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Taking Out Life Insurance with a Pre-Existing Medical Condition [5 tips]

life insurance preexisting medical conditionApplying for life insurance as someone with a pre-existing medical condition can seem like a daunting task.

Many worry that disclosing a pre-existing medical condition will mean their application will automatically be declined.

Thankfully, this isn’t the case, and it can still be possible for those living with pre-existing medical conditions to take out the life cover they need.

However, the type and severity of your condition can have an influence on the terms you’re offered. It can also influence the price you’ll pay.

Some conditions can have a minimal impact on the price you pay. And some even have no impact at all. However, those with conditions with an effect day-to-day life will wind up with inflated (or loaded) premiums due to their increased risk to the insurer.

 Living with a medical condition can highlight the need of having the right financial protection in place for your loved ones. After all, you want to protect them should the worst happen to you. Next, consider the impact of the Coronavirus pandemic. As a result, more people than ever have been seeking out life insurance to protect their loved ones. 

 No worries. Coming up award-winning UK broker, Reassured, will provide their top tips below! You’ll learn how to take out the most affordable life insurance if you have a pre-existing medical condition.

I’m sharing this article because I’m a bestselling health and wellness author and founder of the life changing Stop Emotional Eating Digital Program.

I love to provide people with tips about living longer and protecting one’s health. So I put together this article on pre-existing conditions and how they affect life insurance.

First, let’s cover some basics…

How does life insurance work?

A life insurance policy will pay out a lump sum to your loved ones should the worst happen to you.

 This can provide essential financial support to help them cover:

 You can choose between cover that lasts for a certain period of time (term-based cover). Or you can choose cover that lasts for life (whole of life cover). You can check out this term life insurance or whole of life insurance guide for more information.

 You’ll need to pay a monthly premium to keep cover valid. The price you pay for your cover will depend on a variety of factors. This includes disclosing any pre-existing medical conditions.

 If you pass away while your policy is active, your loved ones can make a claim and a pay out will be made.

What is considered as a pre-existing medical condition?

 Insurers will consider any health condition that exists at the point of application as a pre-existing condition.

This includes both physical health conditions such as, diabetes, obesity, epilepsy, high blood pressure etc. Plus this includes mental health conditions such as depression and anxiety.

It’s important that you let insurers know about any conditions you have during the application process as failing to inform them could lead to a pay out being denied later down the line.

Will you need to take a medical exam?

 Applying for life insurance with a pre-existing medical condition doesn’t automatically mean you’ll be required to undergo a medical examination.

 While insurers do have the right to request a medical, they only do so in certain situations. For example, in cases of severe illness or extreme alcohol consumption.

 What’s more likely: Insurers will request a medical report from your doctor. This can only happen with your permission. And you’ll be able to see the report before it’s sent to the insurer.

 Why? Because insurers want to get a better understanding of your condition. And they want to know if there have been any other health implications.

 If you are required to undergo a medical, it’s typically a short examination. You book it for a time and place that suits you. And it’s at the expense of the insurer.

 If you’re aged 50 – 85 it can be possible to take out life insurance without undergoing a medical exam. And you don’t even need to provide any medical information. This is through an over 50s plan which guarantees acceptance to UK residents in this age group.

Top 5 tips for applying for life insurance with a medical condition

1. Always be open and honest

 You’ve all heard the famous saying ‘honesty is the best policy’ and this is particularly true when it comes to life insurance.

 This is because failing to inform insurers of key details (such as a pre-existing medical condition) can be classed as insurance fraud. It’s known as non-disclosure and it can prevent a pay out being made to your loved ones when the time comes.

 Not only would your selfless investment be wasted but your loved ones would miss out on much needed financial aid when they need it the most.

 Today, insurers are extremely used to providing cover to those with pre-existing medical conditions and it can still be possible to secure cover you need, so fear not.

 Only in rare and severe cases are you likely to be declined. What’s more likely is that you’ll pay a higher monthly premium due to the increased risk you pose. Even if you have been declined before due to your medical condition, it could be possible to secure cover. 

2. Have medical details to hand

 You can help you speed up your application process by having up to date medical information available.

 As well as a standard application questionnaire, insurers will need you to answer additional questions about your condition so that they can gain a better understanding of how it affects you and your day-to-day life.

 This can include questions about:

  • When you were diagnosed
  • What are your symptoms 
  • How frequently do you experience these symptoms
  • Which medication are you on
  • What treatment you’ve received/are receiving
  • Whether you’ve had to take time off of work

 Having these answers, and any other relevant information, ready can reduce the need for the insurer to contact your doctor to obtain this information.

 This can help you to paint the clearest picture of what your condition is like so insurers can accurately calculate the cost of your premium.

3. Take out cover sooner rather than later

 How much you pay for your life insurance is based on the level of risk you pose to the insurer (the likelihood of a claim being made).

 Not only will your medical condition be considered when calculating your monthly premium, but also other key information such as your age.

 The price you pay for life cover increases as you get older, so to ensure that you’re locking in the most affordable premium it’s wise to take cover out sooner rather than later.

 Some policies will offer a life changes option (also known as the guaranteed insurability option) so if you need to change your level of cover later down the line, perhaps due to growing your family or moving to a bigger home, you can do this without having to provide additional medical information.

4. Lead a heathy lifestyle

 As well as your age and medical condition, other lifestyle factors such as your smoking habits, alcohol consumption and BMI can also impact the price that you pay for your cover.

Smoking, drinking in excess (over 14 units of alcohol per week) and having a high BMI are all factors that can lead to increased premiums, on top of potentially inflated premiums due to a pre-existing medical condition.

If you want help to save money on your premiums.… focus on…

 With some conditions, such as type 2 diabetes (as this condition often occurs as a result of an unhealthy lifestyle) if insurers can see you’re taking the steps towards a healthier lifestyle to help manage your condition, they’ll often reward you with a reduction in your premiums.

5. Compare multiple quotes

 Different insurers use different underwriting processes and so the quotes you receive can vary dramatically between providers.

 It can become very time consuming going to individual insurers one by one and it can also become confusing if you’re unsure of any industry jargon or terminology used.

 Using a broker service, like Reassured, allows you to compare multiple quotes at the same time.

 This includes quotes from mainstream providers, smaller providers and ‘specialist insurers’ who specialize in offering cover to those with pre-existing medical conditions.

 By taking your personal circumstances into consideration they can provide you with information about the insurers who can offer you the most favourable terms. 

 Not only this but you can also ask as many questions as you need in order for you to make a fully informed decision.

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