Life insurance is a promise to secure your loved ones' future on death. Here's why it matters:
A pre-existing condition refers to any medical condition, diagnosed or not, existing before the insurance policy start date.
Pre-existing medical conditions can vary in severity, treatment options, and prognosis. Some conditions can be effectively managed, while others may require ongoing or specialised treatment and support. Understanding what constitutes a pre-existing condition is important for figuring out how it will impact the cost and eligibility of your life insurance cover. Revealing pre-existing conditions during your life insurance application process will help determine appropriate cover and prevent any issues when subsequently making a claim.
Taking the time to research the options available ensures that life insurance becomes a smart investment for you and your family.
All health issues are identified as pre-existing conditions and you are required to disclose any conditions throughout the application process up to any time before the cover is put in place. Some pre-existing conditions require ongoing treatment and support and can cause disability, or limit daily activities. As a result, the insurance provider may require higher premiums or exclude these conditions from the policy altogether. Some common pre-existing conditions include:
Insurers can also use prescription drug data to identify pre-existing conditions. For example, a person taking medication for high blood pressure may indicate that they have a pre-existing condition. Remember to disclose all medications during the application process to ensure accurate cover and premium calculations. Moreover, it’s a good idea to read and understand the specifics of any life insurance plan to know in advance whether it covers your health problem or medical condition.
Talk to a Policywise adviser for guidance on how to interpret the nuances of any plan - it’s much easier to make good decisions with an informed adviser at your side, and Policywise’s service is fast and free.
Insurance companies take different approaches when determining cover eligibility for individuals with pre-existing conditions. Private life insurance providers in New Zealand typically assess applicants on a case-by-case basis.
Depending on the severity and nature of the condition, the insurer may offer cover with certain exclusions, limited cover amounts, restrictions on the type of policy, additional features, or higher premiums. In some cases, the insurer may decline cover altogether. Disclosing any pre-existing medical conditions when applying for life insurance will ensure that the policy accurately reflects the individual's health status and avoid any potential issues with claims in the future.
Life insurance is an essential aspect of financial planning, providing peace of mind for individuals and families. However, obtaining cover can be challenging for individuals with pre-existing medical conditions. Here are some factors to consider:
It’s important to shop around and compare different insurers to find the best policy for your needs. Working with an experienced insurance agent or broker (you can talk to a Policywise adviser about this) can also help you navigate the process and find the right policy at a reasonable cost.
Individuals with pre-existing conditions have various options for obtaining life insurance, and the type of cover will reflect your unique situation. Some employers offer group life insurance that covers pre-existing conditions instantly, but that cover may be a limited sum insured.
For those who cannot obtain traditional life insurance, alternative options are usually available but with higher premiums or lower cover, such as:
When considering life insurance cover with pre-existing conditions, individuals can decide between underwritten and non-underwritten cover.
It's important to research and find insurance companies that specialise in covering pre-existing conditions and weigh the pros and cons of each option to determine the best fit for individual situations.
Understanding the meaning of exclusions is indispensable before purchasing a policy as they are added to reduce the likelihood of an early payout due to untimely death. If you have pre-existing conditions, it’s wise to know how your policy exclusions may affect your cover.
Some common exclusions include:
Policywise is a 100% free service which tells you which health, life, and disability insurance provider best fits your needs. We offer fast, comprehensive, and easy-to-understand comparisons of all leading providers, and a simple summary clearly recommending which insurer is best for your situation.
Not all insurance policies are the same. Policywise can help you sort out the duds, avoid the lemons, understand the fine print and exclusions, and get the right insurance for you and your family.
We make the important decision of where to buy your insurance super easy. We’ll answer your questions, provide experienced advice, quotes, and comparisons, and manage all the back and forth throughout the application process. Taking out your cover through us means you'll have our lifetime support and claims advocacy, and we'll help you negotiate a positive outcome at claim time. We can also take care of lodging any claims on your behalf and back you up if the going gets tough.
Check out the reviews on our homepage for how other New Zealanders have found our service because now is the time to get your life insurance sorted. Give your family or someone you love the most outstanding financial support possible. Book a 5-minute callback with Policywise today; our service is fast and free.
While life insurance is a smart investment, it’s critical to understand what constitutes a pre-existing condition, how insurance companies identify pre-existing conditions, and which policy exclusions are applicable, especially since the outset of the Covid-19 pandemic. By researching and considering all available options, individuals with pre-existing conditions can make informed decisions and ensure they have the cover they need.
Disclaimer: This article is for general information only. Nothing in this blog or on this website is intended as medical, dietary, or financial advice. Although Policywise aims to update our content regularly, you are advised to consult a financial adviser, health professional, or an appropriate specialist before acting on any information herein. They can factor in your personal circumstances or preferences and help guide your decision-making process.