Buying insurance before or after a diagnosis: what changes
Timing changes everything in insurance. The same person can get very different terms depending on whether they buy cover before or after a medical diagnosis. Understanding this is one of the strongest arguments for buying early.
Buying before a diagnosis
- You are underwritten as healthy, so premiums are lower and approval is easier.
- Conditions diagnosed later are treated as new illnesses, covered subject to the normal terms.
- You serve waiting periods while healthy, so cover is fully active when you need it.
Buying after a diagnosis
- The condition is now pre-existing. You must disclose it, and it is covered only after the applicable waiting period.
- The insurer may load the premium, exclude the condition, or decline cover for it.
- Non-disclosure to get around this is the leading cause of rejected claims, and is not worth the risk.
If you are already diagnosed
You still have options: disclose fully, accept the waiting period or loading, and compare insurers, since their treatment of specific conditions varies. Cover with a served waiting period is far better than none. Read claiming for an existing disease for the mechanics.
The lesson
The best time to buy is before you have a reason to. Buying while healthy locks in lower premiums and clean terms, and gets your waiting periods out of the way.