Does the medication you take influence your life insurance premiums?

Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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, updated on November 25th, 2021       

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The first sign of a sickness will make you head towards your medicinal cabinet to find a pill, or a liquid mixture that will make you feel better. 9 in 10 Australians take some form of medication to help heal both mild to serious illnesses. Some of the medication that we take is also to prevent genetic illnesses from affecting the quality of life we have. But does the medication you take affect your life insurance

Life insurance and your medical history

In order to supply you with adequate cover insurers will request your medical history which will be assessed by underwriters. This provides an underwriter with information that helps them determine how much cover will be suitable to cover you and your loved ones should you be struck by an illness or death. It is vital that you provide accurate information about your health and pre-existing conditions. Lying about your information will only see you getting the shorter end of the stick that can make your policy void.

17.8 million Australians take some form of medication from age 14+

New research by Roy Morgan shows that 88.7% of Australians take medication of some kind. 92.6% of women are more prone to take medication of some kind compared to 84.8% men. However, a majority of the medication that Australians consume is to take care of general illnesses. The research found that 77.3% of medication taken was general medications. The second biggest form of medication were medications to heal allergies, Antihistamine, cold & flu’s by 42.9%, and the third largest medication group was in the form of Vitamins and supplements.

The medication you take will play a part in the type of life insurance cover you get. Your gender also plays a vital role when it comes to being assessed by how much premiums you will pay. The type of medication that was taken increases as people aged, but more serious forms of medication varied by gender. 19.6% of men are more likely to take heart & circulation medication compared to 18.6% of women.

Being transparent will work in your favour

When applying for a life insurance policy your insurer could ask you questions pertaining your medical history and your health. You could be further asked about your family’s medical history, and you might be requested to undergo a test. Any type of medication that you take that affects your health in any way should be mentioned. This will ensure that you receive adequate cover without compromising you or your loved ones.

The more severe your illness or condition is the more likely it is that you will be given stronger medication to combat the illness. Your insurer needs to be informed in order to adapt your policy accordingly. It is most likely that you will pay more in premiums, but by comparing policies will help you find a better deal.

There are some insurers that specifically design life cover policies to cover people that suffer from serious illnesses that might not be covered by other insurers. By speaking to an accredited life insurer, you will be able to find a policy that fits the bill to keep you and your loved ones protected.

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