Higher Term Level With A Pre-Existing Condition?

Adrian has a pre-existing condition and was declined for it. If he qualifies for another term policy, should he go for a longer term? Dave tells him why that’s a great idea.

QUESTION: Adrian knows Dave likes term life insurance. He has a pre-existing condition and was declined for it. If he qualifies for another term policy, should he go for a longer term? Dave tells him why that’s a great idea.

ANSWER: Yes, you should. You can always rewrite or get another policy if you get healthier or if the research on Crohn’s disease changes. In other words, that would loosen up the insurance market for you. My thought is that stuff is always going to get better, and if it doesn’t, you want to be locked in.

It also doesn’t hurt—depending upon how expensive it is—to buy a little bit of a larger policy in case your income changes, because you’re obviously going to be rated no matter what you get. But you also don’t want to break yourself. Subject to it being “reasonably priced,” I would probably beef it up a little bit as long as you can afford it.