Buying health insurance? Heres why it is important to disclose your pre-existing medical conditions

Health Insurance: Healthcare costs are skyrocketing and the COVID-19 outbreak has contributed significantly to it. It poses the risk of a heavy financial burden. This is when health insurance can come in handy. However, there are several things one needs to keep in mind at the time of purchasing health insurance. While opting for a decent coverage amount - preferably it should be about 50 per cent of your total annual income - is important, one must not forget to share all the details with the insurance provider. Among the common mistakes that people do while buying a health insurance policy is that they fail to disclose pre-existing conditions or diseases. 

The reason why people fight shy of disclosing pre-existing illnesses is that they fear it will lead to policy rejections, or at least a higher premium. 

According to Sunil Padasala - Chief Innovation & Strategy Officer, Assurekit - it is important to share all details as insurers base the premium on the information provided by the person buying the health insurance.
 
"It's very important to disclose all and any pre-existing conditions to insurers because insurance operates on the concept of "Uberimma Fides" or "Utmost good faith".  Insurers base the premium and assess risk on the information that you provide on the assumption that you have been completely truthful.  If this information is incorrect, insurers will have the grounds to reject your claim," Padasala said.

So, while not disclosing pre-existing conditions might lower your premiums, you will run into issues at the time of claim, a hassle that can be and should be avoided.

Komal Chhabra - AVP, Customer Success, Pazcare - said that even minor pre-existing health conditions should be disclosed while buying insurance. 

"COVID-19 pandemic period brought in more awareness about the importance of health insurance, having said that, there is a significant factor of pre-existing ailment declaration. In layman's language, it is important that any pre-existing health issues like hypertension, diabetes or even critical ailments are declared to the insurer so that there is full disclosure and then the insurer will confirm if they can accept the proposal," Chhabra added. 

What is pre-existing disease?

Any disease that you were diagnosed with by a physician within two years of purchasing a health insurance policy is considered 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," insurance company HDFC ERGO said in a blog post. 

Does health insurance cover pre-existing diseases?

All your pre-existing diseases are covered under health insurance, but only after a waiting period. The waiting period can be from one to four years - depending on the disease. 

Can you get pre-existing disease covered immediately?

There are some insurance companies that give options or riders to people who want to cover all their pre-existing diseases without any waiting period. But for this, you will have to pay an extra premium.