Yes, you can get life insurance with pre-existing conditions. Learn how insurers assess diabetes, heart disease, cancer history, and mental health—plus strategies to get approved.
New parent? Here's a practical overview of life insurance for growing families — how cover amounts are commonly calculated, when to arrange it, and how to avoid paying too much.
Should you choose stepped or level premiums? This decision could save you $50,000+ over your policy lifetime. Here's exactly when each option makes sense.
Calculate your exact life insurance coverage needs using three proven methods. Includes real Australian examples, calculators, and expert recommendations.
Let's start with the good news: The majority of Australians with pre-existing conditions successfully obtain life insurance coverage in some form.
If you've been told you can't get covered, or you're worried that your health history makes you uninsurable, this guide is for you. We'll walk through exactly how insurers assess different conditions, what outcomes you can realistically expect, and proven strategies to maximise your approval chances.
Important: Underwriting outcomes (standard rates, loadings, exclusions, or declines) vary significantly between insurers and depend on individual circumstances. The information below is general in nature. Always refer to each insurer's Product Disclosure Statement (PDS) and underwriting guidelines for specific terms.
When you apply for life insurance with a pre-existing condition, your application goes through a process called medical underwriting. This isn't a simple pass/fail—it's a sophisticated risk assessment that weighs multiple factors.
Insurance underwriters evaluate your application against actuarial data—essentially, historical statistics about mortality risk for people with similar health profiles. Here's what they're weighing:
1. Condition Severity and Stage
2. Time Since Diagnosis or Treatment
3. Treatment Compliance
4. Related Complications
5. Lifestyle Factors
6. Family History
When your application is assessed, you'll receive one of four outcomes:
1. Standard Terms (Best Case) Your condition is minor or so well-controlled that you're approved at normal rates with no exclusions.
2. Loaded Premium (Most Common) You're approved, but your premiums are increased by a percentage (loading) to account for elevated risk. The size of the loading depends on the condition, its severity, and the insurer's assessment.
3. Exclusion (Partial Coverage) You're approved, but claims related to your specific condition won't be covered. For example, a heart condition exclusion means a heart attack claim would be denied, but cancer or accident claims would still be paid.
4. Decline (Worst Case) The insurer won't offer coverage at any price. This usually happens with very recent serious diagnoses, multiple severe conditions, or conditions with very poor prognosis.
Different conditions carry different risk profiles. Below, we break down the major categories with realistic expectations for each.
Cancer history is one of the most common reasons people worry about insurability—but many survivors do successfully obtain coverage.
Key Factors for Cancer Assessment:
Typical Waiting Periods and Outcomes by Cancer Type:
| Cancer Type | Typical Waiting Period | Likely Outcome |
|---|---|---|
| Basal cell carcinoma (skin) | 3-6 months | Standard rates possible |
| Early-stage breast (Stage 1) | 2-3 years | Loadings likely |
| Early-stage prostate | 2-3 years | Loadings likely |
| Melanoma (thin, localised) | 2-3 years | Loadings likely |
| Colorectal (Stage 1-2) | 3-5 years | Significant loadings likely |
| Advanced cancers (Stage 3+) | 5-10 years | Cover may be difficult to obtain |
Underwriting outcomes vary significantly between insurers. These are general indications only — refer to each insurer's underwriting guidelines for specific terms.
How common is cancer? 1 in 2 Australians will be diagnosed with cancer by age 85, with 40% of new cases occurring in people aged 25-64. Lifetime treatment costs range from $23,310 (melanoma) to $109,300 (head and neck cancers) — making adequate insurance coverage particularly important for working-age Australians (Source: Zurich Cost of Care Volume 2).
Learn more: Cancer Conditions and Insurance Coverage
Heart disease remains the leading cause of death in Australia, making it a significant underwriting concern. However, modern treatments and risk management mean many heart patients can still obtain coverage.
Common Cardiovascular Conditions:
Typical Underwriting Outcomes:
| Condition | Well-Controlled | Poorly Controlled |
|---|---|---|
| High blood pressure only | Standard rates possible | Loadings likely |
| High cholesterol only | Standard rates possible | Loadings likely |
| Atrial fibrillation (controlled) | Loadings likely | Exclusion likely |
| Heart attack (3+ years ago) | Significant loadings likely | Cover may be difficult to obtain |
| Heart failure | Cover may be difficult to obtain | Cover may be difficult to obtain |
Underwriting outcomes vary significantly between insurers. These are general indications only — refer to each insurer's underwriting guidelines for specific terms.
CVD affects 1 in 6 Australians. The lifetime cost of a heart attack is $95,728, and 34% of heart attack survivors don't return to the same level of work within 2 years (Source: Zurich Cost of Care Volume 2).
What Helps Your Application:
Learn more: Heart and Cardiovascular Conditions
Mental health conditions must be disclosed. Underwriting outcomes vary significantly by insurer, condition, and severity. In general, mental health conditions are more likely to result in an exclusion (particularly on Income Protection and TPD) rather than a premium loading.
Common Mental Health Conditions:
Typical underwriting outcomes (vary by insurer — refer to the relevant PDS):
Factors insurers typically consider:
Important Note: Most insurers apply a 13-month exclusion period for claims related to suicide. This applies regardless of your mental health history. Refer to each insurer's PDS for specific terms.
Mental health affects 1 in 5 Australians in any 12-month period, with affective disorders causing an average 75.4 days absent from work per year (Source: Zurich Cost of Care Volume 2). Early disclosure and stable treatment history generally lead to better underwriting outcomes.
Learn more: Mental Health Conditions and Insurance
Diabetes is one of the most common pre-existing conditions we help clients navigate. The good news is that well-managed diabetes rarely results in decline.
Key Assessment Factors:
Typical Underwriting Outcomes:
| Diabetes Profile | Likely Outcome |
|---|---|
| Type 2, diet-controlled, HbA1c under 6.5% | Standard rates or modest loading |
| Type 2, oral medication, HbA1c under 7.0% | Loadings likely |
| Type 2, insulin, HbA1c under 7.5% | Significant loadings likely |
| Type 1, well-controlled, no complications | Significant loadings likely |
| Any type with complications | Cover may be difficult to obtain |
Underwriting outcomes vary significantly between insurers. These are general indications only — refer to each insurer's underwriting guidelines for specific terms.
Around 2 million Australians live with diabetes. The lifetime cost of Type 1 diabetes is approximately $143,000, while Type 2 diabetes costs around $1,397 per year in ongoing management (Source: Zurich Cost of Care Volume 2). Well-managed diabetes rarely results in outright decline.
Detailed guidance: Life Insurance with Diabetes
Respiratory conditions vary significantly in their impact on insurability.
Common Respiratory Conditions:
Typical Underwriting Outcomes:
| Condition | Mild | Moderate | Severe |
|---|---|---|---|
| Asthma (controlled) | Standard rates possible | Loadings likely | Significant loadings likely |
| Sleep apnoea (treated with CPAP) | Standard rates or modest loading | Loadings likely | Significant loadings likely |
| COPD | Loadings likely | Exclusion likely | Cover may be difficult to obtain |
| Emphysema | Cover may be difficult to obtain | Cover may be difficult to obtain | Cover may be difficult to obtain |
Underwriting outcomes vary significantly between insurers. These are general indications only — refer to each insurer's underwriting guidelines for specific terms.
COPD carries an annual cost of $10,330 per person, while asthma has a lifetime cost of approximately $13,601. Back pain — often a co-morbidity with respiratory conditions — accounts for an average 21.2 days off work per year (Source: Zurich Cost of Care Volume 2).
What Helps Your Application:
Autoimmune Conditions (Rheumatoid arthritis, lupus, multiple sclerosis, Crohn's disease)
Neurological Conditions (Epilepsy, migraines, Parkinson's)
Kidney Disease
HIV/AIDS
| Condition Category | Well-Managed | Moderately Controlled | Poorly Controlled/Severe |
|---|---|---|---|
| Diabetes (Type 2) | Standard rates or modest loading | Loadings likely | Cover may be difficult to obtain |
| Diabetes (Type 1) | Significant loadings likely | Significant loadings likely | Cover may be difficult to obtain |
| High Blood Pressure | Standard rates possible | Loadings likely | Significant loadings likely |
| Heart Attack History | Loadings likely (3+ yrs) | Significant loadings likely | Cover may be difficult to obtain |
| Cancer (early stage) | Loadings likely (2-3 yrs) | Significant loadings likely | Case dependent |
| Cancer (advanced) | Significant loadings likely (5+ yrs) | Case dependent | Cover may be difficult to obtain |
| Depression/Anxiety | Standard rates or modest loading | Loadings or exclusion likely | Exclusion likely |
| Bipolar Disorder | Loadings likely | Significant loadings likely | Cover may be difficult to obtain |
| Asthma | Standard rates possible | Loadings likely | Significant loadings likely |
| Sleep Apnoea | Standard rates or modest loading | Loadings likely | Significant loadings likely |
| Obesity (BMI 30-35) | Loadings likely | N/A | Significant loadings likely (BMI 35+) |
Note: Underwriting outcomes vary significantly between insurers and depend on individual circumstances. These are general indications only — refer to each insurer's underwriting guidelines for specific terms. Loadings may compound for multiple conditions.
Here's a problem with traditional life insurance applications: if you're declined or receive unfavourable terms, that outcome gets recorded. Future applications to other insurers will ask about previous declines, potentially prejudicing your case.
IMFL's Pre-Assessment Process (our Stage 3.5 workflow) solves this problem by evaluating your insurability before formal application.
Step 1: Comprehensive Health Review We gather your complete medical history, current medications, recent test results, and lifestyle factors—similar to what you'd disclose on a full application.
Step 2: Anonymous Insurer Approach We approach underwriters at multiple insurers with your de-identified health profile. This gives us real feedback on likely outcomes without creating a formal application record.
Step 3: Risk Optimisation Advice Based on feedback, we advise whether to proceed, wait (perhaps for better control or more time since diagnosis), or focus on specific insurers known to be favourable for your condition.
Step 4: Strategic Application When you do apply formally, it's to the insurer most likely to offer the best terms for your specific situation.
No Record of Speculative Applications Declined applications stay on your record. Pre-assessment inquiries don't.
Better Terms By targeting the right insurer for your condition, you're more likely to receive favourable terms.
Time Savings Avoid weeks of waiting for applications that were always going to be declined.
Clear Expectations You know what to expect before committing to a formal process.
Our pre-assessment process evaluates your insurability before formal application—protecting your record and finding the best insurer for your situation.
Start Your Free Pre-AssessmentIf you have a pre-existing condition, these strategies can significantly improve your chances of approval and reduce your premiums.
If your condition allows for improvement, spend 6-12 months optimising your health before applying.
For Diabetes: Target HbA1c under 7.0% (ideally under 6.5%) For Blood Pressure: Achieve consistent readings under 140/90 For Mental Health: Demonstrate 12+ months of stability on current treatment
Insurers assess your current health, not just your diagnosis. Documented improvement matters.
Don't make the insurer chase information. Proactively gather:
A complete file demonstrates responsible management and speeds up the underwriting process.
Many conditions have "magic number" waiting periods after which approval rates improve dramatically:
Applying too early can result in decline. Applying after the optimal waiting period can get you standard or lightly loaded rates.
Smoking multiplies the risk associated with almost every pre-existing condition. A diabetic non-smoker will generally receive significantly more favourable underwriting terms than a diabetic smoker, who may face much higher loadings or even decline.
Most insurers require 12 months smoke-free before qualifying for non-smoker rates.
Obesity (BMI over 30) adds its own loading on top of any condition-specific loading. Losing weight before application can:
Even a 5-10kg loss can make a material difference to underwriting outcomes.
Underwriters look favourably on:
Gaps in care suggest non-compliance or avoidance, which increases perceived risk.
Different insurers specialise in different risk profiles. Some are known for:
An experienced adviser knows which insurers to approach for your specific situation.
If you have a pre-existing condition, level premiums can save you significant money long-term.
Stepped premiums start low but increase annually with age. With a loading, these increases compound painfully.
Level premiums start higher but remain fixed. Your loading is applied once, and you don't pay more as you age.
For someone with a significant loading, level premiums often become cheaper than stepped within 10-15 years, depending on the loading size and age at inception.
If you have multiple conditions, get life insurance approved first—it's generally the easiest cover to obtain with pre-existing conditions.
Once you have life insurance in place, you can:
A generalist financial adviser might submit your application to whoever gives them the best commission. A specialist adviser:
This is especially important for complex cases with multiple conditions.
Pre-existing conditions don't just affect insurance premiums—they represent genuine financial risk for your family if you become unable to work or pass away.
According to Zurich's Cost of Care Volume 2 research, the lifetime costs of major conditions can be substantial:
Cancer: Lifetime treatment costs range from $23,310 (melanoma) to $109,300 (head and neck cancers)
Heart Disease: Heart attack lifetime cost is $95,728
Diabetes: Type 1 lifetime cost approximately $143,000; Type 2 annual cost approximately $1,397
Mental Health: 1 in 5 Australians affected in any 12-month period
(Source: Zurich Cost of Care Volume 2)
These costs are precisely why life insurance, TPD, and income protection matter—they replace lost income and cover unexpected expenses when you need protection most.
Get indicative quotes from insurers experienced with your condition. No obligation, free adviser support.
Get Your Free QuoteProper disclosure is non-negotiable. If you fail to disclose a relevant condition and later make a claim, the insurer can:
Under Australian insurance law, you must disclose anything a "reasonable person" would consider relevant to the insurer's decision. This includes:
Scenario: John has mild depression and decides not to mention it. Three years later, he dies in a car accident (completely unrelated to his mental health).
Outcome: The insurer investigates, finds his GP records showing the undisclosed depression, and voids the policy. His family receives nothing.
This isn't a scare tactic—it's exactly how insurers handle non-disclosure. Even when claims are unrelated to the undisclosed condition, the breach of duty allows policy avoidance.
If you're unsure whether something needs disclosure:
Over-disclosure might result in a question or minor loading. Non-disclosure can cost your family everything.
Loadings generally compound. A person with diabetes, high blood pressure, and high cholesterol may receive separate loadings for each condition. Multiple conditions may result in compounded underwriting adjustments. Outcomes vary significantly by insurer — some may weigh condition combinations more heavily than others.
For multiple conditions, the pre-assessment approach becomes even more valuable, as different insurers weigh combinations differently.
A condition diagnosed 10 years ago with perfect control is viewed very differently from the same condition diagnosed 6 months ago.
General rule: The longer you've had a condition without complications, the better your risk profile.
Strong family history (especially first-degree relatives with heart disease, cancer, or diabetes) can increase premiums even if you're personally healthy.
Some insurers are more aggressive about family history loading than others. If you have significant family history but are otherwise healthy, shop around.
If you're pregnant or recently gave birth:
If traditional fully underwritten coverage isn't available or affordable, consider these alternatives:
Most super funds offer automatic acceptance life and TPD insurance without medical underwriting. This is often the easiest coverage to obtain with pre-existing conditions.
Pros:
Cons:
Strategy: Use super insurance as a baseline and supplement with retail coverage where possible.
Some insurers offer "guaranteed acceptance" life insurance with no medical questions.
Pros:
Cons:
When to consider: Only if fully underwritten options are exhausted and you need some coverage.
Funeral insurance is essentially small-sum guaranteed acceptance life insurance marketed for final expenses.
Coverage: Typically $5,000-$15,000 Use case: Cover funeral costs and small debts if other options are unavailable
Some employers offer group life and/or income protection insurance with limited underwriting.
Worth checking: Your HR department may have options you're not aware of.
Standard applications take 2-4 weeks. Applications requiring medical evidence (most pre-existing conditions) typically take 4-8 weeks. Complex cases with multiple conditions or unusual circumstances can take 8-12 weeks.
Our pre-assessment process can identify issues upfront, reducing wasted time on applications likely to be declined.
Technically yes, but it's not recommended. Multiple simultaneous applications can appear suspicious to underwriters, and you must disclose all current applications.
A better approach: use pre-assessment to identify the best insurer for your situation, then apply there first.
It depends on why you were declined. If the reason was:
Most policies lock in the premium loading at inception. However, you can:
Some insurers will review loadings after a period (often 5 years) if you can demonstrate sustained health improvement.
Sometimes waiting is strategic (e.g., to pass the 2-year post-cancer mark). But waiting also means:
Our pre-assessment can help determine whether waiting would materially improve your outcome or whether you should apply now.
If you have a pre-existing condition and need life insurance, here's your action plan:
1. Gather Your Medical History Compile records, test results, medication lists, and specialist reports. Better documentation means faster, more accurate underwriting.
2. Optimise What You Can If there's room for improvement (HbA1c, blood pressure, weight, smoking), spend 3-6 months optimising before applying.
3. Request a Pre-Assessment Our Stage 3.5 pre-assessment process evaluates your insurability before formal application, protecting your record and identifying the best insurer for your situation.
4. Apply Strategically With pre-assessment guidance, apply to the insurer most likely to offer favourable terms. Disclose everything fully and respond promptly to underwriter requests.
5. Review and Adjust Once covered, review your insurance annually. If your health improves significantly, you may be able to obtain better terms with a new policy.
A pre-existing condition shouldn't mean your family goes unprotected. While the process may be more complex and premiums may be higher, the vast majority of Australians with health conditions can obtain meaningful coverage.
The key is approaching the process strategically: timing your application appropriately, choosing the right insurer, documenting your health thoroughly, and working with advisers who specialise in complex cases.
Don't let uncertainty stop you from protecting your family. Start with a pre-assessment to understand your options—no formal application, no record, just clear guidance on your path forward.
Start with our free pre-assessment. We'll evaluate your insurability, identify the best insurers for your situation, and guide you through the process.
Get Your Free Pre-AssessmentImportant Information
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.
AR: 1244847 | AFSL: 246623