You applied for life insurance and have been approved – hooray! Unfortunately, because of an aspect of your health, your premiums will be higher than anticipated and table rated. Now you’re wondering what you should do next.
Should you accept the table rated amount and pay higher premiums or walk away? Let’s discuss your options and what could happen if your health changes or stays the same in future years.
Option 1: You choose to accept the table rating offer and take the policy.
If you accept the offer and pay the premium, your life insurance coverage is immediate. If your health improves over time, many insurance companies will allow you to re-apply to bring down your rates.
If your health worsens over time, you’ll be glad you accepted the coverage. Once your policy is inforce, your life insurance company cannot drop you, cancel your coverage, or raise your premiums due to a health issue.
Option 2: You choose not to accept the policy offer.
If you don’t accept the table rating offer, you will not have life insurance coverage. Your health may improve and you can apply again for coverage at a later date, but your age still comes into play. The older you are when you apply for life insurance, the higher the cost.
There is also a chance your health worsens in addition to aging. There’s always a risk you may wind up uninsurable if the medical issue is severe enough.
What Is Your Best Choice?
Because you never know what life may bring, we always say that buying life insurance sooner rather than later is your best bet. Your loved ones rely on your income and if you post-pone purchasing life insurance and then you unexpectedly pass away, your family is left struggling.
You may be thinking “Sure, life insurance is important. But I’m healthy. I am not going to die anytime soon.”
Unfortunately, accidents happen all the time. Not to mention some life-threatening diseases such as cancer can happen even to the healthiest of people.
The website LifeHappens.org has many real-life stories of families who have been both positively affected by life insurance and negatively affected by the lack of. Take a look at Kiristen’s story about her dad who unexpectedly passed away without having life insurance in place when she was four.
If you purchase the table rated product and your health improves, you can reapply for lower premium costs, but at least in the meantime your family will have financial protection. If you purchase and your health remains the same, you can feel relief that you made a good decision. If you purchase and your health deteriorates, you now have guaranteed coverage during the term period that will stay inforce as long as you keep paying your premiums and your family is protected.
Start the process of buying life insurance by getting a quote. Through Quotacy you do not need to give away any personal contact information, such as an email address or phone number, in order to see estimated life insurance prices. We believe buying life insurance should be easy, private, and understandable, so we made that our mission. Give us a try.
About the writer
Natasha Cornelius, CLU
Senior Editor and Life Insurance Expert
Natasha Cornelius, CLU, is a writer, editor, and life insurance researcher for Quotacy.com where her goal is to make life insurance more transparent and easier to understand. She has been in the life insurance industry since 2010 and has been writing about life insurance since 2014. Natasha earned her Chartered Life Underwriter designation in 2022. She is also co-host of Quotacy’s YouTube series. Connect with her on LinkedIn.