Life insurance for pre-existing illness

Key takeaways

• Life insurance options may be available to you, even with a pre-existing condition
• What counts as a pre-existing condition, and how it is treated, can vary
• It’s important to answer questions asked during the application process accurately and completely
• Cover, premiums and policy benefits can vary, so check the relevant product information and documents before deciding which cover is right for you

If you’re living with a pre-existing health condition, you may have questions about how it could affect your life insurance options. You might also be wondering what information you’ll need to provide and what the application process involves. Understanding how pre-existing conditions are considered can help you feel more informed before you apply.

In this guide, we’ll cover what you need to know about eligibility and disclosure, along with practical ways to prepare your application.

We’ll also explain how pre-existing health conditions may be assessed when applying for Real Life Insurance.

What are pre-existing conditions?

A pre-existing condition generally refers to a health condition or illness that existed before you applied for life insurance. Exactly what is considered pre-existing can vary between products, so it’s important to check the relevant product information.

Examples of pre-existing health conditions may include:

• asthma
• cancer
• diabetes
• heart disease
• back pain and back issues
• arthritis

Not every past or minor health issue will necessarily be treated as a pre-existing condition. For example, how a seasonal allergy or a previous injury that has fully healed is considered will depend on the product.

Keep reading: Important health checks for every decade of your life

Can you get life insurance if you have a pre-existing condition?

Having a pre-existing condition doesn’t necessarily mean you can’t apply for life insurance. Depending on the life insurance product, you may be asked about your health and medical history as part of the application process.

The next section looks at some of the factors that may form part of this assessment.

Keep reading: How to choose life insurance

How pre-existing conditions can impact life insurance eligibility

A pre-existing condition is one of several factors that may be considered when you apply for life insurance. The questions you’re asked will depend on the application process, but they can help build a clearer picture of your health and circumstances.

Some factors that may be relevant include:

Keep reading: How much life insurance do I need?

Applying for life insurance with a pre-existing condition

Applying for life insurance with a pre-existing condition may involve answering questions about your health, medical history and lifestyle. Taking care with the information you provide can help you complete the application accurately.

Here are three common questions you may have before applying.

Keep reading: What may affect life insurance premiums and eligibility?

Do you have to disclose your pre-existing illness?

When you apply for life insurance, it’s important to answer the questions you are asked about your health, medical history and lifestyle carefully and accurately.

Under Australia’s Insurance Contracts Act 1984, people entering a consumer insurance contract have a duty to take reasonable care not to make a misrepresentation to the insurer.

If the information you provide is inaccurate, incomplete or misleading, there can be consequences. Depending on the circumstances, this may affect your cover or a future claim.

Will life insurance cost more if you have a pre-existing health condition?

A pre-existing health condition may affect the premium you’re offered, but it doesn’t automatically mean your life insurance will cost more.

Premiums can be influenced by a range of factors, which may include your health, age, occupation and lifestyle. The premium that applies will depend on the cover amount and your circumstances.

Keep reading: How much does life insurance cost?

Can you be declined for life insurance if you have a pre-existing illness?

Yes, a life insurance application can be declined, but having a pre-existing condition doesn’t automatically mean your application will be unsuccessful.

If your application is declined, you can ask for more information about the decision. You may also want to check whether you already have insurance through superannuation or explore other cover that may be available to you.

What life insurance options are available for people living with a pre-existing condition?

There are different types of life insurance cover, designed for different circumstances and needs. Understanding what each type of cover is designed to do can help you explore your options.

Depending on what you’re looking for, you may come across:

• Term Life Insurance: Provides a benefit to you or your loved ones if you were to pass away or were diagnosed with a terminal illness, after holding your policy for 12 months, which could help provide financial support when it’s needed most
• Serious Illness Insurance: Optional cover available with a Real Life Insurance policy. It can provide a benefit if you’re diagnosed with one of the serious illnesses covered by the policy and meet the relevant requirements
• Children’s Insurance: An optional cover available with a Real Life Insurance policy, which provides a benefit in the event your child suffers a defined illness, injury or passes away
• Life insurance for Self-Managed Super Funds (SMSF): Provides SMSF members a flexible way to financially protect their loved ones, with premiums paid from the fund rather than directly from their personal bank account

How to prepare your life insurance application with pre-existing conditions

Having some key information ready can make it easier to answer the questions you're asked during your application.

1. Have your health information handy: You may find it helpful to have details such as when you were diagnosed, your current health and relevant treatment information available when you apply
2. Know your medications and treatment: Have details of relevant medications and current or previous treatment handy, so you can answer questions accurately
3. Be ready to explain changes in your health or lifestyle: Provide up-to-date information when asked about changes to your health, condition or relevant lifestyle factors

Find cover that meets your needs

Having a pre-existing condition doesn't necessarily prevent you from exploring your life insurance options. Understanding the application process and having relevant health information ready can help you know what to expect when you apply.

If you're considering life insurance, learn more about Real Life Insurance and request a quote to explore your options.

Frequently asked questions

Can you apply for life insurance while receiving treatment for a pre-existing condition?

Receiving treatment for a pre-existing condition doesn’t necessarily prevent you from exploring life insurance. Have details of your current treatment and medications handy so you can answer any relevant health questions during the application process.

Can I apply for life insurance after recovering from a serious illness?

You can explore life insurance after recovering from a serious illness. Your previous diagnosis and treatment may form part of your medical history, along with information about your current health.

Can I apply for life insurance if I have more than one pre-existing condition?

Having multiple pre-existing conditions doesn’t necessarily prevent you from exploring life insurance. Each condition may be relevant to your application, so take care to provide accurate information in response to the health questions you’re asked.

Does previous surgery count as a pre-existing condition?

Previous surgery won’t necessarily be treated the same way in every application. You may be asked about the procedure, when it occurred, the condition it related to and whether you require any ongoing treatment.