Buying Life Insurance with Pre-Existing Medical Conditions

Medical conditions such as type-2 diabetes are growing at a rapid pace in India. Even people in their late 20s and 30s get affected by such health complications. Due to this, a common question for a lot of Indians is whether they can get life insurance with a pre-existing medical condition. If yes, will this increase the premium of their life insurance? Let us answers these common questions.

Life insurance is directly linked to your life expectancy. As severe conditions such as diabetes, blood pressure, heart ailments, or cholesterol can reduce the life expectancy, insurers tread very carefully if the applicant is suffering from one such condition.However, most life insurance policies are available for people with pre-existing medical conditions. Disclose the same at the time of applying for the policy, and you can get the policy quickly as someone without a medical condition.

As per IRDA (Insurance Regulatory and Development Authority), a pre-existing medical condition is an illness, injury, or related condition for which someone has taken medical treatment, diagnosis, or advice in the last 48 months.If you suffered from any medical condition more than 48 months ago and it does not currently have any symptoms, you are not considered to have a pre-existing medical condition.

As such conditions can be life-threatening, applicants suffering from them carry a higher level of risk for the insurers. They are placed in the high-risk bucket, and in return of the life insurance, the insurers charge a higher premium from such applicants.However, isn't it smart to merely hide the condition from the insurer and get a lower premium? Not really. In case of your death due to one such condition, the insurance provider can reject your death claim. So, your family will not receive the death benefit if the insurer finds out that you kept your medical condition hidden. Thus, it is better to stay as transparent as possible with regards to such matters.

While the insurance providers are well within their rights to reject your application, the rejections are generally rare. Your application will mostly be approved, but you will have to pay a higher premium.

If you have a medical condition and are looking for life insurance, make sure that you compare policies from different providers. This will allow you to select one that offers maximum benefits and has affordable premiums too.

Life insurance is a financial tool that can help protect your loved ones in the event of your death. It can provide financial support for your spouse, children, and other dependents. There are various factors that you should consider before purchasing a policy, including the amount of coverage you need, how much you're willing to pay for coverage, and the level of protection that you want in the event of an unexpected death.While a person assesses various things before selecting a plan, an insurance company also checks different factors before providing a person with insurance. One such factor is a pre-existing medical condition.Typically, a pre-existing medical condition will not stop you from buying life insurance. However, the insurers might ask for additional information before they allow you to buy life insurance with pre existing medical conditions .The insurer might ask for additional medical information when assessing your application. The insurance company can ask for a doctor’s statement, mini-screening, etc.
Furthermore, once you declare your pre-existing medical condition, the insurance company will assess the likelihood of you filing a claim. Thus, you might have to pay a higher premium to buy the insurance plan.

It’s not necessary that insurers will reject an application of a person who has a pre-existing medical condition. Most insurers use their factors before allowing a person to get insurance.
Typically, people with a terminal illness, such as cancer, are considered high risk. Insurance might be denied for such a person.

A pre-existing medical condition is a health condition you have before you apply for life insurance . You will also need to provide proof of your medical conditions at the time of application. Mostly, insurers consider a pre-existing medical condition to be a condition that is diagnosed up to 4 years prior to purchasing insurance.Typically, there are two types of conditions that can be used to determine a pre-existing medical condition:1) Health Conditions: Any illness or disease that makes it difficult for you to work or live a normal life. This includes cancer, heart disease, diabetes, high blood pressure, etc.2) Physical Conditions: Any injury or accident that happened in the past. If this was serious enough, then it could cause permanent damage.

The waiting period is the number of days or months that you must wait before making a claim. In case of a health insurance plan, there is a waiting period of a few days or months. During this time, policyholders aren’t allowed to make any claim.But in case of a life insurance plan , there is no waiting period to make a claim. Whether it’s a claim raised due to a pre-existing medical condition or not, life insurance can cover it from the time the policy is activated.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.