Many consider critical illness insurance to be a huge part of successful financial planning. It is a policy designed to provide us with a lump sum if we are diagnosed with or have suffered a critical medical condition, such as cancer, heart attack, or stroke. The payment is usually released upon diagnosis to help cover treatment expenses, income we might have lost, and other financial obligations.
Though critical illness insurance sounds like a must-have policy, it can be challenging to acquire coverage if you have pre-existing conditions. When applying for an insurance policy, insurers will assess the current health of the potential policyholder and take into account every pre-existing disease diagnosis or condition. Of course, this doesn’t mean that insurance isn’t available, but it may impact premiums and exclusions within the policy. Today, we are going to take a look into critical illness insurance and what to expect if you have any pre-existing conditions.
Critical illness insurance is designed to provide a lump sum payment to the policyholder if they are diagnosed with a severe illness that is covered by the plan. Unlike regular health insurance that is designed to cover medical expenses, the single payout for critical illness insurance can be used for treatments not covered by your health insurance provider, daily living costs, utilities, paying off debts, rent or mortgage payments, and making lifestyle adjustments to facilitate the implications of the diagnosis.
If you’re concerned about applying for critical illness insurance with pre-existing conditions, it is essential to understand the importance of being honest. If information about pre-existing conditions isn’t disclosed, it is likely the insurance won’t pay out when you need it to. Though it isn't impossible to get insurance with the following conditions, they will probably impact the policy in one way or another. Here are some of the more common conditions that can affect your coverage:
It is part of an insurer’s job to assess an individual's medical history to determine whether critical illness insurance is right for them and, if it is, how to tailor it to their needs. The results of this assessment will determine the cost of the premiums, whether certain conditions need to be excluded from the policy, or if they should deny the policy altogether.
Absolutely! If a person has pre-existing conditions, they are welcome to apply for critical illness insurance. However, specific restrictions may occur because of it. For example, some insurance providers might impose a waiting period, where the policy can’t cover claims related to pre-existing conditions for a specific timeframe. Sometimes, individuals may be offered a modified coverage option, and premiums will be slightly higher.
If you are considering critical illness insurance but have concerns about pre-existing conditions, this is what you can expect from your application:
This is where you provide a comprehensive overview of your medical history, personal details, family medical history, ongoing treatments, and prescribed medications.
Your insurers will then look through your health records, assess your previous diagnoses, and check for any other risks they should be aware of.
Once the above has been completed, they will get back to you with their decision. If it is approved, it will likely have higher premiums, exclude certain conditions, or impose waiting periods.
If you have a pre-existing condition, it doesn’t mean that you can’t take advantage of this incredible insurance policy. There are several misconceptions about critical illness insurance and pre-existing conditions, so we want to clear a few things up. Hopefully, it will ease your mind and give you a better understanding of what to expect from your insurer when you apply.
Many assume that a pre-existing condition means that critical illness insurance is not available for them. Thankfully, this isn’t true. Of course, the policy will be slightly different, but it is definitely worth applying.
Some people believe that if they don’t tell the insurance provider about a pre-existing condition, it will still pay. Insurance providers carry out extensive background checks, especially before releasing a payment, so hiding a condition can end up being a massive waste of money.
Most assume that pre-existing conditions will automatically be excluded, but this simply isn’t true. It is still possible to purchase an insurance policy against something that has impacted you in the past.
If you have been turned down for critical illness insurance due to pre-existing conditions by one insurance provider, that doesn’t mean all of them will do exactly the same. It is always worth browsing the market until you find an insurance provider to provide you with the coverage you need.
Don’t Put off Applying and Cover Yourself Today
As you can see, critical illness insurance is a brilliant policy that covers what regular health insurance cannot. Even if you have pre-existing conditions, it is worth browsing the market to take advantage of its amazing benefits. However, it is essential to ensure you understand the insurance policy and its exclusions before taking it out.
If you have pre-existing conditions and plan to invest in a critical illness insurance policy, it is essential to be honest throughout the application process, consider opting for waiting periods for broader coverage, and compare insurance providers. By taking the time to evaluate each critical insurance policy, you will find precisely what you are looking for.
