Life Insurance and Pre-Existing Conditions: Facts that Should be More Widely Known

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Getting approved for a life insurance policy is not always as easy as it should be for someone with a pre-existing condition. However, approval rates have improved quite a bit in recent times, but that improvement doesn’t come without its own caveats either. The main concern here is that people with pre-existing conditions should be made more aware of their options.

There is a serious lack of knowledge right now about life insurance for Brits with pre-existing conditions among those who need that information the most. Let’s focus on some of those key facts next, so that getting life insurance with diabetes, heart disease, mental illnesses, birth defects, etc. can be less intimidating than it may seem to be from the outset.

Usual Red Flags for Life Insurance

It should be noted that simply having a pre-existing condition does not automatically mean that there will be any problems with getting life insurance cover. In order for the particular condition to become a problem, that specific health issue must be registered as a conflicting point in the insurance provider’s general policy. Those specific health conditions which are registered as possible red flags will differ slightly from insurer to insurer. However, the following list should provide a general idea regarding which pre-existing health issues might raise one’s cost of life insurance significantly, if their application is approved at all:

  • Type I and Type II Diabetes
  • Heart disease, including any past history of cardiac issues
  • Kidney disease
  • Severe cases of asthma
  • Severe instances of autoimmune diseases
  • Mini and major cerebral strokes
  • Birth conditions such as cerebral palsy and Huntington’s Disease
  • Alzheimer’s, motor neurone disease, epilepsy, Parkinson’s and other neurodegenerative conditions
  • Clinical mental illnesses such as severe depression and suicidal tendencies, inadequate cognitive development, schizophrenia, etc.

Pre-Existing Conditions and Life Insurance: Point of Conflict

Insurers may charge a higher premium than usual, or they might even refuse to provide life insurance coverage for someone with the aforementioned health conditions. This is done because the listed health issues are considered to be risk factors within the life insurance segment. In other words, these are conditions where the insurer is more likely to have to pay the due coverage amount, before the company’s minimum expected premium quota is fulfilled.

Depending on several factors such as the disease itself, how long the client has had it, chances of recovery/further degradation, etc. the premiums will be increased accordingly to make up for taking a risk of premature payment. In some cases, life insurance may not be provided at all if the risks are considered to be too high, according to the particular insurance provider’s estimations.

Life Insurance with Diabetes: Factors that Affect Chances of Qualification and Rates of Premium

There are a few diseases and conditions such as advanced level cancer, AIDS, Alzheimer’s and the like, that almost negate a patient’s chances of getting life insurance, but fortunately, diabetes is not one of them. People with both Type I and Type II diabetes should qualify for life insurance quite easily, but they should, in most cases, expect to pay a higher rate of premium than normal. Factors that decide how much someone has to pay for diabetes life insurance can be listed down as follows:

  • Age of the individual
  • The type of diabetes they have (Type I diabetes life insurance is costlier)
  • HbA1c readings on the latest report, which should preferably be below 10%
  • Co-existing conditions and history of diabetes related conditions/diseases such as heart disease, kidney disease, strokes, hypertension, etc.
  • Body mass index (BMI): being severely overweight or obese is going to raise the cost of insurance significantly
  • Smoking, history of drug abuse and excessive drinking habits

There might also be a few other aspects that the insurer may consider before sending a diabetic his/her life insurance quote, but for the most part, these are the most important ones that make all the difference. As we can see, there are both controllable and uncontrollable aspects to it.

What Everyone Should Know: It is Possible to Lower the Cost of Life Insurance

Now that some essential knowledge about qualifying for life insurance with diabetes and other pre-existing conditions has been discussed, it should be clear that under normal circumstances, you should be prepared to pay more for your insurance policies than someone without any conflicting health issues. However, that may not always have to be the situation, as there is a way to reduce the cost of life insurance, even if you do have conflicting health conditions. For example, you can find life insurance with diabetes cover and choose the insurance company that offers you the lowest possible quote for diabetes life insurance policies by simply comparing them side-by-side on I’m-Insured. Using this site, you can also find out what an insurer needs to know and how you can reduce your premiums. The same also applies for most other pre-existing health conditions as well.

Despite everything that increases the cost of affording life insurance with a pre-existing disease, what works in favour of consumers is the tremendous competition between various life insurance companies operating in the UK. When the potential customer’s choices are no longer limited to just one or two insurers, the insurers will often lower their quotes significantly to get a competitive advantage in the market. Now, it should also be noted that the same holds true for even people who do not have any conflicting physical/mental problems, as the same principle of using the market competition in favour of the consumer applies in general cases as well.

Which Other Types of Insurance Cover Cost More If You Have a Pre-Existing Condition?

Aside from life insurance, there are several other types of insurance which might also cost an individual more, due to them suffering from a conflicting pre-existing condition. In fact, just having some of the conditions already mentioned can be enough to bar people completely from getting qualified for certain types of insurance. A good example would be car insurance policies, where patients with diabetes may or may not be charged more, on account of them having the disease. However, health insurance and medical coverage is, of course, the most sensitive type of insurance that gets affected directly by someone’s pre-existing conditions.

There Are Uninsurable Conditions/Diseases as Well

Unfortunately, it’s true that there are a few health problems which no life insurance provider will cover. In most instances though, in order for a person to be truly beyond life insurance coverage, they would have to be at an advanced stage of an incurable disease/condition. Examples include patients who are close to death or losing their faculties on account of:

  • Advanced HIV
  • Advanced level Alzheimer’s Disease
  • Huntington’s chorea
  • Advanced stages of cancer
  • Extreme cases of systemic lupus erythematosus (only extreme cases are beyond qualification)
  • History of multiple cardiac arrests and consequent procedures, such as valve replacement and pacemaker insertion
  • Congestive heart failure
  • Cystic fibrosis
  • Schizophrenia, dementia and other metal health issues that might cause the patient to commit suicide or lose their faculties

Note that there are other physically or mentally debilitating conditions that might negate one’s chances of getting life insurance completely. Nevertheless, to be completely denied life insurance by all insurers is a very rare occurrence, and you should always try first before giving up on insurance completely.

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