To get the most out of your policy, you should make a personal checklist of what conditions you need coverage for. Make sure you include anything that affects the way you live and could potentially impact your ability to work.
Just because one life insurance provider might not cover your pre-existing condition, it doesn’t necessarily mean you’re uninsurable. We offer products from a range of insurance providers, so shop around until you find a policy that’s suitable.
Like with most types of insurance, you are bound by a duty of reasonable care not to make a misrepresentation when taking out a life insurance policy. While having a pre-existing condition may increase your premiums, not disclosing your medical condition can be even more costly. You may have your claim denied if you do not tell your provider the truth about your medical history when you apply, meaning you would have paid premiums for a policy that may not cover you.
The more information you provide, the more your insurance provider can tailor your cover to suit your requirements and potentially save you money on premiums. A pre-assessment can also help your provider gain a better understanding of your current condition and give an early indication of whether they can offer you cover before you complete a full application.
A life insurance pre-assessment is a process that can help you gain a better understanding of what policies may be available to you. This is generally done through an insurance consultant before you purchase a policy to give you an idea of which life insurance policies could cover your condition.
It involves a form that asks questions about your pre-existing conditions, along with your general details (e.g. age, height and weight) and other information regarding your current lifestyle and occupation. This form can usually be filled out over the phone by your insurance consultant. The more information you give, the more comprehensive the pre-assessment can be.
Pre-assessments are not compulsory, but your insurance consultant may request you to complete one if you have a pre-existing condition.
The information you may need to provide can vary between providers but may include the following types of information.
It’s important to note that the results of your pre-assessment aren’t conclusive; rather, they’re a guide to give you an idea of what kind of cover and prices you can get. If you can’t be covered by a standard policy due to your pre-existing condition (or other factors), your life insurance provider may offer a policy with revised terms tailored to your needs. These terms may include:
Gary had a heart condition 10 years ago that required open heart surgery. He still requires medication but lives a healthy lifestyle with a proper diet and regular, low-impact exercise.
While there are other insurance companies that can insure him, Gary’s provider has excluded claims involving heart disease. So, if he died of this cause, his beneficiary would not be able to claim on the policy.
Gary could search for better coverage, by completing a pre-assessment with Compare the Market to get an idea of whether another provider could offer him a new policy that covers death due to heart conditions.
While you may be able to find a life insurance provider that can cover your pre-existing condition, there are some things that many providers will not cover. Common exclusions include:
Other exclusions for specific policies may also include:
You should always read the Product Disclosure Statement (PDS) to understand the exclusions and limits that are applicable to any policy you are considering.
You’ll likely pay more for life insurance with a pre-existing condition, which is known as a loading. However, it’s important to keep in mind that there are a wide variety of other factors that can affect how much you pay for life insurance, including:
Some providers will require you to have a medical exam with a doctor or medical professional if you want to get life insurance, but not all of them will have this requirement. You’ll still need to fill out a medical questionnaire regardless of whether your provider requires an actual medical examination or not.
It’s still possible to get life insurance if you have a pre-existing health condition. You can get life insurance by:
You’ll need to fill out the provider’s questionnaire and tell them about your condition. While you may have to pay a premium loading or face exclusions specifically related to your condition, you can still take out life insurance and get cover for yourself and your family.
If an insurance provider denies your application for life insurance based on their eligibility criteria, you have a couple of options:
You’ll need to disclose a certain amount of information requested by the provider as part of the application process. Failing to give them this information can be seen as a non-disclosure, which can impact your ability to get insurance coverage.
Insurance companies have strict policies to protect customer privacy and sensitive information, so you don’t need to worry about disclosing your information.
Should you develop a health condition after you take out life insurance, you will still be covered. You’ll need to contact your insurance provider to inform them of the diagnosis, and this may affect loadings or condition-related exclusions.
If you recover or are able to reduce the impact of your condition, your premiums may not necessarily decrease. This is because having a medical condition, regardless of whether it was temporary, means you may be at a higher risk of having health complications later in life.
Additionally, life insurance progressively gets more expensive as we age, partly due to the higher likelihood that you’ll need to make a claim as you get older.
Ready to compare your options? Our free life insurance comparison service compares polices from a range of providers to help you find cover. You can compare all the features, benefits and prices of life insurance products in the one place, and all for free!