Should you disclose pre-existing illnesses while buying health insurance?

Posted on: May 6, 2021 | | Written by:

Should you disclose pre-existing illnesses while buying health insurance?

Published on May 6, 2021. EST READ TIME: 3 minutes

Is it wise to declare pre-existing diseases while buying health insurance plan?

We are all aware of the importance of medical insurance, but selecting the best one is no mean task. With so many plans being offered by different insurers, finding one that fits the needs and budget requires extensive research. While researching, we frequently come across a condition that requires us to declare any pre-existing disease we may have.

People frequently become perplexed at this point. They are troubled by the ‘should they, should they not' dilemma. It happens majorly because people are concerned that any pre-existing disease they may disclose will create obstacles in the future, causing their claim requests to be denied. But what if the insurer discovers that you failed to disclose information about a pre-existing ailment?

What is a pre-existing disease?

A pre-existing disease is any ailment, illness, or health condition that you had at the time you purchased a medical insurance policy. In other words, it refers to any disease that you were diagnosed with by a physician within 48 months of purchasing the policy. Diabetes, cancer asthma, hypertension, and cardiac conditions, are just a few examples of common pre-existing diseases.

Are pre-existing diseases covered in health insurance policies?

Yes, most policies cover pre-existing diseases, but only after a waiting period. The waiting period varies depending on the plan you purchased and your age, and it can range from 1 to 4 years. If you fall sick due to a pre-existing condition and need hospitalisation during this period, your medical expenses will not be covered. The waiting period applies only once, when your policy is activated. Pre-existing illnesses will be covered once the waiting period is over and you renew your policy every year.

However, some insurance companies offer `Waiver’ of pre-existing disease coverage, which means that your pre-existing illnesses will be covered in the policy and you will not be required to wait for the waiting period. The waiver is a benefit coverage that waives exclusions and covers medical expenses that may arise as a result of a pre-existing condition.

Why is it wise to declare pre-existing disease?

Many of us may believe that disclosing pre-existing diseases at the time of purchasing the policy may lead to claim rejection. And if the policy is approved without disclosing the pre-existing conditions, the premium will increase. However, if you hide your pre-existing conditions and the insurance provider discovers them later, your claim will almost certainly be rejected. The insurer will consider the policy null and avoid.

It is best to be honest about your pre-existing conditions and other details in the application form for a smooth claim settlement. Yes, you will not be covered until the waiting period expires, but it is better to wait than to have your claim rejected.

So, if you have any medical conditions, declare them right away because the policy is underwritten based on your health declaration. You cannot make any declarations after purchasing the policy. False information constitutes a breach of trust, as the insurer relies on you to provide correct information.

Conclusion

When purchasing a medical insurance policy, you must be truthful about your past and current medical history. Because health insurance policies differ, you should carefully read the terms and conditions, as well as the waiting periods and the list of pre-existing diseases covered by your policy. Hiding any sort of information from your insurer can result in not only claim rejection but also policy cancellation. Conduct thorough research and purchase a health insurance policy with a short waiting period so that your pre-existing illnesses are covered as soon as possible.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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