Living with a chronic condition? Here’s how to get life insurance
Having a chronic condition like asthma, diabetes, or a mental health issue doesn't mean you’re out of luck when it comes to life insurance. In fact, according to the Australian Bureau of Statistics (ABS), nearly half (49.9%) of Australians live with at least one chronic condition. If you're among the nearly 13 million Aussies with a long-term health issue, here’s what you need to know about getting life insurance.
What’s a chronic condition?
A chronic condition is any health problem that sticks around for more than six months and affects your daily life. Think diabetes, arthritis, asthma, and heart disease. These conditions often come with ongoing symptoms and require continuous medical care.
Source: Australian Bureau of Statistics | Health conditions prevalence 2022
Can I get life insurance with a chronic condition?
Good news – having a chronic condition doesn’t automatically disqualify you from getting life insurance. Insurers consider any pre-existing medical condition you’ve been diagnosed with or treated for before purchasing a policy. This includes conditions that are either resolved or ongoing.
Here’s how it works:
Higher premiums: You might end up paying a bit more (known as a loading) on your premiums.
Exclusions: The insurer might exclude your pre-existing condition from coverage.
Normal coverage: If your condition is low risk, they might cover you as usual.
Each insurer assesses applications individually, so the cover they offer will depend on your unique situation and medical history.
The most prevalent chronic conditions experienced in Australia in 2022 were:
What to expect during the application process
When you apply for life insurance with a pre-existing condition, insurers might ask for your medical records or request a medical exam to evaluate the risk and cost of providing coverage.
Get a pre-assessment
Your financial adviser can help you with a pre-assessment to give you an idea of what kind of coverage you can get. They’ll help you find the best policy that takes your chronic condition into account, ensuring you get the financial protection you need.
Reference:
Health conditions prevalence, 2022 | Australian Bureau of Statistics (abs.gov.au) Accessed January 2024.