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If you suffer from a pre-existing condition it's possible to take out income protection. Each insurer will have its own rules about which conditions it will and won't cover, so should your application get knocked back by one, it doesn't necessarily mean it will be knocked back by another.
Steps to follow:
An adviser can help you find cover from trusted life insurance brands.
While the definition of a pre-existing condition can vary, it generally refers to:
Obtaining an income protection policy with a pre-existing medical condition is not impossible. However, bear in mind that certain conditions will affect your premium rates and depending on the severity of your condition, it may result in your application being declined.
Some examples of pre-existing medical conditions include:
While both policies provide cover for serious illness and injuries, there are a number of key differences between the two that you may need to be aware of.
Benefit type
Income protection is designed to provide a monthly replacement income of generally up to 75% of your salary in the event that you are unable to work due to a serious illness or injury. Critical illness insurance, on the other hand, provides a lump sum benefit payment as a form of financial buffer that the policyholder needs upon the diagnosis of a serious medical event (as covered in the policy).
Purpose of cover
Should you be temporarily disabled and unable to work, bills, rent or mortgage, debts and other payments will still pile up. Income protection benefit is based on your average earnings and provides financial relief should you need to lose work from illness or injury.
Critical illness insurance benefit payments can alleviate the financial stress of any medical and hospital expenses, including rehabilitation, nursing care and home modification costs. You can even use your benefit payout to settle any debts you may have and take a holiday with your loved ones.
Note: Some insurers offer consultation from medical practitioners without any financial restraints.
Combined cover
If you have an existing life cover policy, you may wish to consider income protection as an additional standalone protection cover. Since life cover only provides a benefit payout if you pass away or have been diagnosed with a terminal illness, income protection can be beneficial to have as a replacement income for when you are seriously ill or injured and unable to work temporarily.
Alternatively, for additional protection against serious medical events, such as cancer, heart attack or stroke, you can opt to combine your existing life cover with a critical illness rider. Linking your life insurance policy with trauma cover is an affordable solution for obtaining comprehensive cover.
Back to topYou 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 they are exposed to should they 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:
Direct life insurance providers in Australia, such as Noble Oak and Zurich, offer income protection policies with competitive premiums with minimal medical underwriting. Even though you still have to go through a medical exam and complete a health questionnaire, there are generally less restrictions on the eligibility criteria with direct income protection application.
You can buy your income protection cover direct from the provider without needing to go through a broker. Your income protection policy will be activated as soon as you application is approved.
Back to topYou can obtain income protection, also known as salary continuance insurance, through your super fund. You may also already have cover in place through your employer’s nominated super fund, so it is best to clarify if this is the case. When you opt for your employer’s superannuation fund, you will be automatically covered for life cover, TPD and salary continuance cover, and you are not required to undertake any medical examinations. If you wish to increase your cover, you may be required to provide an additional medical report.
Back to topAustralian insurance providers continuously expand and improve their range of products on the market to suit applicants with different needs and circumstances. You can now purchase income protection plans that provide cover for accidents only, which allows greater accessibility for applicants who may have specific occupations and pre-existing medical conditions.
Income protection with accident only cover means that it will provide a benefit payment in the event that you are unable to work as result of an injury. It generally has less policy features compared to income protection policy with full cover for both illness and injury, so you can benefit from lower premium rates.
Back to topThere are other types of cover that offer similar support similarly to income protection to consider and they may be suitable for applicants with a pre-existing medical condition:
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 up front and honest about any pre-existing conditions you may have. If you withhold information from your insurance provider, they have 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 to your needs. If you have a pre-existing condition, you should:
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hi there my name is volkan , and I have pre existing medical condition, depression and I am on medicine. and I got hernia . I am willing to get income protection. am I covered? for pre existing medical condition? thanks.
Hi Volkan,
Thank you for visiting finder.
There are Insurers that will still offer you Income Protection Cover even though you have a Pre-existing Medical Condition. Between your Depression and Hernia, it seems that the latter is not included on the list of Pre-existing conditions that are covered by a policy.
For your Depression, you will need to submit a medical attendant’s report so your Insurer can assess your condition and provide you with the suitable policy. You may also reach out directly to the Insurer of your choice if they can offer you any coverage for your Hernia though it will entitle you to a higher premium.
On the table at the page that you are currently in, there is a second tab wherein you may ask the assistance from an Adviser to find you the suitable policy and confirm the cover of your pre-existing medical condition.
I hope this helps.
Let us know if there is anything else that we may assist you with.
Cheers,
Ash