Yes, you may still be able to get life insurance in New Zealand if you have a pre-existing medical condition.
The important question is not simply, “Do you have a medical condition?” It is how an insurer assesses that condition, your current health, treatment history and the likelihood of it affecting your future risk.
NOTE: Two people with the same diagnosis can receive very different underwriting outcomes.
How Do Insurers Assess Pre-Existing Conditions?
Depending on your medical history, an insurer may consider:
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When you were diagnosed with that particular condition.
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How severe the condition has been.
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Whether it is stable, improving or getting worse.
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Medication or treatment you currently require.
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Hospital admissions, investigations or specialist reviews.
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How recently you experienced symptoms.
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Whether there have been any complications.
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Other health factors such as blood pressure, weight, smoking or related medical conditions.
The insurer can also request additional information from your GP, specialist or another medical professional before making a decision.
Conditions such as diabetes, high blood pressure, previous cancer, heart conditions or other ongoing health issues do not automatically prevent someone from obtaining life insurance NZ.
What Can Happen After Underwriting?
A pre-existing condition can lead to several possible outcomes.
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You may receive cover on standard terms if the insurer considers the additional risk to be low.
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You may be offered cover with a premium loading, meaning you pay a higher premium because of the additional risk.
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Depending on the condition and type of cover being applied for, the insurer may offer modified terms or place limitations on certain benefits.
If the insurer considers the risk too high at that point in time, the application may be postponed or declined.
Different Insurers Can Assess the Same Condition Differently
Underwriting criteria are not identical across life insurance NZ insurers.
One insurer may be comfortable with a particular medical history, while another may require further evidence, offer different terms or decline the application. This makes insurer selection particularly important when you have a pre-existing medical condition.
Submitting applications without first understanding an insurer’s underwriting approach can result in unnecessary declines or unfavourable terms that you may need to disclose on future applications.
This is where speaking with an experienced financial advisor before applying can be valuable. An advisor can help assess which insurers may be more appropriate for your circumstances before a formal application is submitted.
Do Not Leave Medical Information Out
One of the most serious mistakes an applicant can make is minimising or leaving out medical information because they are concerned it may affect approval.
The Financial Markets Authority advises consumers to be honest when applying for insurance and to provide the medical and lifestyle information requested by the insurer.
Failing to properly disclose relevant information can affect the terms of your cover and may create problems when a claim is made.
If you cannot remember the exact dates of treatment, medication or investigations, say so rather than guessing. Your adviser or insurer can help determine what additional information may be required.
Already Have Life Insurance in NZ? Be Careful Before Switching
If you already hold a life insurance policy and have developed a medical condition since taking it out, replacing that policy requires particular care.
A new insurer will assess your current health and medical history. This means a condition that is already covered under your existing policy could receive different terms under a replacement policy.
Do not cancel existing cover simply because you have applied for a new policy.
Wait until the new application has been fully underwritten, the terms are understood and the replacement cover is in force before making any decision about cancelling existing cover.
How LifeCycle Financial Can Help
If you have a pre-existing condition, the goal should not be to simply submit an application and hope for approval.
Our experienced financial advisors at LifeCycle Financial can review your circumstances, understand the relevant medical history and assess available options across leading New Zealand insurers.
We can also help you understand the terms behind a life insurance quote, including how your medical history may affect the premium or cover being offered.
Where appropriate, this can help identify insurers whose underwriting approach may be better suited to your circumstances before a formal application is submitted.
The right starting point is finding out how your condition is likely to be assessed, and what life cover may realistically be available to you.
