In the UK, around 15 million people are currently living with a long-term medical condition. It is estimated that by 2030, almost 50% of the UK population will have at least one chronic health condition. Life insurance is important for everyone, but it can be especially challenging for those with pre-existing medical conditions. The good news is that insurance companies do offer policies for people with pre-existing conditions, and we will explain the options available to you.

Life Insurance Options:

If you have a pre-existing medical condition, you can still obtain life insurance, but there may be some limitations. Insurance companies will assess the level of risk you pose based on your medical history, and they will use this information to determine your premium.

The first option is standard life insurance, which is the most common type of life insurance. It is available to those with pre-existing medical conditions, but the premium may be higher due to the increased risk.

The second option is known as ‘Guaranteed Acceptance Life Insurance’. This policy doesn’t require a medical examination, but the premiums are higher due to the increased risk.

The third option is called ‘Life insurance with underwriting’, this type of policy will require you to complete a medical questionnaire and possibly a medical exam, allowing the insurer to evaluate your level of risk. They may place exclusions or restrictions on your policy to cover any medical conditions, which may result in a lower premium.

Factors Insurers Use When Calculating Risk and Premiums:

Insurers will consider a variety of factors when calculating risk and premiums, including:

  • Age
  • Medical history
  • The severity of the medical condition
  • The type of medical condition
  • Medication and treatment
  • Lifestyle factors like smoking, alcohol consumption and BMI.

Information Required by Insurers:

When applying for life insurance, insurers will need to know:

  • The name of your medical condition
  • When it was diagnosed
  • The severity of the condition
  • What treatment you have received and are currently receiving
  • Any medication you are taking.

How to Find the Right Insurance Product for Your Needs:

When searching for life insurance with a pre-existing medical condition, we suggest the following steps:

  1. Research the different types of policies available
  2. Contact several insurers to get quotes
  3. Consider the exclusions and restrictions in the policies
  4. Compare the cost of premiums
  5. Seek advice from a qualified insurance broker

Bottom Line

Life insurance is an essential financial product for everyone, but it can be challenging for those with pre-existing medical conditions. However, there are options available for people with chronic illnesses, cancer, diabetes, lupus, epilepsy, and mental health conditions. Insurers use various factors to calculate the level of risk and the premium, including age, medical history, severity of the condition, type of medical condition, medication, and lifestyle factors. To find the right insurance product for your needs, we recommend researching different policies, comparing quotes, seeking advice from an insurance broker and considering any exclusions and restrictions in the policies.

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