specialist who will help guide you to companies that are not afraid to insure you with your condition
Don’t give up
Even the healthy might be denied life insurance by an insurer. In the event you are declined or maybe get premiums that are not that affordable for the desired coverage, keep moving forward. As long as you have the will, you will get coverage from one of the many insurance companies existing.