Pre-existing Condition Health Insurance

Health insurance policies are financial arrangements primarily devised with the thought that should the policy holder suffer some kind of health problem or imminent hospitalization sometime during the tenure of the health insurance cover, the insurance company ought to take care of all the costs that may be incurred. In return, while the policy holder is in the pink of health, he will pay sums of money towards premiums for keeping the insurance policy going. But of course, if you have some sort of health condition the chances of the insurance company having to finance your medication and other associated expenses are pretty high. So the insurance companies become more careful and hand out this sort of insurance policy.

Explaining a Pre-existing Medical Condition

The term 'pre-existing condition' is used when a person applying for health insurance has some sort of serious health issue. How serious a health issue are we talking about here? Well, the definition is a bit loose, but chronic health problems such as heart disease, cancer, high blood pressure, and diabetes are commonly brought under this category.

Now this health condition health insurance is a tricky bit of business both for you and for your insurance provider. The chances that your insurance provider will not detect a health condition are decidedly rare as they conduct pretty detailed tests to monitor your condition. If they find a problem which comes under their definition of a health condition, they will be a little wary of providing a health insurance policy. The way insurance companies see it, you're a pretty loss making proposition as they will have to pay your sizable medical bills. Hence they can basically offer you two options.

Higher Premium
The insurer wants to break even and make a profit, so there is really no way that he is going to incur a loss on you. So your insurance premium on the insurance will be a bit higher. The way they see it, they don't want to make a loss in case of hospitalization costs and high medical bills, so a higher premium might help them cover those costs, should they arise in the future. So when you go in to get a pre-existing condition health insurance, you will in all probability be asked to pay a higher premium. So your chances of getting a low cost health insurance plan are quite low indeed.

Pre-existing Condition Exclusion
The other option that a person with a pre-existing medical condition seeking insurance has, is to opt for the exclusion. This little clause in the insurance agreement says that should the policy holder suffer from any kind of health problem, other than one which is directly related to his or her condition, then the insurance company will take care of all those costs. The costs related to the medical state will of course have to be borne by the policy holder himself. Now the thing here is that the exclusion is only for a period of time. So should you opt for a long term policy, you will be insured for the pre-existing condition once it is over. But it is more likely that the insurer will give you short term health insurance policies instead.

As you can see, the health insurance coverage can be a bit tricky and may work against you. Hence it is always better to get a health insurance early in life and for a longer term.