Life insurance companies consider various factors before providing coverage to a particular individual. In most cases, the premium charged for a life insurance plan is based on an individual’s age, income, gender, smoking habits, lifestyle, medical history, etc. Among these factors, medical history is one of the crucial determinants of life insurance. Over a certain age, mandatory medical examination is required by most companies at the time of application. Even if medical checkup is not requested, insurance companies expect applicants to declare their existing conditions while signing up for a policy. Failure to declare one’s existing conditions may constitute fraud, and it will create issues during claim settlement.
Among the people with pre-existing conditions, transplant recipients often have a tough time getting a life insurance cover because of the uncertainties looming over their medical condition. In addition to this, insurance companies also consider the age, height, weight, smoking habits, drinking habits, etc., before deciding whether or not to cover an individual. The conditions regarding coverage for people who have undergone organ transplant may vary from one insurer to another. Let’s take a look at the options available for transplant recipients when it comes to obtaining life insurance coverage.
If an individual is already an existing life insurance policyholder, getting an organ transplant during the course of the policy term is not likely to affect the validity of their life cover. However, life insurance coverage cannot provide any direct benefits to policyholders during the case of a transplant. If a policy tenure ends after a transplant surgery, the transplant recipients are likely to face difficulty in getting a new life insurance cover.
As noted, the conditions regarding the availability of life insurance may vary from one insurer to another. There are different types of organ transplant procedures including kidney, heart, liver, pancreas, intestine, etc. The type of transplantation performed is one of the major factors considered when it comes to providing life insurance. The severity of conditions differs a lot depending upon the different forms of transplant. In most cases of organ transplant, the physical risks associated with the post-transplant life may not show up for a while.
The condition that leads to the organ failure is another major thing considered by life insurers before providing coverage. For instance, if a kidney ailment is caused by an individual’s excessive drinking habits, it is next to impossible to get a life insurance cover. Most insurers do not wish to take that kind of a risk while providing coverage for their customers. In some cases, a specific disease is likely to result in organ failure. For instance, Hepatitis C is one of the major reasons for liver failure. In most cases, Hepatitis C is incurable and can only be managed with certain medications. Insurers are wary of situations similar to this. Even if an individual successfully receives a new liver after being infected with Hepatitis C, most insurers will not be ready to provide coverage for these individuals.
Group insurance policies offered by employers most often cover pre-existing conditions in a person. Hence, this is likely to cover individuals who have already undergone organ transplantation. However, the downside here is that the benefit provided from the policy may not be sufficient for the family’s entire future. Also, individuals cannot customize group insurance according to their own preference. Another option available for these individuals is to enroll themselves in government-based welfare schemes. Even here, the benefit offered is limited and may not be sufficient for a family to manage all of its future financial requirements.
Organ transplant is a big deal in the world of life insurance. There are no specific policies available in the market for individuals who have undergone these treatments. Moreover, various factors are considered before an insurer may even think about providing coverage for transplant recipients. This is the main reason why most financial experts ask people to enter a term cover early when they are young and healthy.