How will my health affect my application?
There is a common misconception that if you have a pre-existing medical condition your insurance application automatically be declined. We’d like to debunk that myth! While insurers will certainly take medical conditions into consideration, every application is carefully considered based on a range of factors.
Health will affect your insurance application in different ways, depending on the insurance you are applying for. Let’s take a look.
What is a Pre-existing Medical Condition?
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Pre-existing medical conditions are defined differently by different insurers. It's always best to check with the individual insurer to understand exactly how it is defined with regards to your policy or application. Generally, a pre-existing medical condition is accepted to include historical illnesses or injuries you have received medical attention for, over a prolonged period.
Examples of pre-existing medical conditions include:
- Heart Disease
- Depression, or other mental health conditions
Before approving an insurance application, insurers will generally take into account a wide range of personal and lifestyle circumstances when they are considering your insurance application, including pre-existing medical conditions. Age, height, weight, medical history, occupation, family health history and smoking status will also be taken into account.
Will I need to pay more for life insurance?
You may need to pay a higher premium rate (known as a ‘premium loading’) if you have pre-existing health issues when you apply for insurance, whether it’s income protection, trauma insurance, life insurance or TPD insurance.
This cost covers the extra risk that the insurer is taking on, alternatively, the insurer may decide to exclude any claims related to your existing condition from claim. This is known as an ‘exclusion’ on the policy.
Trauma, TPD Insurance and Health
Trauma insurance is designed to cover you if you are diagnosed with a specified medical condition such as heart attack, stroke or cancer.
Total and Permanent Disability insurance (TPD) provides a payment if you become totally and permanently disabled and unlikely to ever return to work.
As with income protection and life insurance, when applying for Trauma and TPD insurance, the insurer will usually take into account a range of personal and lifestyle circumstances; such as family medical history, when they are considering your insurance application.
Life Insurance and Health
All life insurance policies compared by Lifebroker are underwritten, which means an insurer will take into account your personal and lifestyle situation.
Lifebroker can help you understand your options with a cover pre-assessment, which means you can understand your options from some of Australia’s leading life insurers before applying for cover.
To learn more about your cover options, give our team of qualified consultants a call on 13 54 33.