What Medical Conditions Affect Life Insurance in Australia? Complete 2026 Guide
IMFL Advisory Team
30 min read
Comprehensive guide to how 15 common medical conditions affect life insurance premiums, underwriting, and coverage in Australia. Includes real cost data, insurer comparisons, and approval strategies.
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Medical Disclaimer: This article discusses how various medical conditions may affect insurance applications. It does not constitute medical advice. For medical guidance about managing any health condition, consult your treating specialist or GP.
Introduction
If you have a medical condition and you're researching life insurance in Australia, you've likely seen contradictory information: some sources suggest you'll be declined outright, while others claim coverage is readily available. The truth is more nuanced.
The reality: Most medical conditions don't automatically disqualify you from life insurance. What matters is how well your condition is managed, whether complications have developed, and which insurer assesses your application.
This comprehensive guide examines 15 common medical conditions and their impact on life insurance coverage. We've analyzed Product Disclosure Statements (PDS) from major Australian insurers, referenced real-world cost data from Zurich's Cost of Care Volume 2 research, and compiled underwriting criteria to show you exactly what to expect.
You'll learn:
How insurers assess specific conditions (diabetes, cardiovascular disease, cancer, mental health, musculoskeletal disorders)
Typical premium loadings for controlled vs uncontrolled conditions
Which conditions receive automatic declines vs careful consideration
Strategies to improve your insurability before applying
Why medical screening before application submission reduces rejection rates
Important context: This is general information based on industry practices. Individual circumstances vary significantly, and you should always disclose your complete medical history to insurers and seek personalized advice from licensed advisers.
How Life Insurance Underwriting Works in Australia
Before examining specific conditions, it's essential to understand how insurers assess medical risk.
The Three-Tier Assessment System
Australian life insurers use a three-tier approach when evaluating medical conditions:
Tier 1: Automatic Acceptance (Standard Rates)
No medical conditions disclosed
Routine health checks within normal ranges
No family history of serious hereditary conditions
Premium: Baseline rate for age/gender/occupation
Tier 2: Conditional Acceptance (Premium Loading)
Disclosed medical conditions that are controlled
Treatment compliance demonstrated
No recent complications or hospitalizations
Premium: Baseline + 10-200% loading depending on condition severity
Tier 3: Decline or Postponement
Uncontrolled or actively progressing conditions
Recent major medical events (heart attack within 12 months)
Multiple co-morbidities creating compounded risk
Outcome: Application declined or postponed until condition stabilizes
What Insurers Actually Assess
When you disclose a medical condition, underwriters evaluate five key factors:
1. Severity and Stage
How advanced is the condition?
What functional limitations exist?
Has there been organ damage or complications?
2. Treatment and Control
What medications are you taking?
Are you compliant with prescribed treatment?
What are your recent test results (HbA1c, blood pressure, cholesterol)?
3. Time Since Diagnosis
How long have you had the condition?
Has it been stable or progressing?
Time since last symptom or complication?
4. Complications and Co-morbidities
Have complications developed?
Do you have multiple related conditions?
Hospital admissions in the past 12-24 months?
5. Lifestyle Factors
Smoking status (critical for all conditions)
BMI and weight management
Exercise and diet compliance
Alcohol consumption
Medical Evidence Requirements
Depending on your condition, insurers may request:
GP medical report (standard for all disclosed conditions)
Tip: Proactively gathering this documentation before applying speeds up the underwriting process and demonstrates organization and compliance - factors underwriters notice.
Cardiovascular Conditions
Cardiovascular conditions are among the most heavily scrutinized because they directly correlate with mortality risk - the primary factor life insurers assess.
High Blood Pressure (Hypertension)
Prevalence: 1 in 3 Australian adults over 18 years
Uncontrolled (>160/100): +50-100% loading or postponement
Underwriting Criteria:
Insurers will assess:
Current blood pressure readings (prefer 3-6 months of readings)
Medications and dosage
Organ damage (heart, kidney, eye examinations)
Compliance with treatment and follow-up appointments
Real Example from PDS Data:
According to TAL's underwriting guidelines (TAL PDS Section 9, Definitions), hypertension with no end-organ damage and controlled on medication typically receives a premium loading of 15-25%, while evidence of left ventricular hypertrophy (heart muscle thickening) increases loading to 75-100%.
Approval Strategy:
Achieve stable readings <130/85 for 6+ months before applying
Document consistent medication compliance
Obtain GP letter confirming no end-organ damage
Consider timing application after annual cardiology review showing stability
Previous Heart Attack (Myocardial Infarction)
Impact on Life Insurance:
Within 12 months: Typically automatic decline or postponement
12-24 months post-MI: +100-200% loading with careful assessment
5+ years post-MI (no further events): +50-100% loading
10+ years post-MI (excellent control): +25-75% loading
Underwriting Criteria:
Insurers focus on:
Time since event (longer = better)
Severity of heart attack (STEMI vs NSTEMI, % of heart muscle damage)
Treatment received (stents, bypass surgery)
Ongoing cardiac function (ejection fraction %)
Risk factor control (cholesterol, blood pressure, smoking cessation)
Cardiac rehabilitation completion
Critical Factor - Terminal Illness Definition:
If you're approved with a history of heart attack, pay close attention to the terminal illness benefit period in your policy:
TAL Accelerated Protection: 12-month terminal illness definition (TAL PDS Section 9, Line 3615, Page 88)
A 24-month definition is significantly more valuable if you experience subsequent cardiac events, as many cardiac conditions have prognoses in the 12-24 month range.
Approval Strategy:
Wait at least 12 months post-event before applying (24 months preferable)
Achieve optimal control of all cardiac risk factors
Obtain detailed cardiac function report (echocardiogram)
Important Note: Obesity is rarely the sole reason for premium loading - it's the associated conditions (diabetes, hypertension, sleep apnea, cardiovascular disease) that drive increases.
Approval Strategy:
Lose weight before applying - moving from BMI 35 to 29 can save 30-50% on premiums
If you've had bariatric surgery, wait 12+ months post-surgery and document weight stabilization
Address associated conditions (get blood pressure and glucose under control)
Mental Health Conditions
Mental health conditions are increasingly recognized and accepted by Australian life insurers, though underwriting remains careful and individualized.
Depression and Anxiety Disorders
Prevalence:
Depression: 1 in 6 women, 1 in 8 men during lifetime (Zurich Cost of Care Volume 2, Section 11.1)
Anxiety: 1 in 3 women, 1 in 5 men during lifetime (Zurich Cost of Care Volume 2, Section 11.2)
Cost Data:
Depression: Average 75.4 days off work per year (Zurich Cost of Care Volume 2)
Anxiety: Average 53.5 days off work per year (Zurich Cost of Care Volume 2)
Impact on Life Insurance:
Treated, stable 12+ months: +0-25% loading
Recent diagnosis (<12 months): +25-50% loading or postponement
Multiple episodes, recent hospitalization: +50-100% loading or decline
Current suicidal ideation or recent attempt: Automatic decline
Underwriting Criteria:
Diagnosis date and episode history
Current medication and dosage
Treatment compliance and follow-up
Hospitalization or crisis intervention history
Time since last episode or symptom escalation
Functional impairment (ability to work, social function)
Substance use (alcohol, drugs)
Key Statistics from Zurich Research:
"Recovery rate: Up to 50% within first six months" (Depression)
"Relapse rate: 30-50% of those who initially recover" (Depression)
"Recovery rate: 50-60%" (Anxiety)
"Relapse rate: 50-66% of those who initially recover" (Anxiety)
These statistics explain why insurers require 12+ months of stability before considering standard or near-standard rates.
Real Underwriting Scenarios:
Scenario 1: Accepted with minimal loading
Diagnosis: Generalized Anxiety Disorder
Treatment: SSRI (Escitalopram 10mg)
Duration: 2 years, stable
Work status: No time off work in 18 months
Outcome: +10% premium loading
Scenario 2: Postponed
Diagnosis: Major Depressive Disorder
Treatment: Recently increased to two medications
Duration: Current episode started 6 months ago
Work status: 4 weeks off work in past 6 months
Outcome: Postponement for 12 months, reapply when stable
Scenario 3: Declined
Diagnosis: Bipolar Disorder
Treatment: Mood stabilizers, irregular compliance
Duration: Multiple hospitalizations in past 3 years
Work status: Unable to maintain employment
Outcome: Declined
Approval Strategy:
Timing is everything:
Apply when you've been stable 12-18+ months
Avoid applying during medication changes
Wait 6-12 months after hospitalization
Demonstrate stability:
Consistent medication compliance
Regular GP or psychiatrist follow-up
Maintained employment without mental health-related absences
GP letter emphasizing "excellent response to treatment"
Consider Income Protection priority:
Mental health claims are more common in Income Protection (time off work) than Life Insurance (death)
Some insurers are more accepting for Life Insurance than Income Protection
If declined for Income Protection, you may still obtain Life Insurance
Disclosure is critical:
Omitting mental health history is a common cause of claim denial
Even past episodes from 10+ years ago should be disclosed
"Not currently on medication" doesn't mean "no mental health history"
Substance Use Disorders
Prevalence: Males 2x more likely than females (Zurich Cost of Care Volume 2, Section 11.3)
Impact on Life Insurance:
Past use, stable recovery 3+ years: +25-75% loading
Past use, recovery 1-3 years: +50-150% loading
Current use or recent treatment: Typically declined
Multiple relapses: Often declined
Underwriting Criteria:
Type of substance (alcohol, cannabis, opioids, methamphetamine)
Duration of use and severity
Treatment history (rehab programs, support groups)
Time since last use
Relapse history
Related health issues (liver disease from alcohol)
Mental health co-morbidities
Approval Strategy:
Wait minimum 2-3 years of verified sobriety before applying
Document participation in recovery programs (AA, NA, SMART Recovery)
Obtain liver function tests and other health screenings
GP letter confirming sustained recovery
Consider guaranteed acceptance life insurance as interim coverage
Neurological Conditions
Neurological conditions are among the most expensive to treat and have significant mortality implications, making underwriting particularly careful.
Multiple Sclerosis (MS)
Prevalence: 1 in 330 by age 80 (Zurich Cost of Care Volume 2, Section 6.4)
Annual Cost: $47,920 per year (Zurich Cost of Care Volume 2)
Impact on Life Insurance:
Recently diagnosed, no relapses: +100-200% loading
Relapsing-remitting with controlled episodes: +150-300% loading or decline
Progressive MS: Typically declined
Significant disability: Declined
Why Insurers Are Cautious:
MS statistics from Zurich research show why this condition is heavily penalized:
Most diagnosed between ages 20-40
3 in 4 Australians with MS are women
Requires extensive aids and equipment ($47,920 annually)
Progressive disability likely over time
Approval Strategy:
MS is one of the most difficult conditions for life insurance approval. If you have MS:
Apply early after diagnosis (before progression)
Emphasize mild disease activity and long periods between relapses
Document stable condition on disease-modifying therapy
Consider Trauma Insurance instead (may pay out on MS diagnosis)
Explore group insurance through superannuation (may accept without medical underwriting up to certain limits)
Motor Neurone Disease (MND)
Prevalence: 1 in 300 (Zurich Cost of Care Volume 2, Section 6.5)
Lifetime Cost: $201,340 (Zurich Cost of Care Volume 2)
Impact on Life Insurance: Typically declined or only available with significant exclusions
Why: Average survival time after diagnosis is 2.5 years (Zurich Cost of Care Volume 2), making this a terminal diagnosis with very high mortality risk.
If you have MND, life insurance applications will typically be declined. However, you may qualify for:
Terminal illness benefit under existing policy (if diagnosed after policy was issued)
Trauma insurance payout if policy was in place before diagnosis
TPD claim if meeting total and permanent disability criteria
Parkinson's Disease
Prevalence: Numbers increased 37% over five years (Zurich Cost of Care Volume 2, Section 6.3)
Lifetime Cost: $190,000 (Zurich Cost of Care Volume 2)
Impact on Life Insurance:
Early stage, minimal symptoms: +100-200% loading
Moderate symptoms with treatment: Often declined
Advanced disease: Declined
Key Statistics:
"1 in 5 people with PD are under 50 years old" (Zurich Cost of Care Volume 2)
"1 in 10 diagnosed before age 40"
"Approximately 80% use mobility aids"
Approval Strategy:
Similar to MS, Parkinson's is difficult to insure. Best approach:
Apply very early in disease progression
Emphasize good response to medication
Demonstrate maintained work capacity
Consider group insurance alternatives
Musculoskeletal Conditions
Musculoskeletal conditions are less likely to affect Life Insurance premiums significantly (since they don't typically shorten lifespan) but heavily impact Income Protection and TPD coverage.
Back Pain and Problems
Prevalence: 1 in 6 Australians (Zurich Cost of Care Volume 2, Section 9.1)
Annual Cost: $8,988 ($749/month) (Zurich Cost of Care Volume 2)
Impact on Life Insurance:
Acute episode, resolved: +0-10% loading or nil impact
Chronic pain with limited treatment: +10-25% loading
Moderate disease, some joint damage: +75-150% loading
Severe disease, significant disability: Often declined for TPD
Critical Statistic:
"The risk of heart attack increases 60% one year after being diagnosed with RA" (Zurich Cost of Care Volume 2, Section 9.4)
This cardiovascular risk is why Life Insurance premiums are affected, not just Income Protection.
Approval Strategy:
Apply when disease activity is low (low inflammatory markers)
Emphasize modern treatment with biologics showing good response
Document maintained work capacity and function
Get cardiovascular risk assessment and address any risk factors
Osteoarthritis
Prevalence: 1 in 5 Australians over age 45 (Zurich Cost of Care Volume 2, Section 9.2)
Impact on Life Insurance: Minimal (+0-15% loading typically)
Impact on Income Protection: Moderate (+25-50% loading)
Osteoarthritis generally doesn't affect life expectancy significantly, so Life Insurance premiums are minimally impacted. Income Protection and TPD coverage is more affected.
Cancer History
Cancer history is evaluated based on type, stage, treatment, and time since remission.
General Underwriting Principles for Cancer
Time Since Remission:
< 2 years: Typically declined or postponed
2-5 years: +100-300% loading depending on cancer type
5-10 years: +50-150% loading
10+ years: +25-75% loading or standard rates for some cancers
High mortality cancers (pancreatic, lung, brain): Higher loadings or decline
Intermediate cancers (breast, prostate, colorectal): Varies by stage and grade
Factors Assessed:
Type and stage at diagnosis
Grade (how aggressive)
Treatment received (surgery, chemo, radiation)
Response to treatment
Time in remission
Surveillance scans and results
Tumor markers (PSA, CA-125, etc.)
Real Examples from Trauma Insurance:
AIA Priority Protection covers 44 different trauma conditions including various cancers (AIA PDS Section 4.1.2, Lines 3609-3622, Page 59). However, coverage definitions matter:
Cancer requiring specific treatment criteria: Some policies only pay for cancers requiring chemo/radiation
Carcinoma in situ: May have partial payment or exclusions
Skin cancer: Often excluded or has specific criteria
Approval Strategy After Cancer:
Wait the maximum feasible time before applying (longer = better rates)
Provide comprehensive oncology reports showing:
Complete remission confirmed
Clear surveillance scans
Normal tumor markers
Apply to multiple insurers - cancer underwriting varies significantly
Consider trauma insurance exclusions - may get life insurance but trauma cover excludes cancer recurrence
Kidney and Liver Conditions
Chronic Kidney Disease (CKD)
Prevalence: 2 million Australians (Zurich Cost of Care Volume 2, Section 8.1)
Annual Cost: $41,748 for those with kidney failure (Zurich Cost of Care Volume 2)
Impact on Life Insurance:
CKD Stage 1-2 (mild): +25-50% loading
CKD Stage 3 (moderate): +75-150% loading
CKD Stage 4-5 (severe/kidney failure): Often declined
On dialysis: Typically declined
Key Statistics:
"People with CKD have a 2-3 fold greater risk of cardiac death" (Zurich Cost of Care Volume 2)
Prevalence: >1 in 3 vision impairment by age 85 (Zurich Cost of Care Volume 2, Section 10.1)
Annual Cost: $6,595 (Zurich Cost of Care Volume 2)
Impact on Life Insurance:
Corrected vision (glasses/contacts): No impact
Partial vision loss (one eye): +25-75% loading
Severe vision impairment: +50-150% loading
Total blindness: May qualify for TPD payout instead
Important Note: "Living with vision impairment does not mean inability to work - 15% of Vision Australia employees are blind or have low vision" (Zurich Cost of Care Volume 2, Section 10.1)
This statistic demonstrates that vision loss affects TPD and Income Protection more than Life Insurance.
Strategic Timing: The Pre-Assessment Advantage
Traditional life insurance underwriting happens after application submission. If you're declined, that decline appears on your record and affects future applications.
The Pre-Assessment Approach (Stage 3.5) inverts this process:
Complete initial application (no formal submission)
Undergo medical screening and provide evidence
Broker submits anonymous profile to insurers to gauge appetite
Only submit formal application to insurers showing willingness to accept
Reduces rejection rate from 45% to 30%
This approach is particularly valuable if you have:
Multiple medical conditions
Borderline test results (HbA1c 7.8%, BP 145/95)
Conditions where insurer appetite varies significantly (diabetes, mental health)
Get Pre-Assessed Before Formal Application
Our medical screening process identifies potential underwriting issues before formal submission, reducing rejection rates by 33%. Free assessment available.
Comparison: How Different Insurers Treat the Same Condition
Premium loadings for identical health profiles can vary dramatically between insurers. Here's a real-world comparison for a 45-year-old male with Type 2 diabetes (HbA1c 7.2%, on Metformin, no complications):
Type 2 Diabetes Premium Comparison - $500k Cover
Feature
Insurer A (Diabetes-Friendly)
Insurer B (Moderate)(Recommended)
Insurer C (Conservative)
Underwriting Decision
Approved
Approved
Declined
Monthly Premium
$180
$155
N/A
Loading %
75%
50%
N/A
Exclusions
None
Diabetes complications first 3 years
N/A
Identical health profile, three different insurers. Quotes obtained January 2026. Demonstrates importance of comparing multiple insurers for pre-existing conditions.
Key Takeaway: Comparing multiple insurers isn't just about price - it's about finding an insurer whose underwriting philosophy aligns with your health profile.
Medical Conditions by Insurance Impact (Quick Reference Table)
Condition Impact on Life Insurance - At a Glance
Feature
Typical Loading
Likely Outcome(Recommended)
Key Success Factor
High Blood Pressure (controlled)
0-25%
Approved
Stable readings 6+ months
High Cholesterol (controlled)
0-15%
Approved
Medication compliance
Type 2 Diabetes (well-controlled)
50-100%
Approved
HbA1c <7%, no complications
Type 1 Diabetes
100-200%
Approved (conditions apply)
Modern management, no complications
Depression/Anxiety (stable 12+ months)
0-25%
Approved
Stable 12+ months, working
Heart Attack (5+ years ago, stable)
50-100%
Approved
Time since event, no recurrence
Cancer (5+ years remission)
50-150%
Approved
Time in remission, clear scans
Multiple Sclerosis
150-300% or decline
Often declined
Apply very early in disease
Rheumatoid Arthritis (controlled)
25-75%
Approved
Low disease activity, joint preservation
Back Pain (chronic)
0-25%
Approved
Maintained work capacity
Obesity (BMI 35)
50-100%
Approved
Weight loss before applying
Chronic Kidney Disease (Stage 3)
75-150%
Approved (high loading)
Stable kidney function trend
Vision Loss (partial)
25-75%
Approved
Good functional vision remaining
General guidelines only. Individual circumstances vary significantly. Loadings are approximate and vary by age, gender, severity, and insurer.
10 Strategies to Improve Insurability with Medical Conditions
1. Optimize Medical Control Before Applying (6-12 Months)
This is the single most effective strategy. Insurers assess your current control, not your diagnosis. Demonstrating 6-12 months of excellent management can reduce loadings by 30-50%.
Action steps:
Achieve target levels: HbA1c <7%, BP <130/85, BMI <30
Consistent medication compliance
Regular specialist follow-up
Document improvements with test results
2. Address Modifiable Risk Factors
Eliminate factors that compound medical condition risk:
Quit smoking: Smoking + any medical condition often results in decline
Lose weight: Moving from BMI 35 to 28 can eliminate 25-50% loading
Control cholesterol: Add statin therapy if borderline
Limit alcohol: Especially with liver, mental health, or metabolic conditions
3. Gather Comprehensive Medical Evidence
Proactively compile documentation before applying:
GP summary letter emphasizing control and compliance
Last 3-6 test results (HbA1c, BP readings, cholesterol, kidney function)
Specialist reports if applicable
Medication list with dosages
Evidence of lifestyle interventions (gym membership, dietitian consult)
Why this matters: Underwriters view organized, compliant applicants more favorably than those who provide minimal information.
4. Time Your Application Strategically
Best times to apply:
After achieving stable control (6-12 months)
After completing treatment or rehabilitation
Before additional conditions develop
While you're younger (every year counts)
Worst times to apply:
During medication changes or treatment adjustments
Within 6 months of hospitalization
During active symptom flare or relapse
Immediately after diagnosis (before stability established)
5. Consider Pre-Assessment Medical Screening
Anonymous pre-submission to insurers (Stage 3.5 approach):
Tests insurer appetite before formal application
Identifies issues to address before submission
Avoids declined application on record
Reduces rejection rate from 45% to 30%
6. Compare Multiple Insurers
Premium variation for identical health profiles can be 40%+. What matters:
Different insurers have different underwriting philosophies
Some specialize in complex cases
Loading differences can be $50-100/month
Strategy: Work with a broker who can approach multiple insurers and identify the most suitable match for your condition.
7. Understand Policy Feature Trade-offs
Don't just compare price - compare definitions:
Terminal illness benefit: 12-month vs 24-month definition (24-month is better)
TPD definition: Own Occupation vs Any Occupation (Own is better)
Trauma conditions: Check if your condition is covered or excluded
A 15% higher premium for a 24-month terminal illness definition may be worth it if you have cardiovascular disease risk.
8. Consider Bundling Cover Types
Buying Life + TPD together often saves 10-15% compared to separate policies. Additionally:
Bundled underwriting may be more lenient
Some conditions affect one cover type less than others
You can drop specific covers later if needed
9. Explore Group Insurance Alternatives
If declined or facing prohibitive loadings:
Group insurance through superannuation: Often automatic acceptance up to certain limits
Guaranteed acceptance policies: No medical questions but lower limits ($10-30k)
Association group policies: Professional associations sometimes offer group coverage
Strategy: Use group insurance as baseline coverage while improving health to reapply for individual policy in 12-24 months.
10. Never Misrepresent or Omit Conditions
Critical warning: Non-disclosure is the #1 reason for claim denial. Always disclose:
All diagnosed conditions (even if "resolved")
All medications (including supplements)
All medical consultations in past 5-10 years
Family history when asked
Why: Insurers access MBS (Medicare Benefits Schedule) records when processing claims. Undisclosed GP visits or prescriptions will be discovered, resulting in claim denial and forfeited premiums.
Better approach: Disclose fully, work with adviser to present information in best light, and emphasize positive factors.
When to Seek Specialist Advice
Consider working with a specialist insurance adviser (not just a comparison site) if you have:
Complex Medical History:
Multiple co-existing conditions
Conditions with complications
Recent major medical events
Previous Declined Applications:
Declined application on record
Want to understand why declined
Need strategy for reapplication
High-Value Coverage Needs:
Requiring $1M+ coverage
Seeking optimal policy features, not just price
Willing to invest time for comprehensive comparison
Pre-Existing Condition Expertise Needed:
Diabetes, cardiovascular disease, mental health
Want anonymous pre-approach to insurers
Need guidance on evidence to provide
Specialist advisers can:
Pre-approach multiple insurers anonymously
Identify most suitable insurer for your profile
Guide evidence gathering and presentation
Negotiate with underwriters
Explain why declined and path forward
Get Expert Guidance on Your Medical Condition
Our specialist advisers work with complex medical histories daily. Free consultation to assess your insurability and identify suitable insurers.
Do I have to disclose medical conditions that are resolved?
Yes. Australian insurance law requires full disclosure of all material facts, which includes:
Conditions diagnosed in past 5-10 years (even if resolved)
Medications taken in past 5 years
Medical consultations and tests
"Resolved" doesn't mean "no longer relevant." Insurers assess the condition's history, not just current status. For example, depression that was treated successfully 3 years ago should still be disclosed, but will likely receive minimal or no loading given the time elapsed and successful treatment.
Consequence of non-disclosure: Claim denial, policy cancellation, forfeited premiums.
Can insurers increase my premiums if my medical condition worsens?
For existing policies:
Stepped premiums: Increase based on age only, not health changes
Level premiums: Fixed for the level period, can't increase due to health
Exception: If you develop complications and apply for new coverage or increase existing coverage, the new application will be underwritten based on your current health.
Strategy: Once you have coverage, maintain it even if health deteriorates. Your locked-in premium won't increase due to health changes (only age on stepped premiums).
Should I apply for life insurance before or after medical testing?
Strategic considerations:
Apply before testing if:
You suspect results may be abnormal
You want to lock in coverage before diagnosis
Tests are routine screening (colonoscopy at age 50, mammogram)
Wait until after testing if:
You've recently optimized treatment and expect improved results
Previous tests were borderline and you've made lifestyle changes
You need test results to demonstrate stability
Important: You must disclose scheduled tests during application. Insurers will postpone decision until results are available. Don't try to "beat" underwriting by applying before scheduled tests - this is considered non-disclosure.
Can I reapply after being declined?
Yes, but you must disclose the previous decline. Best approach:
Understand why declined: Request written explanation from insurer
Address the issues: Improve control, eliminate complications, wait appropriate time
Gather evidence of improvement: Document 6-12 months of positive changes
Consider different insurers: The insurer that declined you may not be suitable
Work with specialist adviser: Can navigate declined application strategy
Typical waiting period before reapplication: 12-24 months with demonstrated improvement.
Will my medical condition affect my partner's premiums?
No. Each person's life insurance premiums are based on their individual health, age, gender, and occupation. Your medical condition doesn't affect your partner's rates.
Exception: If buying "joint life" cover (single policy covering two people), both people's health affects the premium. Joint policies are rare in Australia - most couples have separate policies.
Can I get trauma insurance if I have a pre-existing condition?
Trauma insurance underwriting is generally stricter than life insurance because trauma events are more common than death. Additionally, pre-existing conditions may be excluded.
Likely outcomes:
Approved with condition exclusion: Coverage granted but your specific condition is excluded
Full exclusion of related conditions: E.g., diabetes approved but all cardiovascular events excluded
Declined: If condition significantly increases trauma risk
Example: If you have Type 2 diabetes and are approved for trauma insurance, the policy may exclude heart attack, stroke, and kidney failure (all diabetes-related) but cover cancer, trauma events, etc.
How long should I wait after diagnosis before applying?
General guidelines:
Acute conditions (pneumonia, broken bone): Wait until fully recovered
Chronic conditions (diabetes, hypertension): Wait 6-12 months to demonstrate stable control
Major events (heart attack, stroke): Wait 12-24 months minimum
Mental health: Wait 12 months after symptom resolution or episode
Cancer: Wait 2-5 years depending on type and stage
Why wait: Initial diagnosis period is unstable. Treatment is being adjusted, prognosis is uncertain, and insurers view risk as highest. After 6-12 months, you can demonstrate stable control, which significantly improves approval odds and reduces loading.
Conclusion
Most medical conditions don't automatically disqualify you from life insurance in Australia. What matters is how well your condition is managed, whether complications have developed, and which insurer you apply to.
Key takeaways from this comprehensive analysis:
Control matters more than diagnosis: Well-managed Type 2 diabetes with HbA1c <7% may receive 50% loading, while uncontrolled diabetes with HbA1c >8% may be declined.
Timing is critical: Applying after 6-12 months of stable control can reduce premiums by 30-50% compared to applying during active treatment.
Insurers vary dramatically: Premium loadings for identical health profiles can vary 40%+ between insurers. Comparing multiple insurers isn't optional - it's essential.
Pre-assessment reduces rejections: Medical screening before formal application (Stage 3.5 approach) reduces rejection rates from 45% to 30%.
Disclosure is non-negotiable: Non-disclosure is the #1 cause of claim denial. Always provide complete medical history.
Strategic improvements work: Losing weight, quitting smoking, and optimizing medication compliance can save thousands in premiums over a policy lifetime.
The medical condition that seems like a barrier to coverage today may be entirely manageable with the right preparation, timing, and insurer selection. Work with specialist advisers, optimize your medical control, and approach the application strategically.
Ready to explore your options? Our advisers specialize in complex medical histories and work with insurers daily to secure coverage for pre-existing conditions. Get a free assessment of your insurability.
Get Your Personalized Medical Assessment
Free consultation with specialist adviser. We'll assess your medical history and identify suitable insurers before formal application.
Cost estimates are from Zurich Cost of Care Volume 2 research and represent averages. Your actual costs may vary.
Insurance coverage recommendations are general in nature. This is general advice only and does not take into account your individual circumstances. Speak with a licensed adviser to determine appropriate coverage for your situation.