Buying Life Insurance with Pre-existing Conditions: Things to Keep in Mind

If you are a first-time Life Insurance policy buyer, it is natural to wonder whether you will get a policy if you have pre-existing diseases (PED). It is a common concern that can dissuade people from financially securing their loved ones through a Life Insurance plan. So, can you buy Life Insurance, even if you have pre-existing diseases? The answer is yes. You can opt for a Life Insurance plan even if you are suffering from an ailment at the time of purchase. However, that does not mean your pre-existing disease will not impact your policy. This article will tell you everything you need to know if you want to buy a Life Insurance plan with a pre-existing disease. Also Read: Know about these rights and duties while buying Life Insurance

The Insurance Regulatory and Development Authority of India (IRDAI) classifies pre-existing diseases as any medical condition or injury diagnosed 48 months before the issuance of the first policy. In simple terms, you already have a PED when you buy an insurance plan. It can range from diabetes, high blood pressure, and sleep apnea to life-threatening conditions like cancer and AIDS.As a side note - If you suffered from any medical condition more than 48 months ago but currently do not have any symptoms, you are not considered to have a pre-existing medical condition. Also Read: What is the health check-up you need while buying Life Insurance?

Life Insurance premium is connected to your life expectancy. As severe conditions such as diabetes, high blood pressure, heart ailments, or cholesterol can reduce life expectancy, insurers tread carefully if the applicant suffers from such conditions.Most Life Insurance policies are available for people with pre-existing medical conditions. However, it does not guarantee that your insurer will greenlight your application.How are some conditions that could impact your plan to buy Life Insurance:

Severity of pre-existing medical conditions:

Every insurer has a set of standards and terms that you need to fulfil to qualify for a policy. Most insurers look upon applicants with terminal illnesses, such as cancer and AIDS, as a high financial risk. The risk is even greater for your insurer if the said terminal illness is at a critical stage. Finding an insurer who will grant you a Life Insurance plan may be difficult in such cases.However, if your sickness is diagnosed early and is not that severe, there’s a good chance you will find a Life Insurance plan suited to your needs.

Premiums

Just because you have a severe pre-existing does not mean your Life Insurance application will instantly get rejected. You may find an insurer that is ready to offer you a policy, but you may have to pay a higher premium since your health conditions have a direct impact on the premiums charged under your insurance policy.Individuals that have pre-existing medical conditions, such as diabetes and heart conditions, are usually charged higher premium amounts. It is to compensate for the risk posed by their pre-existing condition. The premium amount usually varies based on the severity and type of your medical condition.For instance, there are specific Life Insurance covers for people battling various types of cancer. You can opt for such plans regardless of whether or not you have cancer or are currently undergoing treatment. However, remember that the premium payout will be higher depending on the stage and type of cancer, earlier treatments and prognosis, and the overall condition of your health.

Waiting period:

When you apply for Life Insurance, the insurer assesses your health and medical history through underwriting processes. Depending on the severity of a pre-existing medical condition, the insurance company may offer coverage at a higher premium, exclude coverage for that specific condition, or even impose a waiting period before you can access the benefits under your plan. The waiting period refers to a particular duration you need to wait for before you can file a claim. So, the waiting period depends on your medical condition and imposing one is at the discretion of your insurer. Also Read: Will Life Insurance Policy cover coronavirus-related deaths?

You may be thinking about whether it would just be easier if you hide your pre-existing disease in the first place. However, this is wrong as it can cause complications during the claim process.Firstly, when you apply for Life Insurance, you must answer questions related to your lifestyle and health as part of the application, which includes habits such as smoking and alcohol consumption, along with pre-existing ailments such as low blood sugar levels, chronic hypertension, and so on. You may even have to undergo a medical examination in some cases. You must be transparent and disclose all information truthfully during this step.It is because you will eventually have to submit medical documents to your insurer in case of hospitalisation and your health is at risk. If your insurer later discovers that you concealed a pre-existing medical condition, it may deny your claim or possibly cancel your insurance policy. Also read: What to expect during medical evaluation for Life Insurance?

• A Pre-existing disease (PED) is a medical condition or injury diagnosed 48 months before buying an insurance policy.
• You are eligible for Life Insurance even if you are diagnosed with a pre-existing disease. However, it depends on your PED’s severity and your current health condition.
• The premium payout would be higher if you have a pre-existing disease and opt for a Life Insurance plan.
• Depending on the severity of your pre-existing, the insurer may impose a waiting period before you can access the benefits of your Life Insurance plan.
• Always try to be transparent with your insurer when disclosing information related to your health, as it would help avoid any hassles during the claim process.