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 are 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.
What Are Your Options?
|If…||You choose to take the policy…||You choose not to take the policy…|
|Your health improves over time.||Coverage is immediate. After a couple years, many companies allow you to reapply to bring your rates down.||You have no coverage. You may be able to qualify for coverage, at some future date, at your later age, and pay the higher premiums due to an age change.|
|Your health remains the same.||Coverage is immediate. After a couple years, you may apply to have your premiums reduced; however, your health does not allow it. Premiums remain as originally issued and as stated in your policy.||You have no coverage. You may be able to receive the coverage at your later age. Your premiums may be higher due to your older age and/or possible addition of a new health risk.|
|Your health gets worse.||Coverage is immediate. After a couple years, you may apply to have your premiums reduced; however, your health does not allow it. Premiums remain as originally issued and as stated in your policy.||You have no coverage during the time you wait to “get better.” Plus, you run the greatest risk of not obtaining coverage at the rates you have been offered now or not being able to obtain coverage at all.|
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.
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.
Photo credit to: Kurtis Garbutt
About the writer
Writer, Editor, and Co-host of Quotacy's Q&A Fridays
Natasha is the content manager and editor for Quotacy. She has been in the life insurance industry since 2010 and has been making life insurance easier to understand with her writing since 2014. When not at work, she's probably studying and working toward her Chartered Life Underwriter (CLU) designation while throwing a tennis ball for her pitbull mix, Emmett, or curled up on her couch watching Netflix. If it’s football season, the Packers game will be on. Connect with her on LinkedIn.