What does 'pre-existing condition' mean in terms of insurance policies?

A pre-existing condition in terms of insurance policies refers to a medical condition or illness that existed prior to the effective date of the insurance policy. This means that if a person had a specific health issue before they obtained their insurance coverage, this condition is classified as pre-existing.

Insurance companies often have clauses that address pre-existing conditions because they can affect the risk profile of the insured individual. As a result, insurers may impose waiting periods before coverage for these conditions begins, exclude them entirely, or charge higher premiums based on the perceived risk. Understanding the definition of a pre-existing condition is crucial for individuals seeking insurance, as it directly impacts their coverage and the claims process.