Sorting life insurance with pre-existing conditions
Life is full of unexpected twists and turns, and while we can't predict the future, we can certainly prepare for it. Whether you're building your career, starting a family, or just embracing the rollercoaster ride of life, one thing's for sure—you want to protect what matters most. But what happens when you have a pre-existing condition?
Source: The Hospitals Contribution Fund of Australia Limited (HCF)
In today's world, getting life insurance with a pre-existing condition is more straightforward than ever before. Whether it's that dodgy knee from your footy days or a chronic condition you've been managing like a champ, you deserve to protect yourself and your loved ones without added stress.
If you've ever wondered whether having a pre-existing medical condition means you can't get a decent life insurance policy, this blog is for you! Read on...
What is a pre-existing medical condition?
A pre-existing medical condition is basically any health issue (illness, injury or disease) you've been dealing with before getting your hands on that insurance policy. It could be an old injury you've been nursing or an ongoing health concern that's part of your regular check-ups. The definition of a pre-existing condition can differ from one insurance provider to another, so it's essential to suss out the specifics by giving that Product Disclosure Statement (PDS) a good read.
Source: AIA | Australia
Can you get covered even with a pre-existing medical condition?
Absolutely! Having a pre-existing medical condition doesn't automatically slam the door on your insurance hopes. But here's the lowdown: you might have to jump through a few extra hoops. This could mean filling out more questions on your application, getting a medical check-up, or handing over some medical reports. It's all about making sure you're matched up with the right policy and there are no sneaky surprises later on. Always spill the beans about any pre-existing conditions when you're asked by the insurer. Remember, honesty is the best policy when it comes to disclosing those pre-existing conditions!
First things first
Typically, the initial stage in securing insurance cover involves openly communicating any pre-existing medical conditions to your financial adviser. This entails providing a comprehensive medical history dating back to your birth.
Not only is disclosing any pre-existing medical condition a legal obligation, it's also crucial for your adviser to identify the most suitable coverage for your needs. Failure to disclose may limit their ability to find an insurer willing to cover you, as it denies them the chance to explore all available options on your behalf.
What do insurers consider a pre-existing condition?
Pre-existing conditions come in all shapes and sizes, ranging from the familiar to the unexpected.
Here are a few examples:
Arthritis and other musculoskeletal conditions
Asthma
Cancer
Depression or other mental health conditions
Diabetes
Heart disease
Stroke
High BMI
Any other conditions diagnosed by a medical practitioner/professional
For those with complex medical histories, consider requesting an anonymous pre-assessment through your financial adviser. This assessment involves submitting an anonymous enquiry to multiple life insurance companies to gauge their perspective on your unique medical background.
Advantages of opting for pre-assessment over a formal application
A pre-assessment offers an informal means to understand how insurers may perceive your risk, without impacting your insurance history. It empowers you to evaluate your risk discreetly, ensuring better preparedness for the formal application process. By leveraging this insight, you can transform risk into opportunity when selecting an insurer.
This assessment is typically sought by individuals who:
Have pre-existing medical conditions
Engage in hazardous occupations or hobbies
Encounter specific or unusual financial circumstances
What happens when you disclose a pre-existing condition?
Here are a few possible outcomes:
Your insurer will automatically cover the condition under your insurance policy.
Other times, they might want to dig a bit deeper. Expect questions or requests for more details about your condition before they decide.
They might offer some special terms, including loadings and/or exclusions for cover if you have a pre-existing condition.
Head over to this blog to know what exclusions and loadings on life insurance policies are.
They might still cover you if treatment or symptoms for your condition stopped at a certain point in the past – say, five years back.
If they do cover your condition, it might come with a higher price tag.
Unfortunately, there might be cases where they can't offer cover for your condition at all, depending on its nature.
How pre-existing conditions affect life insurance premiums
When it comes to life insurance, your premiums aren't set in stone. They're influenced by various factors like your overall health, age, gender, whether you smoke or drink, your lifestyle choices, and where you're at in life.
And yep, you guessed it—pre-existing conditions can also shake things up. The type of condition you have may impact the level of cover you can snag and ultimately influence your premium. So, when you're getting a quote, expect your insurer to consider all these details before settling on a price tag. It's all about finding that sweet spot between coverage and cost!
Health checks for getting life insurance with a pre-existing condition
When you're sorting life insurance with a pre-existing condition, don't be surprised if you're asked to pop by for a health check. These assessments give insurance providers a clearer picture of your condition and overall health status.
During these evaluations, you might undergo an independent medical examination, arranged by your insurer. Sometimes, they'll even throw in a blood test for good measure. It's all part of the process to ensure you're getting the right coverage tailored to your needs.
Key details you may be asked when applying for life insurance with a pre-existing condition
When you're gearing up to get life insurance with a pre-existing condition, brace yourself for a bit of paperwork. Here's what your insurer might want to know before sealing the deal:
Family health history: Ever heard the saying, "It runs in the family"? Your insurer wants to know if any serious health issues are part of your genetic legacy. Think diabetes, cancer, or heart disease among immediate family members like your folks and siblings.
Personal medical track record: Your insurer will likely ask about your past medical check-ups, treatments, or medications you've been on.
Lifestyle habits: How's your daily routine looking? Your insurer's curious about your exercise habits, alcohol intake, and smoking status.
Occupation: Whether you're crunching numbers at a desk or climbing ladders as a tradie, your job plays a role. Insurers want to know the ins and outs of your work life to assess any associated risks.
It may seem like a lot, but providing this info helps insurers tailor your cover to fit like a glove.
Lock in financial security
Life insurance is for everyone seeking peace of mind. Whether you're in the pink of health or battling a medical hiccup, having a safety net in place matters. Have a chat with your financial adviser who can help you get a life insurance quote tailored to your unique situation.