The impact of pre-existing medical conditions on Income Protection Insurance

At a glance:

  • Know about pre-existing conditions
  • Importance of pre-existing medical conditions while opting for income protection insurance

Applying for Income Protection Insurance can be complicated if you have pre-existing medical conditions. However, pre-existing conditions are not necessarily uninsurable. This article will discuss how you can manage pre-existing medical conditions related to Income Protection Insurance. You will also learn how to disclose your condition, understand policy exclusions, cope with premium costs and periodically review your policy. If you are seeking online income protection insurance coverage for the first time or are looking to renew your policy, this guide will assist you.

 What are pre-existing medical conditions?

Pre-existing medical conditions are any health problems or illnesses that an individual has been diagnosed with or treated for before applying for a new insurance policy. These conditions can include chronic conditions, such as diabetes or heart disease, or previous surgeries or hospitalizations. The severity of these conditions and whether they will affect the cost of your policy and any exclusions will depend on several factors. Therefore, insurers take pre-existing medical conditions into account when they underwrite insurance policies since they can impact coverage risks and premiums.


Income protection with diabetes:

Income protection may be harder or more expensive to get if you admit to your diabetes when applying, depending on your type and HbA1c level.

Income protection with asthma:

While you disclose existing conditions like diabetes when applying for income protection, how your case is handled is predicated on severe they are. Milder cases may not affect you, while severe cases may make getting insurance more difficult or expensive.

Income protection with epilepsy:

Severe epilepsy could complicate or increase the cost of getting insurance. As a result, insurers may charge more to cover that risk or exclude your condition (or decide not to insure you at all) because they consider you a higher risk.

Why consider pre-existing medical conditions on Income protection insurance?

It is common for insurance companies to limit coverage or charge higher rates for people with pre-existing conditions due to the higher likelihood of future health problems or hospitalizations.

Based on their pre-existing medical conditions, people can make informed decisions about their insurance options. By doing so, they can ensure sufficient protection in the event of a medical emergency or loss of income. Choosing not to cover pre-existing medical conditions may result in insufficient coverage or unexpected out-of-pocket expenses.

Impacts of pre-existing medical conditions while applying for income protection insurance

Application is accepted:

Some pre-existing medical conditions may not have a significant impact on your daily life. A policy may be accepted on standard terms or with only a small increase in premiums.

Application is accepted but with exclusions:

 Standard pricing may be accepted, but you will have exclusions added. As a result, if you are unable to work due to your same medical condition, you will not be able to make a claim on your policy. Some providers may include exclusions for additional conditions related to the current condition that you are experiencing.

 Application is accepted with added premium:

 Due to your condition, providers can reduce the risk associated with providing you with insurance by adding a loading (a price increase) to your premiums. Your premiums will increase depending on the type and severity of your condition.

Application is postponed:

Your application may be postponed if you have recently received a diagnosis or if you have recently undergone surgery. Providers often postpone applications if the diagnosis is new to understand how it affects you. If you have had surgery or will be having surgery, you must have fully recovered from your surgery in order for us to accept your claim.

Application is declined:

In some cases, an application may be rejected. Even though this outcome is rare, it may occur in cases of severe medical conditions that pose a high risk to the health care provider.

You should be transparent about your health when applying for Income Protection Insurance, understand any exclusions or waiting periods, expect higher premiums, and regularly review your policy if you have pre-existing medical conditions. Ensure that you have every piece of documentation that pertains to your medical history as well. You must speak with the best income protection insurance provider to learn about the options available and make an informed decision about your insurance plan.

Jessica Price

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