Can life insurance and pain be interrelated? Perhaps, you have never asked yourself such a question. Though you may jump out of your skin if you hear your application for life insurance may come under minute scrutiny for pain, it is true.
While you have often ignored your pain or have accustomed yourself to it, your insurer may not overlook it. Life insurance and pain, especially when it is chronic, are inter-related. When it comes to underwriting, the approval process, it may prove to be a negative catalyst.
The worst thing that may happen to you is you may not be eligible for sign-up. And, the better is you will end up paying higher costs for your pain.
The best may also happen and you may get best rates with no-hassle approval.
Everything depends on the company policy and the nature of your pain.
When Pain and Life Insurance Are Antagonistic
As an insurance employee, an underwriter is in charge of determining two things: your eligibility and the rates for the policy you wish to buy.
If he finds any physical or mental issues while he is analyzing the data he has about you, he will double-check it. And, chronic pain can be one of the reasons he may take another look at your application. He will dig deep.
Now, let us see why pain can be a saboteur for your life insurance approval.
Life insurance companies have their reasons backed-up by medical data that chronic pain can be the devil for many issues.
Psychiatric Effects of Chronic Pain
Webmed reports, chronic pain can be the culprit for many psychological issues. They are:
It produces high level of stress hormones.
Lowers energy levels.
Is responsible for mood disorders.
Affects mental and physical performance.
Affects social skills.
Makes life challenging.
Can create depression and worst, instigate in committing suicide.
Diseases Related to Back Pain
A number of diseases are said to be an underlying cause for chronic, especially back pain. They are:
National Health Society UK’s largest health cites physical conditions you may have pain for and affect your activities.
CRPS (Complex Regional Pain Syndrome)
Sickle cell disease
Back Pain Statistics USA
An estimated 31 million of Americans are said to be experiencing back pain at any given time.
According to Global Burden of Disease 2010, back pain was the single major cause of disability worldwide.
It is the one of the biggest reasons for missed work.
Americans spend $50 billion for back pain each year.
An estimated 149 million days of work per year is lost owing to lower back pain.
Impacts of Pain on Life Insurance
As we have already said, pain, back pain or chronic back pain and life insurance are inter-related in terms of underwriting. It can be an issue of crucial importance for your life insurance. Depending on your situation, you may be negatively affected for it the following way.
Let’s see how.
If you have mild chronic pain, your rate may be a little high depending on the level of mildness. In all likelihood, you will not be considered for preferred plus or preferred rate. Preferred plus or preferred rates are for people who are the fittest and fitter among the applicants.
Having a moderate chronic pain will be a cause for you to have to spend more money on your insurance. You will be considered for a standard rate which means you will pay quite higher costs for your life insurance.
However, the possibility of decline of life insurance for chronic pain depends on the cause you are having the pain for. If the chronic pain bears a symptom for an ailment that insurers decline applications for, chances are you will get declined.
But not all insurers view chronic pain the same way. For example, Transamerica does not okay pain. If you have severe pain, they are likely to disapprove you. On the other hand, Mutual of Omaha does not decline life insurance for chronic pain unless it falls in the cardiac category. They charge higher rates (standard rates) for non-cardiac chest pain while they deal with cardiac pain on an individual basis. Most companies will welcome you so long as your pain is not a symptom for any of the critical illnesses.
Do They Decline Directly?
No, the underwriter will deny after he has viewed your case up and down. He will get to the facts related to your pain. The diagnosis of the issue is of the highest importance when you have chronic pain.
What to Do?
When you have dependents, who will find life financially challenged behind you, you cannot leave them uninsured. While one insurer may decline your application, another will probably welcome you. Similarly, while one insurer may charge you higher rates for your insurance, another may give you lower rates.
But knowing which company will be favorable may not be very easy for you. This is why consulting brokers can be a good idea. They have necessary knowledge in the way insurers work and can find you the right company.