Life insurance after an illness has been found
[social_share]It can be quite hard to get life insurance when an illness has been found, although this is often the time that people are the most keen to get life insurance. There are ways around this.
Getting life insurance can be hard for people who have had an illness, or who do have an illness, due to the way that life insurance works. Essentially life insurance for the insurance companies is a gamble that the people that they are insuring will live. It is not a gamble in the same way that roulette is a gamble in that the life insurance companies pay great attention to the chances of a person dying over the term of the policy. If this is done properly a large number of individual gambles can be pooled together and become a simple and largely predictable pooling of risk. This also applies for whether a person will suffer a disability through not being able to work.
The study of whether people are likely to fall ill, or worse, is known as actuarial science. It is essentially looking at the probability of whether a person in a certain class is likely to fall ill. The class is decided through their history of health, their age, gender and other factors that have proven in the past to be useful for predicting the life span of a person. If there are a large number of people in this same type of class, and they are accurately classified and nothing radically changes the pay out across the group will be very predictable. Whether a pay out is needed for an individual within the group will be very unpredictable, but aggregating into a group will be a far more predictable way of doing this.
A very important predictor of whether or not someone is likely to fall ill is their previous history of illness or accident. Some very serious illnesses are not very predictive, such as an illness that has come from a serious car accident or other trauma, while others will be far more predictive. Although people who fall ill can outlive people who have never had a health problem, throughout the group it is likely to make a pay out more likely.
There are specialist providers who are able to provide life insurance for people who have had health issues in the past. They do tend to ask more questions about health and the actual condition. Some mainstream providers will still provide health insurance for less serious cases, or at a much increased premium.
