Frequently Asked Insurance Questions?

Question: I have Haemochromatosis - how does this affect my ability to apply for Life Insurance? Will I have to pay an extra premium?

Answer: For basic life insurance an insurer will generally accept policies at standard premium rates where the diagnosis is confirmed, serum iron and ferritin levels are satisfactory and there has been no liver or other major organ damage. The insurer will consider additional premium loadings or altered policy terms if there is evidence of elevated serum iron and ferritin levels or poor control. Where there is evidence of liver or other organ damage then policy terms could be severely restricted.

Question: What about other forms of insurance, like Income Protection or Health Cover?

Answer: An insurer will use the same criteria outlined above to reach their decision but policy terms or premiums could be somewhat different. For instance, major medical coverage claims for Haemochromatosis may well be excluded as an identified pre-existing condition. Income Protection may attract a small premium loading where minor symptoms are evident, or in cases where organ damage has occurered then terms could be difficult to obtain.

Question: How does an insurer go about assessing my suitability for cover?

Answer: When applying for cover you will be required to disclose to the underwriter all medical conditions that are material to the insurer’s decision to accept the risk. The application form will ask specific questions concerning your health history. When you indicate Haemochromatosis as an existing health condition, the underwriter will likely request copies of your blood results, treatment information and details of any complications from your GP. Based on that information the insurer will then be able to accurately assess the risk.

If you have any further insurance queries please contact John Richards at jrichards@ihug.co.nz or on (09) 415-6771.