15 Feb I have an undiagnosed condition. Should I buy life insurance?

Q. I have a term policy that will end in two years. I have diabetes and another illness that hasn’t been officially diagnosed but I think it would be serious. Should I get another policy now? I’m concerned about this new diagnosis and I need the insurance for my mortgage, a college tuition bills and maybe one for medical school.
— Worried a bit

A. Life insurance is one of those costs no one wants to pay and no one wants to need, but it’s a great protection for your loved one.

Having diabetes and your other condition does matter, though.

The specifics of your health matter for whether you can extend the policy, but also for the ethical responsibility of agents or brokers when it comes to your undiagnosed condition, said Ed Gaelick, a Chartered Life Underwriter and Chartered Financial Consultant with PSI Consultants in Glen Rock.

Your diabetes alone may be enough to make you uninsurable or highly rated, he said.

“That would depend on the type of diabetes, any complications, medication, insulin and more,” Gaelick said. “Every life insurance application will ask those questions and you must answer honestly.”

As for your other illness, you must also answer the questions honestly and underwriting will make their decision accordingly, he said.

Also, your agent or broker must disclose adverse health issues, even if undiagnosed, if they are aware, Gaelick said.

As you probably expect, combinations of health issues make underwriting more difficult.

“Diabetes plus any other illness will certainly make getting you approved for new coverage tougher, certainly if the other illness is serious,” he said. “So when you ask if you should get another policy now, the answer is yes but you may not be able to. It can’t hurt to try, provided your expectations are realistic.”

Gaelick advises you answer all health questions honestly because insurance companies do have ways to check on medication usage, recent hospitalizations and more.

“My best advice is to see if your term policy is convertible, meaning does that policy — a legal contract — give you the right to change it from term to another more permanent policy such as whole life, universal life or some other form,” he said. “If so, it would be a contractual guarantee and current health issues would be ignored.”

Premiums for policy conversions will be significantly more, he said, but you’ll be able to continue your protection beyond two more years.

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This story was originally published in February 2024.

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