This means that there can be a range of different outcomes from an underwriting point of view. We hear a lot of people saying, 'I have diabetes so I will not be able to get cover', but this is not strictly true.
The main point of differentiation is how well the client’s condition is controlled and whether they are experiencing any complications. If well controlled and without multiple complications there is certainly the opportunity to obtain life cover in the market.
Application and medical underwriting
Depending on the client’s age and the level of cover they are applying for, the insurers may require GP reports and an up-to-date medical as part of their standard requirements.
How much does the medical cost?
Morris: The level of the medical screening varies depending on the client’s age at the time of application and the level of cover they are applying for.
For larger sums assured, further blood tests and possibly an exercise echocardiogram (ECG) maybe required as part of the insurer’s standard medical requirements. Regardless of the cost, all fees incurred will be covered by the insurer.
What happens if the client’s health changes between the application and being placed on risk?
Lee: Your client is obliged to tell the insurer of any changes to their health up until the point when the policy is on risk. This may mean that the premium rises as a result, but neglecting to inform the insurer can lead to a policy being invalidated in the event of a claim.
A client’s hobbies can also affect their risk and the premiums they pay on life insurance.
If your client enjoys taking part in hobbies or leisure activities that are considered risky, their premiums could be higher.
Will premiums be higher if the client enjoys an annual ski trip with their family?
Lee: Most companies will not charge extra for this, but skiing off-piste without a guide or heli-skiing can result in higher premiums.
If your client takes part in high-risk hobbies, they will likely have an increased risk of accidents. They are also more likely to participate in other high-risk pastimes in the future.
Morris: Again, insurer’s underwriting philosophies differ significantly in regards to off-piste skiing or heli-skiing. If this is a hobby your client partakes in, it is important to shop around for the best value policy for the client.
For some clients, understanding more about how their policy works can help with their decision
How is medical data handled now and in the future if the client does not take out the policy?
Lee: Medical data is only viewed by parties who need to see it to be able to offer cover. Insurers all have their own secure data systems and take data protection extremely seriously.
