Life insurance and chronic illnesses

Having a chronic condition like asthma, diabetes or a mental health condition does not necessarily preclude you from taking out life insurance.

According to the Australian Bureau of Statistics (ABS), one in two (49.9%) people are living with at least one chronic condition. If you’re one of the nearly 13 million Australians with a long-term health condition, there are some things that you should know about taking out life insurance.

What is a chronic condition?

A chronic condition is a health problem that lasts for a longer time, usually more than six months, and affects your quality of life or daily activities. Some examples of chronic conditions are diabetes, arthritis, asthma and heart disease. Chronic conditions have persistent symptoms and can often progress over time needing continuous medical treatment or care.

Can I get life insurance if I have a chronic condition?

From the perspective of a life insurer, a pre-existing medical condition generally refers to any illness or ailment that you’ve been diagnosed with or treated for prior to purchasing a life insurance policy. This may include conditions that have been resolved or are still ongoing. Chronic conditions would fall into this category.

You can usually get life insurance if you have a pre-existing condition, but the insurer may decide to add a loading to your premiums, meaning you would pay a higher premium. Or they may add an exclusion so you cannot make any future claims for your pre-existing condition. They may also deem your condition low risk and decide to cover you as normal.

This is a very individual process. Insurers assess applications on a case-by-case basis, so the cover they can offer you will depend on your unique set of circumstances and medical history.

During the application process to get life insurance with a pre-existing condition, the insurer may request medical records or a medical examination, so they can assess the risk and cost of providing you with insurance cover that meets your needs.

We can do a pre-assessment for you to give you an indication of what cover is available to you. We can then help you find the cover that works for you and that takes into account any pre-existing and chronic conditions, so you can get the financial protection you need.

Reference: Health conditions prevalence, 2022 | Australian Bureau of Statistics (abs.gov.au) Accessed January 2024.

Any advice is general in nature only and has been prepared without considering your needs, objectives or financial situation. Before acting on it, you should consider its appropriateness for you, having regard to those factors. Before making any decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement.