• International Insurance Blog

  • Sunday, March 18, 2018

  • Pre-existing conditions - What they are, and why they aren’t covered

    Filed Under: Blogging
    Author: Blog Contributor

Most health insurance policies have a clause that states clearly and up-front that pre-existing conditions are not covered. Now, what exactly is meant by pre-existing conditions? And, why aren’t they covered?

A pre-existing condition is any health issue that has shown symptoms, been diagnosed, received care or has been treated prior to the start of the effective date of insurance coverage.

To understand the reason as to why such a condition is not covered, one has to understand the way in which the whole concept of insurance works. Insurance is the name given to something that covers a certain kind of risk. Premiums are paid before the event occurs to reduce the financial burden should the covered event occur. The amount of premium paid is calculated by considering the chances of such an event occurring. More the chances of an event occurring, higher is the premium.

With that in mind, one has to look at a pre-existing condition. The event has already occurred. In other words, the chances of it happening are 100%. Such an event cannot be covered for this reason. It is like trying to insure a vehicle after it has met with an accident. That accident cannot be covered in a policy that is bought after the accident. Any further claims (but unconnected to this accident) will be covered.

Essentially, what it means is, buy health insurance when you are healthy so that you can use it should you become ill.

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