Life Insurances 237 views
Life insurance is a must have of all. But, at times the process of filling in a life insurance application seems just like an invasive procedure. Yes, because details about your life that are intensely private such as medical history of you and your family all of a sudden come to public limelight. However, one thing that needs to be mentioned here is the fact that when it comes to life insurance premiums, they are dependent on riders like health and lifestyle.
Well of course there is a valid reason for this. Moreover, at the end of the day, a life insurance policy is nothing, but an investment and the insurer providers need to assess the viability as well as risk of signing off on high-payout policies. Now, here comes a question, what does it means for an individual who is having a history of long-term illness or you can say pre-existing medical conditions?
What is a Pre-existing Medical Condition?
According to the guidelines of 2013 of Insurance Regulatory and Development Authority (IRDA), all the health insurance providers in India need to follow a common set of definitions regarding to the health insurance terminology. Well, as per them, a pre-existing medical condition is considered as an injury or a related condition having the symptoms for some time, and also for which the medical advice, treatment or diagnosis was also sought 48 months before the issuance of the first policy.
Significance of Pre-existing Medical Conditions
When it comes to pre-exisiting medical conditions, they have a significant impact on the application of your life insurance policy. However, it is to be required that a complete disclosure to be made for the medical history of an individual at the time of application. Well, it is quite obvious that the presence of a pervasive medical condition will drive up your insurance premium. It is a catch-22 situation where being upfront will result in a more expensive policy for the person who is looking to get insured. However, one thing that needs to be mentioned here is the fact that holding back is simply not a good option just because if the facts do not match with the information being provided during application time, it could lead towards a rejection of the claim further due to non-disclosure of such material facts.
Thus, whenever you fill a life insurance proposal, it is highly crucial to have a deep understanding of the terms & conditions with respect to an existing health scenario of a person. In fact, it is also vital to look at how this will affect the coverage of the policy, and its related riders.
Below are the factors that one should always bear in mind when a person with an existing medical history is looking to avail a life insurance policy:
- Always compare different life insurers offering different life insurance policies.
- Purchase life insurance early in life as good health is not given, and deteriorating health can actually lead to expensive premiums.
- Complete disclosure of pre-existing medical condition in the form of proposal is not an option. Not to include any material facts, and if the policy mandates a complete health check-up, it would be great to undertake it.
- However, if the cost becomes deterrent, it should be borne in mind that those policies that do not require a health check-up will actually charge you with higher premiums.
Alternative Models: Life + Health Insurance
Many of you will surely agree on the fact that these days, long standing health conditions have become a very common norm. Moreover, with increasing younger demographics and age brackets it would not be wrong to say that seeking medical attention for various medical conditions vary from diabetes to some special needs. As a result, this thing will lead you towards an exponential increase in the demand for having an adequate health insurance.
Similarly, life insurance companies are finding more and more that the critical care and medical insurance can bolster as well as complement that offerings of a life insurance policy. Moreover, the trends have revealed that the Indian insurance market is more likely gravitating towards the global model, where the health as well as life insurance are available as one holistic platform where insurers have also been responsive. For example- the very famous LIC has diversified into providing the health insurance cover.
Well, this is beneficial for those who would earlier have exisiting medical conditions covered by provisional riders in their existing life insurance policy. Yes, because if their health conditions deem their premium more expensive, it would not be wrong to say that at least a comprehensive health package will give you a big relief when you need a medical help.