When applying for personal insurance—whether it's life, health, or income protection—disclosure of pre-existing conditions is a crucial step in the process. Understanding how insurers view these conditions and the importance of full disclosure can help ensure your cover is both appropriate and secure.
What Are Pre-Existing Conditions?
A pre-existing condition refers to any medical issue that existed before the start date of a new insurance policy. This includes diagnosed illnesses, anything for which you've sought medical advice, received treatment for, injuries, mental health concerns, or even symptoms you have experienced that may not yet have been formally diagnosed.
Why Disclosure Matters
Insurance contracts are built on the principle of utmost good faith, meaning both parties must be completely honest. For applicants, this means accurately disclosing all relevant health information, including pre-existing conditions, even if they seem minor or irrelevant.
Failing to disclose a condition—intentionally or by mistake—can have serious consequences. It may result in:
A claim being denied
The policy being cancelled
Reduced payout amounts
In extreme cases, allegations of insurance fraud
Being transparent during the application process protects your interests and ensures that any claim you may need to make is not compromised.
How Insurers Assess Pre-Existing Conditions
Once disclosed, insurers will evaluate the risk posed by your condition. Their response may vary depending on the severity, recency, and stability of the condition. Possible outcomes include:
Standard acceptance: The policy is issued without changes.
Policy exclusions: Specific conditions or related illnesses may be excluded from cover.
Increased premiums: The insurer may offer cover at a higher cost to reflect the increased risk.
Declined cover: In rare cases, the insurer may decide not to offer a policy.
Each insurer has its own underwriting guidelines, so outcomes can vary significantly. It’s often worth comparing options or working with an adviser to navigate this process.
Tips for Applicants
Be thorough: List all relevant health issues, treatments, medications, and consultations.
Answer questions accurately: Don’t assume what’s important—if in doubt, disclose.
Use supporting documents: Medical records and reports can support your application.
Use an Adviser: A Financial Adviser can help you present your medical history clearly and explore the most appropriate policy options.
Final Thoughts
Honest and complete disclosure of pre-existing conditions is not just a legal requirement—it’s in your best interest. By being upfront, you enhance your chances of getting the right cover and securing peace of mind for you and your family. While it may seem daunting, a Financial Adviser can simplify the process and advocate on your behalf with insurers.
If you're unsure how your health history might affect an application, seek advice early. Being proactive helps avoid surprises down the line and ensures you're protected when it matters most.