Applying for Life Insurance with a History of Illness

Term life insurance coverage is an essential requirement for every individual. However, availing of the term insurance coverage requires scrutiny of your health and the information on your health history. The life insurance premium is charged based on the mortality risk of the individual considering various factors that decide the risk, such as lifestyle, smoking habits, occupation, etc. You might be wondering what would it mean to apply for term insurance coverage with a history of illness.

What is Pre-Existing Illness?

The insurance regulator, IRDAI (Insurance Regulatory and Development Authority of India), has defined pre-existing illness as a part of guidelines on standardisation. The definition says, ‘’Pre-existing disease means any condition, ailment or injury or related conditions for which there were signs or symptoms, and/or were diagnosed, and/or for which medical advice/treatment was received within 48 months prior to the first policy issued by the insurer and renewed continuously thereafter.” (Life insurers may define norms for the applicability of pre-existing diseases at reinstatement).

Impact of Pre-Existing Medical Conditions on the Life Insurance Application

Disclosure of health details and health conditions is important at the time of applying for term insurance policies. Pre-existing medical conditions will have an impact on the premium of term insurance policy as it increases the mortality risk. The premium for the person seeking a term insurance policy with pre-existing illnesses would be generally higher. However, not disclosing the right information about health or hiding the facts can have adverse repercussions later at the time of term insurance claims. The beneficiary would have to face the rejection of claims due to non-disclosure of material facts. Hence, it is crucial to fill in all the correct information and state all material facts at the time of applying for life insurance policies. If there are pre-existing health conditions, a person seeking term insurance coverage can opt for suitable riders along with the basic term insurance coverage.

Things to keep in mind while buying term life insurance with a history of illness

Buying term life insurance to secure your family’s financial future during eventualities is an important and rational decision to make. If you are applying for term life insurance coverage, keep a few important things in mind before you purchase the policy.

1. Apply for a life insurance policy
   When you are young and as soon as you start earning. Along with a higher coverage amount, you could get the comprehensive term insurance policy at a much lower rate.
2. Consider applying for life insurance online
   The digital platform not only gives the cost advantage but also gives the benefit of easy comparison. Plenty of term insurance plans offered by various life insurance companies can be compared side by side both in terms of cost and benefits. Remember, the comparison is the key to choosing the right term life insurance plan suitable for your need.
3. Disclose every material fact rightly
   Give the complete details of any pre-existing medical conditions at the time of applying for the term life insurance policy. However, the life insurance companies that insist on medical check-ups would have your complete health details. Life insurance policies offered without medical check-ups would come at a relatively higher cost.
4. Go for riders
   Like critical illness riders, disability riders, etc, depending on your health history and need for the coverage to enhance the basic term insurance policy that you buy.

Apart from buying term insurance coverage, you can complement the life cover with health insurance coverage in case of any history of illness. Generally, health insurance policies provide coverage for pre-existing health conditions to bear the hospitalisation expenses after the completion of the waiting period. Generally waiting period for pre-existing illness in a health cover vary from 24 months to 48 months from the start of the health insurance policy. Provisional riders and the health insurance policy, along with the term insurance coverage, is a great way to financially secure your family in case you have any history of illnesses. Term insurance is the need of the hour for every individual. Avail the adequate cover and shield your loved ones.

Also Read: Budget 2023: Government Announces New Tax on Insurance Policies with Premiums Above ₹ 5 Lakhs