What if we required every health insurance policy to be bundled with life insurance?

In the currently raging controversy on health care, we hear all the time of people who had insurance, but got dropped when they got too sick. Or they might have been accepted in good faith, but then rejected in the pinch because they “should have known” that they suffered from some as yet undiagnosed preexisting condition.

Many also argue that our system is overly focused on “sick care” rather than prevention and wellness. Useful preventive procedures are often not covered by insurance or are otherwise unavailable to people of limited means.

It occurs to me that if the same entity insured your life as well as your health, we’d see then how eager they are to cut off the health care. I think we’d see a slight change in attitude there. “Health” is, after all, a core aspect of “life”, and, in fact, it was traditional in the insurance industry that health and life insurers were the same companies. This was so much true that many of the same laws applied to both types of insurance, life and health being the one of the two main divisions into which insurance was divided, the other being property and casualty. (I suppose surety and bonding constituted a third category, but it’s been a long time since I was a professional reader of insurance law).

Has anything like this ever been considered? Are life and health insurance mutually antagonistic by principle? I can see how there might be some problems around the edges; a person of mediocre or poor health, would be rated way up on the life portion of a dual policy, but they might well consider ample health coverage a fair trade-off. But in general, would such an idea be feasible? (Paging Cunctator)

Well, unless you’re proposing some method of forcing insurers to cover sick people, you’re gonna exacerbate the ‘pre-existing condition’ thing. Now, not only will insurers lose money on all those cancer treatments, they have to shell out when you die? I doubt you’ll get many offers of insurance under those conditions.

As runcible spoon notes, insurers would almost certainly want to use the information obtained during underwriting to limit and/or exclude the extent of health insurance.

It’s not an issue here. In Australia life insurers and health insurers are completely separate entities. Neither can offer the other’s products. Also, we have a universal health system. Many people do buy additional, private health insurance - partly because it allows you to avoid any queues in the public system, and partly because there are tax incentives to do so. But the private health insurance is community rated. Everyone pays the same rate regardless of age, sex, medical conditions etc. Health insurers can impose some temporary exclusion periods for pre-existing ailments, but that’s about it. And once issued, health insurance coverage cannot be withdrawn by an insurer while the premiums continue to be paid.