Life Insurance query

Hi

Thanks for getting in touch, I’m sorry to hear about the difficulties you are having getting life cover.

Unfortunately, we are unable to recommend a specific company to provide life cover as each case is very individual and will depend on a number of factors. Also, as we are a guidance service, we are unable to give advice as this is an activity we are not regulated to provide.

However, I hope the following information might be helpful for you:

Having a cancer diagnosis is likely to make applying for life assurance harder. The application will normally require a more rigorous underwriting process, sometimes including medical reports and an examination.

Insurance companies look at ‘risk’ when assessing an application and will consider the likelihood of having to pay out during the term of the policy. This normally depends on a number of factors such as the stage and type of cancer, how long ago the illness was diagnosed and the treatment received.

When buying insurance or making a claim, it’s really important to answer the insurer’s questions fully and truthfully. The person buying the insurance must give the most accurate information they can. If they don’t, the insurer may refuse to offer cover, or refuse to pay out if the person later makes a claim on the policy.

If the insurance company believes that the risk is higher than average, they might accept the application with increased premiums. If the company sees the risk as being too high, they might decline to offer immediate cover but agree to review the application at a later date or may even decline 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). If this happens, it’s important to think about the implications of not having cover for that particular illness.

If cover is refused, you could consider speaking to a Financial Adviser who will be able to search the whole of the insurance market on your behalf. Please speak to family and friends to see if they can recommend an Independent Financial Adviser, or alternatively visit: http://www.thepfs.org/yourmoney/find-an-adviser/ where you can search for details of advisers in your area.

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

You can check individuals and companies on the FCA register:

www.fsa.gov.uk/register/home.do

If you struggle to get cover, another thing you could consider is Guaranteed Underwriting Life Assurance Policies. These policies offer a limited amount of cover and are generally only offered to people over the age of 50. Often, no medical information is needed, and acceptance is guaranteed, which means these plans offer cover to people unable to get life insurance elsewhere. It’s important to know that these policies usually do not pay out for death claims in the first 12 or 24 months after the start of the policy. This is known as the ‘deferred period’. If death occurs within this time, normally any monthly premiums that have been paid are returned rather than the insured amount being paid out.

It sounds like you have some cover in place through your pension scheme. If you have not already done so, It’s important to fill in an Expression of Wish Form to tell the trustees where any lump sums should be paid in the event of death.

I hope this provides you with a bit of helpful information. If you have any further questions or would like to discuss things such as mortgages or pensions, then please don’t hesitate to get back in touch.

Yours Sincerely,

Calum

Financial Guide