Guest Contributor

Can You Buy Life Insurance with Pre-Existing Diseases?

Life can be quite uncertain, and you need to be well-prepared, although you cannot predict anything. Many people in our country ignore buying a life insurance policy. They think it to be an unnecessary purchase until a sudden mishap or accident brings them to realize its importance. However, it is the best way to cope with the uncertainties of life and ensure that your loved ones are protected financially in the face of adversity.

One of the key factors surrounding a life insurance policy is also the medical history and profile of an insurance seeker. Therefore, if you have a medical condition, you might consider life insurance with pre-existing disease coverage.

If you are wondering what is life insurance plan with a pre-existing disease cover, then understand that this cover will protect you against critical illness expenses. With a life insurance policy that covers pre-existing diseases, you can receive a lump-sum on the diagnosis of critical illness already specified in the plan. Mostly the terms and conditions of these plans state that as the critical disease is detected, it may either continue or terminate. Thus, it is essential to check the coverage carefully before choosing this type of plan.

When you opt for a life insurance policy, your health condition will directly impact its premiums. In general, insurance providers offer lesser premiums for healthier, younger people. But in case you have a pre-existing medical condition, you may be charged a slightly higher premium amount. It is to compensate for the risk posed by the pre-existing disease. The amount is usually directly based on the severity as well as the type of medical condition.

To find the most suitable and best life insurance policy for you, it will be wise to use the insurance calculator. Most insurance providers want to simplify the buying process for you. Hence, they provide an insurance calculator on their websites. Use it to understand your needs and proceed to purchase the best life insurance policy for self.

An insurance calculator will help you compare and analyze the plans. In addition, it will give you an idea of how much premium you will be required to pay with an additional critical illness cover. You can also opt for a monthly, quarterly, or annual premium payment option. Thus, if you use an insurance calculator, you will calculate and plan your financial requirements accordingly.

Once you decide to opt for a life insurance policy, you should do the following things without any mistake:

Share Correct Information

When you submit an application for a life insurance policy to any of the insurers, you must provide correct information. All your personal information ranging from your age to income, should be accurate. If you have plans to buy a life insurance policy with a pre-existing cover, ensure to provide the correct information about the disease.

If you provide incorrect information, the insurance companies may reject your claim at the time of claim settlement. Note that you may lose your life insurance policy. You will then have to bear the burden of the medical expenditure of your critical illness treatment.

If you are unsure about your pre-existing condition, you should get a thorough medical test done. You should note that you will get coverage only for those illnesses stated in your life insurance policy.

Select Adequate Sum Assured

When you use an insurance calculator before buying your life insurance policy, make sure to enter the adequate sum assured. And to do that, you should estimate your annual household expenses. Make sure to take the minimum amount in your calculations for the sum assured to be 15-20 times the annual household expenditure. Additionally, if you opt for a life insurance policy with a pre-existing disease, it will be beneficial to calculate your sum assured amount taking it into consideration.

If you are not around due to an unforeseen circumstance, your source of income will have to be compensated for by the coverage amount. Thus, it would help if you account for the expected increases in your salary. Consider the augment due to inflation as it can create a substantial increase in the expected household expenditure.

Include Critical Illness Rider

It can be stated that if you have a pre-existing condition and are buying a life insurance policy, it is a must to opt for a critical illness rider. As discussed above, a life insurance policy with critical illness cover will pay a lump-sum amount to take care of the treatment costs associated with the disease. However, you should note that the amount paid is equal to the sum insured as part of the critical illness benefit rider. It is generally separate from the death benefit or maturity benefit guaranteed by the base policy.

Generally, the cost of medical treatment of these critical illnesses can be prohibitive. To ensure that you do not get debilitated due to lack of treatment on time, it is essential to opt for a critical illness cover.

If you plan to buy a life insurance policy, consider a plan with the critical illness rider. It will be beneficial to read the policy wordings of various plans to decide the best life insurance policy for you.

Mehedi Hasan

Mehedi Hasan is an enthusiastic health blogger and the founder member of WOMS. He likes to share his thoughts to make people inspired about their fitness. He is an experienced writer and author on highly authoritative health blogs.

Related Articles

Back to top button