Diluted Insurance
September 01, 2011
Chris Morgan, Marketing Manager
Have you ever been treated unfairly by an insurance company?
We all know that insurance companies sometimes attract a poor reputation for their service standards and their record for paying claims. As Independent Brokers it’s our job to help people to find not just the cheapest premiums, but also the fairest terms and conditions. This is particularly true if people have pre-existing medical conditions to disclose in their application.
Craig approached us recently looking to protect his income in the event of illness or accident. He had been having some problems finding insurance, because he is diabetic, which some insurance companies refuse to insure. Even though he had managed to find an offer of insurance elsewhere he felt the terms that were being offered were unfair.
Craig Said …
‘I’ve been looking for cover for a number of weeks, but for some reason the insurance companies seem to be offering me a diluted version of their policy. I realise that because I’m diabetic I’m likely to be asked for a higher premium, but I don’t expect to be offered sub-standard insurance cover’.
Craig Continued …
‘I really feel it’s important to protect my income in the event of serious illness, because I’m a doctor and I see the financial effects of illness through my patients. It would be great if you could find me cover that would actually include cover for my diabetes at a reasonable premium’.
Here’s some advice for people looking to insure pre-existing medical conditions.
If you have pre-existing medical conditions and are applying for Income Protection, then you should make certain that the insurance company does not exclude your condition completely. It’s much better to find an insurer policy that cover’s the condition in return for an extra premium.
Income Protection providers offer cover on either ‘own occupation’ or ‘any occupation’ basis. The any occupation cover is a diluted form of the insurance, which makes it more difficult to claim. If you are taking Income Protection insurance it is far better to buy it on an own occupation basis.
Contrary to belief it is possible to get Income Protection, Critical Illness Cover, or Life Assurance if you have pre-existing medical conditions. However, it is extremely important to check that the cover you are buying is both comprehensive and at a fair price.
And Craig …
We recommended an Income Protection policy for £10,000 per annum benefit on an Own Occupation basis, without any exclusions for Craig’s Diabetes. He was charged the basic premium for the cover of £39.22 per month, plus an additional extra premium loading of £19.11 per month.
Always try to find an insurer that includes, rather than excludes!
Chris Morgan is a freelance journalist and qualified Independent Financial Adviser. He is the Marketing Manager of Compass, The Gay Mortgage and Insurance Advisers and can be contacted by phone 0845 474 3075 By Email enquiries@compassindependent.co.uk or by web www.compassindependent.co.uk.
