Insurance For Pre Existing Medical Conditions
Finding Pre Existing Medical Insurance For Life, Travel & Health
Sep 20, 2009
Insurers don't just give out policies to anyone who applies for them. Their business is all about risk. They know that some people will have to make claims but their aim is to make money by primarily selling to those that won't. For some consumers, such as those with pre-existing medical conditions, this results in increased premium costs, inadequate coverage and, in some cases, a refusal to issue a policy in the first place. How does this work and what can a consumer in this situation do to get the coverage they need?
Insurance Policies and Pre-Existing Conditions
Companies working in certain insurance sectors, such as life, travel and health, pay particular attention to pre-existing medical conditions when they vet applicants. This simply helps them to assess the likelihood, or risk, of a consumer having to make a claim on their policy.
So, if a consumer has had some kind of medical problem in the past, then they are an increased risk to the insurer. The assumption is that they will be prone to suffer from related or similar problems again in the future. The insurer may simply not be willing to pay for that risk and may impose conditions on the consumer or higher charges if they are applying for standard policies.
The Costs of Pre-Existing Medical Insurance Risk
For standard policies people with existing conditions may find that:
- Their applications for policies are turned down flat.
- They are asked to pay higher premiums to get cover for these conditions.
- They may be allowed to take out policies but may have their conditions listed as exclusions (i.e. the policy won't cover them).
So, for example, a life insurance pre-existing condition such as heart attack may mean that the insurer won't allow the applicant to take out one of their standard policies. They may put heart problems in as an exclusion.
Or, a consumer looking for travel insurance for pre-existing medical conditions may be turned down flat by standard insurance companies. In both of these cases, it may simply be quicker and more cost effective to look for policies that are actually designed to help.
Finding Health Insurance That Covers Pre-Existing Conditions
Some insurers will give coverage to people with this kind of medical history even though they realise that there may be an increased risk of claims. Many people find it less stressful, easier and more cost effective to take this route. They will get the coverage they need for everything they need it for.
One downside here may be cost. The fact that an individual with a pre existing condition is seen as a greater risk often means that their policy costs will be more expensive than those given to standard applicants. For many, however, the peace of mind of having cover outweighs this disadvantage.
How to Source Low Cost Pre-Existing Medical Insurance
Not all policies here will charge the same premiums and consumers may be wise to shop around to compare quotes. Online insurance supermarkets may be a good place to start. These sites bring together insurers and their products to make it easier for consumers to find policies and to compare costs. Those that really don't want to got through the standard physical exam process could also look at guaranteed/no exam policies as an alternative.
Finally, bear in mind that honesty really is the only policy here. An individual with a pre-existing medical condition who applies for a policy without disclosing this fact to the insurer could invalidate their policy. So, they could make all their premium payments but, when it comes to making a claim and the insurance company finds that they lied, then they may simply not pay out at all.
It may also be worth talking to any insurer about medical conditions before making an application. If an individual doesn't check this out and gets turned down for a policy then this could affect future applications. Insurers often ask applicants if they have been turned down for coverage in the past and, if this is the case, it may influence their decision.
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