Most financial advisors bank on three things when offering insurance to prospective clients. They capitalise on situations related to illnesses, accidents, and deaths.
Most of them also stress the importance of getting an insurance policy while still young and healthy.
This is true because strict underwriting processes are involved in approving clients’ applications with pre-existing conditions.
It isn’t just a person’s health condition evaluated upon every insurance application. Lifestyle and gender are other factors that affect premium rates, including other points such as engaging in risky sports and having dangerous hobbies like scuba diving.
Women, too, have lower premium rates because studies show that they live longer. Now, the question is, is it still possible to get health insurance for a pre-existing condition, specifically in the UK?
Understanding Pre-existing Conditions and Insurance in the UK
Health or life insurance companies usually evaluate a client’s eligibility through various factors. In terms of illness, injury, and health, pre-existing conditions matter, especially since insurance companies tend to give comprehensive coverage in the event of a client’s need.
This means that a person is evaluated more strictly if one has a known health condition, injury, or illness before the availability of an insurance policy. Examples of pre-existing conditions are Carpal Tunnel Syndrome, Eczema, Cloucome, and Gastro-Oesophageal Reflux Disease, to name a few.
Not qualifying, of course, leads to a lot of potential problems. This means that individuals with these conditions have to be solely accountable for all the medical treatment costs they need most of the time.
When medical expenses come at even higher costs, most people deem it unfair that people have become uninsurable and become even more financially challenged in the long run.
On another note, it is possible that not all medical insurance policies in the UK would cover pre-existing conditions. However, there are still instances when these health insurance policies are accessible.
When the insurer determines the pre-existing condition is no longer recurring or a problem. Another way to put it is that there are case-to-case basis treatments regarding the extent of the health insurance coverage.
Usually, a health questionnaire is also filled out, where the client gives specific medical history details. Based on these details, a recommendation will be provided, which may or may not cover pre-existing conditions.
Getting Insurance Coverage for Persons With Pre-existing Conditions
It is good that insurance reform is happening nowadays, though much is left to be desired because some companies still outrightly deny coverage upon knowledge of such conditions.
More health insurance companies offer coverage with specific terms, detailed below.
1. Undergoing moratorium underwriting
If a client chooses to go this route, a Medical History Declaration is no longer required. However, this also means that one has already gotten counsel and treatment for pre-existing conditions and has not had symptoms within five years.
This gives the insurer the option of renewing coverage following the commencement of the insurance.
2. Paying higher premiums
It is still possible for an individual with pre-existing conditions to qualify for insurance coverage by paying higher monthly premiums. This is especially true for people within the same age bracket.
Those found to be healthy will pay lower premiums. Still, many opt for this option rather than go through more financial ruin once anything untoward happens.
3. Having waived benefits
Another way insurance companies give coverage for those with pre-existing conditions is by waiving some benefits.
For example, a healthy client can enjoy a full range of benefits such as critical illness packages. Meanwhile, some insurance companies only give those with pre-existing conditions death and accident benefits but no hospitalisation coverage.
Other companies may give the same type of benefits to those healthy and with pre-existing conditions but simply choose to lower the cap for total amounts shown, such as death benefits.
4. Getting alternative insurance types
A term life policy is a good alternative for those with pre-existing conditions; instead of getting a permanent life insurance plan.
This means that these are renewed on a given basis (e.g., yearly), with a guaranteed-issue policy that has a set amount given.
The caveat, however, is that these insurance plans have limited coverage and lower benefits compared to ones issued for healthy clients. Still, it is advised to have one rather than not have any at all.
Insurance: A Preventative Measure
Insurance will always be a preventative measure. It safeguards one from severe financial ruin and leaves a legacy for loved ones.
While much needs to be done regarding insurance reform, it is still good to note that people with pre-existing conditions are not outrightly prevented from having coverage.
What can matter, too, is the choice of an insurance company and financial advisor. UK advisors recommend staying with the same provider to protect any pre-existing medical condition. Switching to a different insurer may pose the risk of losing existing benefits.
This matters because the insurance agent would know the underwriting process and the qualifications that have to be met. Talking to them and weighing options is never a bad idea.
Also, there are many ways to help improve insurability for those with these conditions. Premium rates can be lowered with the proper treatment plan for a medical condition and other regular exercise and weight management efforts.
