Getting life insurance with a pre-existing condition

With so many different life insurance products available on the Australian market, it’s easier than ever to take out a policy with a pre-existing medical condition. Illness or injury may no longer be a barrier to protecting yourself and your family, and a good insurance policy can protect you against unforeseen circumstances as well as give you peace of mind.

This article will answer a few frequently asked questions about applying for life insurance with pre-existing conditions.

What is a pre-existing medical condition?

A pre-existing condition is generally defined as any illness or injury for which you have been receiving medical attention over a prolonged period of time. It might be something that you have previously received treatment for, or something that you are still receiving treatment for. It is worth noting that the definition of a pre-existing condition can vary between insurers, so always check the details by reading the relevant Product Disclosure Statement.

Can you get insurance with a pre-existing medical condition?

Having a pre-existing medical condition does not necessarily stop you from being eligible for insurance. However, when applying for life insurance, you may have to answer additional questions, go through a medical examination or be required to share medical reports or details about your medical history. When applying for insurance you should always disclose any pre-existing conditions if requested by the insurer to make sure you are covered by an appropriate policy and to avoid any surprises further down the line.

When you disclose a pre-existing condition to your insurer, they will typically do one of several things:

1. Automatically cover the condition under the insurance policy

2. Request additional information about the nature of the condition before making a decision

3. Amend the policy to prevent it from covering your pre-existing condition

4. Cover the condition for a higher premium

In some cases they may not be able to offer you cover depending on the nature of the pre-existing condition

Life insurance premiums and pre-existing conditions

Life insurance premiums are affected by a number of factors including your general health, age, gender, smoking status, alcohol consumption, lifestyle habits and what stage of life you are at. The level of cover you can access may also be determined by looking at the type of pre-existing condition you have. All of this information is used to determine your premium.

Pre-existing conditions include but are not limited to:

• Arthritis and other musculoskeletal conditions

• Asthma

• Cancer

• Depression or other mental health conditions

• Diabetes

• Heart disease

• Stroke

Medical examinations when getting life insurance with a pre-existing condition

When applying for insurance with a pre-existing condition, you may also be asked to attend an independent medical examination to allow insurance companies to assess your condition. Your insurance company will usually help to arrange this life insurance pre-assessment, which sometimes includes a blood test.

Information you may be asked for when applying for life insurance with a pre-existing condition

Whatever your medical condition, there are certain pieces of information that your insurer will generally want to know before proceeding with giving you a quote for insurance. These include details about your:

Family medical history: Details of any medical conditions suffered by immediate family (i.e. mother, father and siblings) including diabetes, cancers, heart disease.

Personal medical history: Details of any medical examinations, consultations, procedures or medications (including stimulants or sedatives).

Lifestyle and habits: How often you exercise, average alcohol consumption, smoking status.

Occupation: What industry you work in and the requirements of your role.

Whether or not you have a pre-existing condition, life insurance can provide you and your loved ones with valuable financial peace of mind. To put together a life insurance quote that suits your circumstances, try the TAL Coverbuilder.

Any financial product advice is general in nature only and does not take into account any person’s objectives, financial situation or needs. Before acting on it, the appropriateness of the advice for any person should be considered, having regard to those factors. Persons deciding whether to acquire or continue to hold life insurance issued by TAL should consider the relevant Product Disclosure Statement (PDS). The Target Market Determination (TMD) for the product (where applicable) is also available. Life insurance issued by TAL Life Limited ABN 70 050 109 450 AFSL 237848.