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Income protection insurance

Mongolia

Well-Known Member
Messages
845
Type of diabetes
Type 2
Treatment type
Diet only
I am in the process of remortgaging and as part of this my financial advisor talked through with me about having income insurance. This made sense as I am a single person without significant savings. I told her that I am T2 but not on any medication, have never been hospitalised as a result and have BS levels within 'normal' range. She came back and told me that no company she could find would offer me income protection because of being T2 diabetic. Does anyone know of an insurance company I could try that are 'diabetic friendly'?
 
I am in the process of remortgaging and as part of this my financial advisor talked through with me about having income insurance. This made sense as I am a single person without significant savings. I told her that I am T2 but not on any medication, have never been hospitalised as a result and have BS levels within 'normal' range. She came back and told me that no company she could find would offer me income protection because of being T2 diabetic. Does anyone know of an insurance company I could try that are 'diabetic friendly'?

Income protection is one of the highest risks to an insurer. You don't have to die or even die a bit before they have huge payouts on their hands. Depending on your occupational class, and the cover they offer you, you could "merely" be unable to carry out your current occupation.

The long term nature of the insurance (usually from start to retirement) means their risk calculations will be swayed more by current beliefs about diabetes (potentially the supposedly progressive nature etc.). In paying your premium, you are gambling you will claim, whereas they are looking for people least likely to claim. They are after all looking for a profit from their policy holders.

Did you consult with an independent financial advisor or someone from one of the banks, say? It is critical you have someone who really can scan the market.

I wouldn't build your hope up, but it could be worthwhile you writing up your own document for your advisor to present to the companies. If he is expressing your case as "I have a person, diagnosed T2 on x date, how do we go for PHI?", there's likely to only be a narrow field of response I'm afraid.

If your diagnosis is relatively recent (a year, I think from your profile?), you may have more success when you have a longer track record of excellent control. The reality is your insurers will pay more attention to the facts (your diagnosis) than your promise to be good for the next 25 or 30 years.

If you want to discuss this in more detail, feel free to PM me. I am not a financial advisor, but have worked in large companies providing this sort of cover, including alongside specialist underwriters, actuaries, and pricing actuaries and so on, so I do have a decent view on how some of these things are looked upon.

Sorry it's not a happy, fluffy response, but I can't, from my experience, offer that to you. :(
 
This link was from the Guardian in 2013. Back then, London Victoria (LV) were offering a policy with no medical questioning.

http://www.theguardian.com/money/2013/aug/31/income-protection-off-work-sick

Maybe worth checkiing but bear in mind that the info is old now.

That'ss a very different policy to income protection, and a type that got terrible press a few years ago, because there were (then) some huge hurdles to a successful claim. Plus the benefit is only for a maximum of 12 months. Income Protection potentially pays for much longer; usually until retirement.

That class of policy is called ASU (Accident, Sickness and Unemployment), although they usually offer menu picking of the elements required.

I had PHI, but wouldn't (personally) have considered ASU a credible alternative, but we each have differing thresholds for risk.
 
Thanks both for your help. I went through an independent advisor @AndBreathe who was the one to suggest I have income protection when I was rearranging my mortgage. Maybe I should research critical illness cover instead and see what that throws up!
 
That'ss a very different policy to income protection, and a type that got terrible press a few years ago, because there were (then) some huge hurdles to a successful claim. Plus the benefit is only for a maximum of 12 months. Income Protection potentially pays for much longer; usually until retirement.

That class of policy is called ASU (Accident, Sickness and Unemployment), although they usually offer menu picking of the elements required.

I had PHI, but wouldn't (personally) have considered ASU a credible alternative, but we each have differing thresholds for risk.
Sorry for my ignorance but what is PHI?
 
Thanks both for your help. I went through an independent advisor @AndBreathe who was the one to suggest I have income protection when I was rearranging my mortgage. Maybe I should research critical illness cover instead and see what that throws up!

It could be marginally more available, but I do think your recent diagnosis could still be an issue.

PHI is the generic, industry jargon (sorry!) for Income Protection.
 
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