Living with a chronic health condition frequently necessitates adjusting to a new normal, but one thing that does not have to alter is your ability to obtain life insurance. Obtaining life insurance can be a challenging process for people who have pre-existing medical conditions or have had medical problems in the past. However, the process is challenging, but not impossible. Many life insurance providers in the UK provide life insurance for pre-existing conditions, but of course, premiums will be higher than regular, and your application might not be accepted instantly. Nevertheless, it’s very crucial that you get this coverage if you’re in this category of people. This article will do justice to everything you need to know about life insurance with/for pre-existing conditions.
What Is A Pre-existing Condition?
Medical issues or conditions that you had before you applied for life insurance coverage are considered pre-existing conditions. Life insurance companies screen for a variety of conditions, including the following:
- Heart disease
- Asthma
- Diabetes
- Depression and other mental health concerns
- Cancers
- Autism
- Epilepsy
- Obesity etc
When you apply for coverage, insurers evaluate several variables, of which pre-existing conditions are one. Other considerations include your job and the scope of the coverage you’re looking for. In other words, depending on the life insurance policy you’re looking at, the list of qualifying pre-existing health issues may differ.
Can People With Pre-existing Medical Conditions Get Life Insurance In The UK?
A pre-existing medical condition will not automatically disqualify you from receiving insurance coverage in the UK. Just keep in mind the following:
- The insurance company will request more medical information: which might be a report from your doctor, a phone call from a nurse, a short screening, or a medical check, during which they will learn more about your general health or the ailment you are suffering from. If we require you to undergo a medical examination, we will reimburse you for the cost of the examination, which will take place at a time and location that are convenient for you.
- It could be more expensive. Underwriters will examine how likely you are to file a claim while reviewing your application and whether you are more or less prone than the average individual, For instance, if you have a major, persistent medical condition, your rates could be higher.
How Will An Insurer Know I Have A Pre-existing Condition?
In order to set up your rates in the UK, the insurance company will look at your medical history, current lifestyle, and overall health conditions when you apply for a pre-existing life insurance policy. If you have any pre-existing medical conditions, that will be one of the first questions they ask you, along with your age, occupation, and drinking/smoking habits.
With the information you provide about a pre-existing condition, they’ll usually ask a series of further questions to analyze the risk. You may need to provide more information on the following:
- Time of diagnosis of the condition
- Family history of the condition
- What medication are you undergoing?
- Previous hospitalization due to condition
Omitting any of this information for cheaper quotes isn’t a wise decision. Doing so will terminate your contract and prevent you from receiving any compensation if you make a claim.
In addition, your insurer may request to see your medical records from your primary care physician, or it may request that you undergo a medical examination. If you do not choose to provide your personal medical history, you are under no need to do so. However, declining to do so may result in you being denied insurance coverage.
What Effect Do Pre-Existing Conditions Have On My Life Insurance Policy?
This is largely dependent on the nature of your medical condition. If you are young and have been diagnosed with a non-life-threatening illness, you may discover that this does not have a significant impact on whether or not an insurance provider will approve your application.
On the other hand, If you have a terrible and disabling condition that presents an immediate threat to your health, you may find that you are unable to obtain insurance at all because you are regarded as being too high a risk.
If you have a major pre-existing condition and find an insurer willing to cover you, your premiums will be much higher than usual, making the insurance unprofitable in some situations. Your policy may also include conditions that require you to take regular medication or treatments to reduce the risk associated with your current medical condition.
Types Of Life Insurance Coverage For People With Pre-existing Medical Conditions
Life insurance intends to protect your loved ones financially if you die. There are several sorts of life insurance policies, some of which will be more useful to you than others. Remember, always disclose any pre-existing conditions.
Here are some of the covers available in life insurance for people with pre-existing medical conditions in the UK
#1. Term Insurance
Term life insurance is the most common and cost-effective type of life insurance since it provides coverage for a specific period of time, usually 10 to 30 years. As a result, you’ll be able to secure safety for your family, specifically when you need it. You may be eligible for term life insurance if your pre-existing condition is under care.
#2. Permanent Insurance
Permanent insurance covers you for the rest of your life and never terminates. These policies are more costly than term life insurance, but they may be a good option if you have a special needs child or other long-term financial obligations.
#3. Final Expenditure
Final expenditure is a type of insurance that intends to aid with end-of-life expenses such as funerals and medical bills. If you have a chronic disease, these policies may be a suitable choice because they don’t require a medical evaluation.
#4. Guaranteed Issue Life Insurance
If you can’t get a competitively priced term or permanent life insurance policy because of a pre-existing condition, you might want to look into guaranteed issue life insurance. As long as you are within a specified age limit, you will be accepted. To be eligible, you don’t have to take a test or answer health-related questions. As a result, you frequently pay a lot more for a lot less coverage. This sort of life insurance typically has a limited benefit, which means that if you die within a few years after purchasing the policy, the insurer will not pay out.
#5. Group Life Insurance Through Work
Many people, including those with pre-existing health conditions, are able to purchase group life insurance through their workplaces. You won’t have to take a health test to qualify for coverage, which usually has a limit of one or two times your yearly pay. Keep in mind that if you leave your job, you may lose your coverage.
#6. Accidental Death And Dismemberment Insurance
If you are not eligible for term or permanent life insurance, you might want to look into accidental death and dismemberment coverage. The death benefit is only paid out in the event of accidental death, therefore, your medical history isn’t taken into account when determining eligibility. Your beneficiaries may not receive the settlement if your pre-existing condition contributed in any way to the accident.
What Do I Do If I Am Not Granted Life Insurance?
Don’t give up if you’ve been turned down for life insurance or can’t locate coverage at an acceptable price.
One possibility is to put the money you would have spent on premiums into your investments. A well-managed investment account may help you achieve your goal of helping your beneficiaries meet their last expenses. Also, you might want to wait and reapply for life insurance once your health improves.
The worst thing you can do is lie to your insurance company about your medical condition. When it comes to detecting fraud, life insurance firms employ a variety of methods. If you lie about your health on your application, your life insurance claim may be denied, putting your beneficiaries’ benefits in jeopardy. This could also make it more difficult for you to obtain coverage from a different provider.
Pointers To Obtaining Life Insurance With Pre-existing Conditions
#1. Remember to apply at the right time.
If you apply soon after a cancer diagnosis or a heart attack, an insurer is likely to reject you, but you can always reapply, especially if your medical records show that your treatment was successful.
#2. Take advantage of the fact that your health is improving.
Once your ailment is under control, you can request a fresh medical exam (and a lesser premium) if you are accepted but charged a high rate.
#3. Concentrate on the aspects of your life that you have control over.
Taking care of yourself is the first step towards finding affordable life insurance for pre-existing conditions. Take your medication if you have it. If you can exercise, do so. Eat sensibly and strive to maintain a healthy weight. Your premiums may reflect your healthy lifestyle outside of your condition if you live a healthy lifestyle.
#4. Locate a suitable agent.
It’s critical to find an independent agent who collaborates with an impaired risk specialist. An impaired risk specialist is a broker who understands which insurance companies are most likely to offer you a decent rate based on your specific situation. This could save you a lot of time and money in the long run.
Cost Of Life Insurance With Pre-existing Conditions In The UK
Typically, insurance firms will charge a loading fee on top of a standard life insurance payment. What is the mechanism behind this?
The standard pricing will be dependent on factors such as:
- Amount of cover you want
- Type of cover you need
- The time limit for the cover
- Age etc.
Following that, the insurers will apply their premium loading to that pricing. This varies from person to person and is dependent on your unique circumstances. The medical condition and how serious it is determine the amount of loading. They’ll also look to see if you have any other medical disorders in addition to the one you’ve been diagnosed with.
Conclusion
In conclusion, don’t get discouraged about getting life insurance if you have an existing medical condition or have had one. Although it’s hard, it’s obtainable, but at higher premiums. If you have applied before and weren’t granted, it doesn’t automatically mean that this policy isn’t for you; however, while waiting to apply again, ensure that you are observing the necessary precautions as explained in the article. Remember, the younger and healthier you are, the less difficult it is to obtain this policy.
FAQs
What qualifies as pre-existing condition?
a health problem, like asthma, diabetes, or cancer, you had before the date that new health coverage starts. Insurance companies can’t refuse to cover treatment for your pre-existing condition or charge you more.
What is a preexisting condition limitation?
A pre-existing condition exclusion period limits the number of benefits that an insurer has to provide for specific medical conditions and does not apply to medical benefits afforded by a health insurance policy for other types of care.
Why does my health insurance premium go up every year?
The core reasons for the rise in health insurance costs are rising healthcare costs, a lack of insurer competition, and a lack of transparency to help consumers make informed decisions.
What is pre-existing conditions exclusion?
The time period during which an individual policy won’t pay for care relating to a pre-existing condition. Under an individual policy, conditions may be permanently excluded (known as an “exclusionary rider”).
