Life insurance with a pre-existing condition

Can you get life insurance if you have a pre-existing condition?

The short answer is yes. You can be approved for life insurance even with a medical diagnosis or illness. A health condition does not automatically mean you’ll be declined. It may, however, affect the type of coverage you qualify for, the questions you’re asked, and whether a medical exam is needed.

Your options may depend on your diagnosis, treatment history, age, and how stable your condition is. Here’s a breakdown of how it works:

What counts as a pre-existing condition in a life insurance application?

A pre-existing condition is a health issue you had before you applied for life insurance. That can include ongoing conditions, past diagnoses, or treatment you’re going to receive or are still managing.

Insurers look at more than the condition name. They may also consider how stable it is, what treatment you use, if you follow your treatment plan, and whether there have been recent changes in your health.

What kinds of pre-existing conditions matter in a life insurance application?

Many different health conditions can affect an application. The specific impact varies by insurer and by how the condition is managed. A few key points to keep in mind: 

• Chronic conditions may lead to more questions during underwriting, which refers to the process where an insurer assesses your health, finances, and risk factors to decide whether to approve your application and at what price. 
• A past diagnosis does not always mean you’ll be declined.
• Recent tests, treatments, or hospital visits may matter.

Does the timing of your diagnosis affect your life insurance application?

Yes, timing can matter. A condition diagnosed years ago and well managed today may be viewed differently from one that was diagnosed recently or is still changing.

Sun Life may ask about when the condition started, how it has been treated, and whether there have been complications. This helps create a more complete picture of your application.

Is a pre-existing condition the same as a serious illness?

No, the terms are not the same. A pre-existing condition can be mild, moderate, or serious, and the underwriting impact depends on the details.

Why do insurers ask health questions?

Insurers like Sun Life ask health questions for a few key reasons:

To assess risk: We need to understand how likely you are to file a claim. Your health history helps us predict this, so we can make informed decisions about whether to approve you.

To set fair prices: The more health risks you have, the higher your premiums will be. Detailed health information allows insurers like Sun Life to price your policy appropriately based on your actual risk level.

To prevent fraud: By gathering comprehensive health details upfront, Sun Life can verify the information is accurate and catch any attempts to hide important medical history that could lead to claims later.

To protect applicants and clients: Thorough underwriting helps keep premiums fair for all our clients. If people with serious conditions paid the same low rate as healthier people, healthy customers would end up subsidizing claims they shouldn't have to cover.

In short, health questions exist so we can make accurate decisions, price policies fairly, and ensure the system works properly for everyone involved.

What life insurance options are available with pre-existing conditions?

Different types of life insurance may be available if you have a health condition. The best fit depends on how much coverage you want, how quickly you need it, and how much health information you are comfortable sharing.

Some people may qualify for permanent life insurance. Others may prefer term life insurance for a simpler application process and temporary protection needs. Here’s a quick overview of how term and permanent life insurance work:

Learn more about life insurance rates in Canada

What type of life insurance is right for you?

The best choice depends on your situation:

• Consider term insurance if you need affordable coverage now, want protection during your peak earning years, and have limited budget flexibility due to your health condition.
• Consider permanent insurance if you want lifetime coverage, have long-term wealth or dependent care needs, and can afford the higher premiums.
• Consider both if possible. Some people use term insurance for primary income replacement and a smaller permanent policy for final expenses or legacy goals. Learn more about owning multiple life insurance policies

A practical tip: You can start with term life insurance if your condition makes permanent insurance too costly. It still provides important protection. As your health stabilizes or your financial situation improves, you can explore permanent coverage later.

Connect with an advisor who understands your specific condition to determine the right balance of coverage for your needs and budget

* Keep in mind, if you have a pre-existing condition and apply online, you may be expected to answer additional questions and provide more medical information.  

** Coverage is subject to application approval.