Why does disclosing pre-existing diseases matter when buying Term Insurance in 2026?

In 2026, buying Life Insurance is increasingly about making informed protection decisions and providing accurate information during the application process. Aditya Birla Sun Life Insurance (ABSLI) offers Term Insurance and other Life Insurance Plans in India customers can consider based on their financial protection needs. The sector operates under the regulatory framework of the Insurance Regulatory and Development Authority of India (IRDAI), with policyholder protection and transparency remaining important considerations.

The post-budget tax environment and evolving insurance regulations also make it useful to review your insurance decisions carefully. However, irrespective of tax treatment or the premium payable, one principle remains important: provide complete and accurate information about your health when applying for life insurance.

Disclosing pre-existing diseases helps the insurer assess your application based on the information you provide and determine the applicable terms, premium and underwriting requirements.

What is a pre-existing disease in Life Insurance?

A pre-existing disease generally refers to a medical condition that existed before you applied for the insurance policy, subject to the definition and conditions specified in the policy documents. This could include conditions for which you have received medical treatment, undergone investigations, taken prescribed medication, or been diagnosed by a medical professional.

Examples may include diabetes, hypertension, asthma, heart conditions, or other diagnosed illnesses. The exact treatment of a condition depends on the insurer's underwriting guidelines and the product terms. Therefore, you should not decide on your own that a condition is too minor to disclose. If the proposal form asks about a particular medical condition, treatment, medication, hospitalisation or medical history, answer it accurately.

What medical information should you disclose when applying for Term Insurance?

You should provide complete and truthful information requested in the proposal form. This can include:

• Existing or previous medical conditions
• Hospitalisation or surgery
• Regular medication
• Significant medical investigations
• Lifestyle information requested by the insurer
• Smoking or tobacco consumption
• Alcohol consumption where specifically asked
• Family medical history, where required
  
  

The insurer may ask for additional medical tests or documents depending on the information provided, the applicant's age, coverage amount and underwriting requirements.

Can non-disclosure of a pre-existing disease affect a Life Insurance claim?

Yes. Non-disclosure or misrepresentation of material information can affect the assessment of a claim, depending on the circumstances and the applicable policy terms and law. For example, if an applicant is aware of a medical condition and deliberately fails to disclose it when specifically asked in the proposal form, the omission could become relevant during claim assessment.

This is why providing accurate information at the proposal stage is important. A lower premium obtained by withholding relevant information may not be worth the potential uncertainty created later. The safest approach is straightforward: when in doubt about whether information is relevant, disclose it or seek clarification from the insurer or authorised intermediary.

Does having a pre-existing disease mean you cannot buy Term Insurance?

No. Having a pre-existing disease does not automatically mean that you cannot obtain Term Insurance. The insurer may assess your application based on factors such as the nature and severity of the condition, treatment history, age, lifestyle, coverage amount and other underwriting information.

Depending on the assessment, the insurer may accept the application at standard terms, offer it with an additional premium or other conditions, request further medical information, or decline the application. The outcome is specific to the individual application and should not be assumed in advance.

Why should you disclose your medical history even if you feel healthy today?

Some health conditions may exist without producing noticeable symptoms. You may also have undergone medical tests or taken medication for a condition that you no longer consider significant. If the proposal form asks for such information, it should be disclosed accurately.

Term Insurance is a long-term financial protection product. Providing complete information at the beginning can help create a clearer record of the basis on which the policy was issued. This is also part of understanding the importance of Insurance. Protection works best when the policyholder understands the policy requirements and provides accurate information.

How does claim settlement ratio relate to disclosure of health information?

The claim settlement ratio is one metric customers may consider when evaluating a life insurer, but it should not be viewed independently of policy terms, disclosures and underwriting. ABSLI's Annual Report 2025-26 states that its claim settlement ratio improved to 98.86%. For the latest FY 2025-26 period, ABSLI's claims data states that, based on annual audited figures submitted to IRDAI, 98.86% of individual claims were settled, with ₹630+ crore in total claims settled.

These figures can provide useful context when comparing Insurance Plans, but a claim settlement ratio does not mean every claim will automatically be paid. Claim outcomes depend on the policy terms, applicable conditions and information provided by the policyholder.

What does IRDAI's framework mean for Life Insurance applicants?

IRDAI regulates India's insurance sector and establishes the regulatory framework applicable to life insurance products and policyholders. For applicants, this reinforces the importance of reading proposal forms and policy documents carefully and providing accurate information. The insurer's underwriting assessment is based on the information available at the time of application, along with any medical or documentary evidence requested.

The practical takeaway is simple, do not leave important health information undisclosed merely to obtain a lower premium or simplify the application process.

How should you choose among Life Insurance Plans India in 2026?

The right Life Insurance Plan depends on your financial objective. If your primary objective is income protection for your family, a Term Insurance Plan may be relevant. Other Life Insurance products can combine protection with savings or investment-oriented features. When comparing plans, consider:

• Sum assured
• Policy term
• Premium affordability
• Premium-payment period
• Death-benefit options
• Exclusions
• Riders
• Underwriting requirements
• Claim process
• Insurer's claim settlement track record
  
  

You can compare ABSLI Term Insurance Plans based on your protection requirements.

How can you estimate the Term Insurance cover you need?

Your required life cover should reflect your income, outstanding liabilities, future financial goals, existing assets, and the financial needs of your dependents. An online calculator can provide an indicative estimate before you apply.

Use the ABSLI Term Insurance calculator to consider factors such as your annual income, existing life cover, loan liabilities and savings. Once you have evaluated your requirements, you can explore the ABSLI Super Term Plan and Buy Now journey, subject to eligibility, underwriting and applicable policy terms.