When dealing with insurance, you likely think a pre-existing condition is going to ruin your chances. This may very well be the case. However, you should know that pre-existing conditions are more impactful for certain types of insurance. For others, they won’t be a big deal. How will a pre-existing condition impact your ability to get a disability insurance policy? You’ll find out below.
Disability Insurance And Pre-Existing Conditions
Disability insurance can protect you when you’ve become injured or sick. In this type of situation, there is a risk that you’re going to lose income because you will not be able to work. With a disability insurance policy, you’ll be able to continue paying your rent because you’ll receive a monthly payout. However, you’ll have to pay a monthly premium to keep your insurance active. The insurer will determine your premium based on your risk level.
If you’re a higher risk, the company will force you to pay more in premiums. Furthermore, you’ll be able to adjust the premiums by altering your coverage. If you want less coverage, you can save money by downgrading. Your premiums will be impacted by your age, job, lifestyle, and medication history. And there, there is the question of pre-existing conditions. How will pre-existing conditions impact your disability insurance policy?
The Impact Of Pre-Existing Conditions
In most cases, you will be able to obtain a disability insurance policy despite having pre-existing conditions. However, you will likely have to pay more for most types of insurance. Things are slightly different when you’re dealing with disability insurance. With a disability insurance policy, you’ll be able to get a policy but the pre-existing condition will be excluded. If you have a back problem, the company will take note of it. If that back problem causes you to become disabled, the company won’t pay for it.
If you’re injured due to a slip and fall, the insurance will pay for it. This is referred to as an excluded condition. The good news is that you won’t have to pay more for disability insurance even though you have a pre-existing condition. Instead, you just won’t receive coverage for the condition in question.
Understanding Pre-Existing Conditions
You’ve heard it numerous times. However, you’re still not positive what a pre-existing condition is. So, what is it? Well, a pre-existing condition is a medical issue that you currently have. Pre-existing conditions may impact your ability to obtain insurance. People with pre-existing conditions used to find it much more difficult to obtain health insurance. Today, having a pre-existing condition will play a factor when you try to obtain life or disability insurance. While it might not stop you from getting insurance, it could cause you to pay higher premiums.
Some companies may not offer insurance to people with certain pre-existing conditions while others will charge higher premiums. There are various pre-existing conditions and the risk can vary significantly. For instance, someone with cancer might be denied while an asthmatic may experience a minor premium increase. If the condition is temporary, you don’t have to worry about it impacting your insurance. This includes the flu. You will likely recover from the flu and the symptoms will disappear. So, this illness will not impact your insurance.
The insurance company will want to know more about your pre-existing condition and the treatment you received. This information will show up in your medical records and the insurer will use it to determine whether you’re eligible for insurance. Furthermore, this information will be used to determine the price of your premiums. You’ll also want to be honest with speaking with the insurer. Don’t lie because they’ll find out eventually.
Disability Insurance For Canadians With Pre-Existing Conditions
Disability insurance is a bit different than the others. With this in mind, it is important to know that disability insurance companies will handle pre-existing conditions directly. In most cases, you will be able to obtain disability insurance while having a pre-existing condition. However, it will ultimately depend on the severity of the illness and you will most likely be required to pay higher premiums than someone who is healthy.
If you’re still experiencing symptoms related to the pre-existing condition, you may be denied insurance coverage. This is very common for people who have cancer. However, you may be offered insurance if you’ve been in remission for a few years. While you’ll still be able to obtain disability insurance, cancer will be excluded for the insurance.
If you have a condition that isn’t often associated with a debilitating illness, you should be declined. This includes anxiety and other mental health issues. Remember that everything in your medical records will be visible. Therefore, it is pertinent to be thorough and honest when you apply for disability insurance. Make sure that you tell the company everything you can about your pre-existing conditions because they’re going to find out later anyway.
What Disability Insurance Won’t Cover
While disability insurance is wonderful, it is not going to cover everything. If you have pre-existing conditions, there is a good chance that they’ll be excluded from your insurance policy. If cancer is excluded, you will not receive benefits if your cancer returns and you cannot work. As long as the problem wasn’t something you had before or it wasn’t caused by a pre-existing condition, your insurance should help.
For instance, you may have arthritis and it will be excluded from your insurance. If your arthritis creates another problem, that issue will likely be excluded as well. However, you may experience another problem with your back. If this is the case and the new condition has nothing to do with your existing arthritis, you should receive coverage.
Exclusion ensures that you’re able to get insurance despite having pre-existing conditions. Just remember that each insurance carrier is different. The way they’ll treat the exclusion will depend on the company and the condition in question. Be sure to check with your insurer and paperwork to find out more about your policy and its exclusions.
Reconsideration Period
If you have a pre-existing condition and it has been excluded from your disability insurance, it will likely be excluded for the length of coverage. However, you may eventually fully recover from the condition. Once you’ve fully recovered, you may want to speak with the insurance and ask them to reconsider. With a little luck, the company will do so and they’ll decrease your premiums.
In most cases, the reconsideration period will last a couple of years after your policy becomes active. If your treatment has finished and you longer experience symptoms, you may be able to get it removed as an exclusion.
Types of Disability Insurance we offer
- Long-Term Disability Insurance (LTD)
- Short-Term Disability Insurance
- Key Person Disability Insurance
- Self Employed Disability Insurance
- Mortgage Disability Insurance
- Temporary Disability Insurance
- Supplemental Disability Insurance
Other Disability Insurance Resources that you can read
- Are Canadian Disability Insurance Premiums Tax-Deductible?
- Will My Long-Term Disability Income Be Taxable?
- Dealing With Elimination Periods For Short And Long-Term Disability Insurance
- Pregnancy And Disability Insurance
- Who Pays For Disability Insurance?
- Why Employers Offer Disability Insurance
- Maternity Leave And Disability Insurance Benefits
- How Long Do Long-Term Disability Benefits Pay?
- How Much Does Long-Term Disability Insurance Cost?
- Is Disability Insurance Worth It?
- How Much Disability Insurance Should I Get?
- What Does Disability Insurance Cover?
- What To Look For In Disability Insurance?
- Do I Need Disability Insurance After I Retire?
- Does Disability Insurance Cover Pre-Existing Conditions?
- How Does Disability Insurance Work?
- How Long Does Long Term Disability Insurance Pay?
- Is Wage Loss Insurance The Same As Short Term Disability?
- When Does Long Term Disability Insurance Start?
- Can You Buy Your Own Short Term Disability Insurance?
- Can You Get Disability Insurance If You Are Unemployed?
- Can I Buy My Own Short-Term Disability Insurance?
- Can You Get Individual Short Term Disability Insurance?
- Are Credit Cardholders Insured By Disability Insurance Plans?
