There is a lot of discussion on blogs about what type of life insurance you should buy and how much. Should you stick to term-life? What are the other options? Will you need $1M worth? Less or more? I will leave those discussions to other times and places.
For today, I would like to point out that not everyone can get life insurance. During the “open enrollment” period of my employer I can buy basic term life insurance. If I want any extra life insurance other than the basic bare-bones policy, I will need to have a health review and exam. Or if I want to get my own policy separate from my employer. Or if I want to add life insurance coverage through my benefits during the year after the enrollment period has closed.
You may ask, “So what? What is the big deal? Just answer some questions, be examined, and get your insurance.” I wish it were that easy. You see there is an issue with my health history. This tiny, scary word called CANCER. I was diagnosed at age 34. No family history. No bad habits (okay maybe a few – but I didn’t smoke). Otherwise I was fit and healthy.
Since then I have applied for life insurance many times. I have been denied every time. I even tried the so-called “high risk” plans that specialize in certain patients with illness. Denied.
I have been considered UNINSURABLE for 16 years now. Apparently, these companies think I will be dying soon. I disagree. I now see that I have saved a fortune in insurance premiums. I’m determined to show them wrong.
Now I have lived and worked and invested so long that I’m Financially Independent (FI). I consider myself “self-insured” now and no longer want their crummy insurance policy. I still cannot get it but I neither need it nor want it now.
For me it all worked out well. I’m still alive and I invested the money I would have otherwise spent on premiums. I have been lucky. For you, things might not work out so well. You don’t know what your future holds. If you have children (or other dependent like a nonworking spouse) and you are healthy, buy adequate term-life insurance now.
Don’t wait. An unfortunate health change may strike at any time. The time to act is now.