Life insurance

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Unfortunately, we don’t recommend any financial products or services but hopefully you may find the following information helpful.

Before shopping around for life insurance it’s worth being aware that it’s not normally compulsory to take out life insurance to obtain a mortgage, and there’s no requirement to discuss it with the mortgage adviser. For those who decide to take out a mortgage without having any life cover in place, it’s important to consider how family members would cope financially if something happens.

A cancer diagnosis will likely make getting life cover much harder. The application will normally require a more rigorous underwriting process, requiring medical reports and sometimes an examination. But this depends on the type of cancer, the stage it reached and the length of time since diagnosis.

Insurance companies look at risk when assessing an application and will consider the likelihood of you making a claim during the term of the policy. If the insurance company believes that this risk is higher than average, they might accept the application but increase the premiums. They may also only agree to look at the application at a later date, or refuse to offer cover at all.

Sometimes an insurer might agree to offer life assurance, but with an exclusion for a pre-existing medical condition (like cancer). Before agreeing to an exclusion, think about the implications of not having cover for that particular illness.

As a rule of thumb, the longer someone is in remission for the more likely it is they will be offered cover. This can also have an impact on cost, so it’s worth bearing this in mind if you take cover out it maybe worth reviewing periodically to see if it’s possible to obtain similar cover at a reduced cost.

It’s also worth thinking about life cover that may already be in place, or is accessible through an employer. Some employers offer life insurance as part of an employee benefits package, either as a stand-alone policy or as part of a pension scheme. This cover is generally available without medical checks and is usually a multiple of an employee’s salary.

If cover is refused, it may be worth speaking to an Independent Financial Adviser who will be able to search the whole of the insurance market. Maybe check with family and friends to see if they can recommend an adviser.

Alternatively, visit this page to find details of advisers in your area.

When choosing a financial adviser, always check that they, and the company they work for, are authorised by the Financial Conduct Authority (FCA) to provide financial advice.

This information can be found on the FCA register here.

Please be aware that, if an unregulated firm (or individual) is used, there may be no protection from the Financial Ombudsman Service or Financial Services Compensation Scheme if things go wrong.

If you’d like to talk through this some more, feel free to phone us on 0808 808 0000 – Mon-Fri 8am-6pm.

James

Financial Guide

The Financial Guidance Service will not advise you on the merits of buying, selling, cancelling or making a claim on a specific financial product from any company or otherwise provide you with any regulated services. As a guidance service, we do not provide financial advice or carry on other activities that are regulated and we are not authorised or regulated by the Financial Conduct Authority. No part of our service constitutes, nor is intended to constitute, a financial promotion within the meaning of the Financial Services and Markets Act 2000 nor an invitation or inducement to engage in investment activity.

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