%202.webp)
What counts as a pre-existing condition in term life insurance?
In term life insurance, a pre-existing condition typically refers to a health or medical condition that was present before you applied for your term life policy. This can include a formal diagnosis, treatment, or even symptoms. Common pre-existing conditions include a range of sudden or ongoing health issues, such as heart disease, diabetes, or high blood pressure.
There’s an assumption that you can’t qualify for a term life policy with a health condition. In reality, it’s rare to be completely denied coverage. Your medical history will play a role in determining your rates and eligibility. But you can usually still secure affordable coverage to provide your loved ones with a financial safety net should anything happen to you.
Each insurance company assesses pre-existing conditions differently, so always review contract language carefully to understand the coverage and its limitations.
How insurance providers assess your medical history
When determining your eligibility for term life coverage, insurance companies look at a variety of factors, including your medical history. But it all comes down to risk.
Term life insurance provides your loved ones with financial security if you pass away. While you hope they never have to file a claim, insurance companies feel the same way—they hope you reach the end of your term without needing a payout. The higher the chance of a loss, the riskier you are to insure. This can lead to higher rates or even a denied application. For example, smokers often face higher term life insurance premiums because smoking is linked to several major health risks.
Let’s look at how insurance providers assess medical history and risk for term life insurance applications.
Factors insurers review when you apply for term life insurance
Your medical history’s impact on your term life insurance application isn’t always clear-cut. Insurers look beyond simply having a condition and what it is. They’ll also consider:
- Timeline and health history: Long-term, stable conditions may be less of a concern than recent diagnoses.
- Severity of symptoms: Mild and serious cases of the same condition could be assessed differently.
- Effective management: Conditions that are well-managed with medication and treatment are less risky and can have less of an impact on premiums and eligibility.
- Other conditions: Additional medical concerns that can affect the severity of your health issues may impact term life insurance premiums and coverage eligibility.
- Overall health and lifestyle: Your lifestyle habits, weight, and other factors are considered alongside any medical diagnoses.
Because each insurer weighs these factors differently, their impact on your premiums can vary significantly between providers. This is why it’s still worthwhile for people with health problems to apply for term life insurance. You may discover there are many affordable options available to you.
The role of health exams and questionnaires
Medical questionnaires and health exams are a standard part of the term life insurance application process. They help insurers understand your health history and assess risk before approving your coverage or setting your premiums, whether you have a medical condition or not.
Most applications will include a medical questionnaire. While this can feel daunting for those with existing conditions, being honest and thorough is crucial to avoid issues down the road.
The majority of applicants won’t need a health exam. But if an insurer needs more information, they might request a medical. It’s an extra step in the process, but exams aren’t always a bad thing. In some cases, they can even lower your premiums. For example, if your tests show a pre-existing condition is stable and well-managed, an insurance company may view you as less risky to insure.
Medical conditions that commonly affect coverage and term life insurance eligibility
Term life insurance eligibility can vary between insurers, but it mainly depends on whether your medical condition is severe or life-threatening.
Mild conditions will have minimal impact, if at all. A great example is seasonal allergies. It’s considered a medical condition, but carries a low risk and rarely impacts term life insurance rates.
Conditions with increased severity are more likely to impact your eligibility. Although they may come with higher premiums, you might be surprised to learn how many still qualify you for life insurance coverage.
For example, Blue Cross Life Term Life Insurance often provides coverage for Canadians with conditions including:
- Cancer
- Diabetes
- High-blood pressure
- Asthma
- High cholesterol
- Heart disease
While a complex health history can complicate term life insurance approval, eligibility is always personal. The best way to find out if your condition is covered is simply to apply.
Influence of family medical history on premiums
Sometimes, it’s not just your medical history that insurers care about. When applying for term life insurance, you may be asked questions about your family’s medical history. This can include your parents, siblings, or children. Many medical conditions are hereditary, which means that even if you don’t have symptoms, you may be at risk of developing them.
A common example is cancer. Certain genes can be passed down that increase your chances of developing certain types of cancer, which may result in higher term life insurance premiums.
Just like your own health, your family’s medical history won’t necessarily affect your rates or eligibility. Insurers mainly consider how severe the condition is, and the likelihood it could be passed on to you.
Eligibility with pre-existing conditions
Most Canadians with pre-existing medical conditions are still eligible for life insurance. Blue Cross Life’s Term Life Insurance is designed to make securing flexible, affordable coverage as simple and cost-effective as possible—even with a complex medical history. Once you’ve applied and compared quotes, you can choose the plan that is the best fit for you.
When you choose Blue Cross Life, you also get extra benefits, including:
- Rates that never change throughout your term.
- 10% discount on first-year premiums when you purchase as a couple.
- $10,000 in free life insurance for each of your dependent children.
- 30-day grace period for missed payments.
- Automatic renewals for no-gap coverage.
- 100% tax-free payout for beneficiaries.
- Free cancellation at any time, no fees or penalties.
- 30-day money-back guarantee.
What to do if you’re denied coverage
If you’ve been denied term life insurance coverage, you can still secure financial protection for your loved ones. There are different options to help you get the coverage that you need, including:
- Other providers: Every insurance company evaluates medical conditions differently. Just because you’ve been denied a term life insurance policy by one insurer for a health condition doesn’t mean that you’ll be denied coverage elsewhere, or even by the same provider in the future.
- Guaranteed-issue (or no-medical) life insurance: These types of policies, typically referred to as no medical life insurance, typically do not require medical questionnaires or surveys. You are guaranteed to qualify even if you have a pre-existing medical condition. These types of plans do come with significantly higher premiums, but for many Canadians, it can still be worthwhile to secure coverage.
- Workplace group life insurance plans: Many employers offer life insurance through their group benefits plan. These policies usually don’t require any medical details, and your policy will stay in place as long as you remain employed with the company. Many workplace policies will also allow you to purchase additional life insurance coverage outside of what may be provided by your employer.
Even if you haven’t been denied, comparing quotes and evaluating options from different providers can help you find the right coverage.