Income protection with pre-existing conditions

If you suffer from a pre-existing condition, it's still possible to take out income protection. Each insurer will have its own rules about which conditions it will and won't cover, so if your application gets knocked back by one, it doesn't necessarily mean you can't get covered by another provider.

How to get income protection if you have a pre-existing medical condition

1. Apply for cover and disclose details involving your pre-existing conditions. You can do this either with an adviser or directly with the insurer.
2. Accept a greater premium or exclusions on your policy. If an insurer accepts your application for income protection, you can expect to pay higher premiums due to the increased risk that you are exposing them to or your insurer may impose exclusions on your policy (when claims arise from your pre-existing conditions).
3. Look for another policy. Try another income protection brand if you don't succeed with your first application.
4. Find out what rules your condition is subject to. Make sure you understand what happens when you make a claim relating to your pre-existing condition. We explain this below.

Does income protection cover pre-existing conditions?

Yes, you can get income protection if you have a pre-existing condition. In most cases, you will have to do one of the following:

Pay more

Some income protection insurance providers will cover you for the pre-existing condition but there will be a loading – this is an increase to the cost of your premiums.

Accept an exclusion

In some cases, if you have a more serious pre-existing condition, such as long COVID, the insurer might cover you but not for any claims related to your pre-existing condition.

Be honest about your health

20% of Australians – equivalent to over 3.8 million people – have lied in order to get a cheaper policy. But if you aren't truthful, your claim is likely to be refused.

Get quotes from insurers that will review pre-existing conditions

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Name	Product	Pre-existing Conditions Cover	Maximum Monthly Benefit	Maximum % of Income Covered	Maximum Benefit Period	Sum Insured
AAMI Income Protection		Pre-existing medical and mental health related conditions are covered if you meet the health assessment criteria.	$10,000	75%	Up to 5 years	$211 million	If you’re an existing AAMI customer, you can save 5% on income protection. New customers can get one month free by paying annually.	Get quote View details	Compare	loading Fetching your data...
Insuranceline Income Protection (Pre-existing conditions)		Offers tailored cover for your needs.	$10,000	75%	Up to 5 years	Data not available	Get a $100 bonus gift after 2 months. Plus, and get 12 months cover for the price of 11 if you pay annually. T&Cs apply.	Get quote View details	Compare	loading Fetching your data...
Suncorp Income Protection		Pre-existing medical and mental health related conditions are covered if you meet the health assessment criteria.	$10,000	75%	Up to 5 years	$211 million	Sign up and become a member of Suncorp Benefits. Access savings of up to 15% from major retailers. Existing members can get a 5% discount off their policy.	Get quote View details	Compare	loading Fetching your data...
TAL Income Protection		May require a medical test and to disclose details of your medical history before you’re approved for life insurance.	$30,000	70%	Up to Age 65	$211 million	Get up to 70% of your income covered with flexible short and long term benefit periods.	Get quote View details	Compare	loading Fetching your data...
NobleOak Disability Income Insurance Finder Award		May require a medical test and details of your medical records to be able to tailor your cover.	$30,000	70% for the first 24 months, 60% thereafter	Up to Age 65	$59 million	With NobleOak, you can lock in a policy with a benefit period covering you up to the age of 65. Cover limits may go as high as $30,000.	Get quote View details	Compare	loading Fetching your data...

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What is a pre-existing medical condition?

While the definition of a pre-existing condition can vary, it generally refers to the following:

• A health condition that was diagnosed or investigated by a medical practitioner
• The appearance of certain symptoms leading to a diagnosis
• A condition that occurred prior to the commencement or reinstatement of your insurance policy

Brenton Tong is the managing director and senior financial adviser at Financial Spectrum.

Common pre-existing medical conditions that can affect your income protection application

Examples of pre-existing medical conditions include the following:

• Cancer. If you are a cancer survivor, your insurance provider will want to obtain specific information of the type of cancer it was, the stage when you were diagnosed, the treatments you took and the results of any follow-up checks.
• Diabetes type I and II. If you suffer from either type I or type II diabetes, you'll be required to undergo a medical examination and can expect to pay a premium loading.
• Epilepsy. You may pay higher premium rates depending on the type of epilepsy you have: idiopathic, symptomatic or focal.
• Heart-related conditions. If you have a heart condition, your insurance provider will want to find more information on whether the condition is treated, the response to treatment or if it is malignant.
• Hepatitis. A declaration of hepatitis on your application will prompt your insurance provider to carry out further investigations. Depending on the type of hepatitis, whether it was a single attack, if you have had a full recovery and it was more than 2 years ago since it occurred, you may be eligible for standard premium rates when you apply for income protection.
• Mental illness. Mental conditions such as depression, anxiety and bipolar disorder are difficult to assess by insurance providers due to a variety of forms, degrees of severity and their unpredictable nature. A medical attendant’s report will always be required in this case.
• Sleep apnea. If you have a history of sleep apnea, your insurer will request more information on your condition and a detailed medical attendant’s report. In some cases, you may be required to complete a medical examination and a high premium loading may be applicable.

Why do you need to declare pre-existing conditions?

To ensure that your income protection policy is tailored specifically to your needs and condition should they provide you with cover, you need to be upfront and honest about any pre-existing conditions you may have. If you withhold information from your insurance provider, it has the right to deny any claim that may arise as a result of your condition and refuse to provide cover.

With so many different income protection policies available in the Australian market, it isn't easy to determine which cover is most suitable for your needs. If you have a pre-existing condition, you should do the following:

• Avoid "automatic acceptance" or "no medical examination" policies unless you are after a policy that won't cover your pre-existing condition.
• Consider speaking to an insurance adviser who can provide tailored recommendations based on your specific needs and requirements. An insurance consultant can minimise the time and effort required in securing an income protection policy, especially if you have a pre-existing medical condition.
• If you don't want to use an adviser, consider a direct insurer who offers a detailed medical questionnaire upfront. Although it takes longer to get cover, there is less uncertainty at claim time.

Is it possible to apply for income protection with no medical?

You will be required to complete a health check-up with most providers when you apply for income protection. This is to enable your insurance provider to obtain a more accurate depiction of your health and the level of risk that it is exposed to should it provide you with cover.

If you are looking to secure an income protection policy with no medical, you may want to consider the following alternatives: