Insurance Solutions for Unhealthy Young People

According to CBC, “Between 1994 and 2005, rates of high blood pressure among Canadians skyrocketed by 77 per cent, while diabetes rose by 45 per cent and obesity by 18 per cent.” Further, “More than 250,000 Canadians in their 20s and 30s had high blood pressure, making them the newest at-risk group.”

Plus, The Childhood Obesity Foundation of Canada reports the following: “There has also been a dramatic increase in unhealthy weights in children. In 1978, only 15% of children were overweight or obese. By 2007, Statistics Canada found that 29% of adolescents had unhealthy weights. Most adolescents do not outgrow this problem and in fact, many continue to gain excess weight. If current trends continue, by 2040, up to 70% of adults aged 40 years will be either overweight or obese.”

Young people with health issues have more financial challenges than older people. There are a few reasons for this:

1 They are less likely to have a safety net or nest egg set aside for a rainy day — just read this article in The Wall Street Journal.

2. They are more likely to have accumulated significant amounts of debt. The Globe and Mail reports that most students expect to graduate more than $20,000 in debt.

3. They are younger and thus have a longer time frame to be dependent on their income.

So, what insurance solutions are available to younger unhealthy applicants?

Disability and Critical Illness Insurance — Depending on the type of illness, a fully underwritten policy may be available. For more serious illnesses, though, injury-only protection may be the only option available.

Life Insurance — It really depends on the type of illness. If the applicant has an illness such as obesity and diabetes, the applicant may still qualify for traditional life insurance, but the life insurance may only be available with a rating. This is a surplus premium charge for the extra health issue associated with the policy. For applicants with more serious health issues, simplified issue life insurance or guaranteed issue life insurance may be available.

Both Guaranteed Issue and Simplified Issue plans are available without medical tests. Guaranteed issue policies also have no health questions. However, on the downside, guaranteed issue policies have face amounts that are much more limited and have a two-year waiting-period for non-accidental deaths. 

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