Life Insurance Notification Requirements T2

[Element137]

I have a question related to this - does anyone know the legal position on whether you should declare T2 after diagnosis if you already have an existing policy running ?- I have life assurance taken out ages ago against a mortgage - diagnosed August 2016 - questioning now whether I need to inform the insurer ?- surely the premium applied is at point of purchase against a known level of risk at that point in time ? - do insurers reserve the right to change premium on information after contract is entered into ? - Whilst I was diagnosed as T2 - I am controlled only by diet, with current non-diabetic Hba1c - I can see how T2 diagnosis would increase risk in the eyes of an insurer, my question is more around the ability of insurers to add premiums after a change in circumstances ?

 

[bulkbiker]

I would suggest reading your policy documents as I'm sure it will say something about changes in circumstances and notification thereof.

 

[Rachox]

Not sure if it would be treated the same but I informed my car insurer when I was diagnosed Type 2 in May, I'm on Metformin. They said it doesn't affect my premium. My diabetes education session said that that should be the case.

 

[Fleegle]

I have a question related to this - does anyone know the legal position on whether you should declare T2 after diagnosis if you already have an existing policy running ?- I have life assurance taken out ages ago against a mortgage - diagnosed August 2016 - questioning now whether I need to inform the insurer ?- surely the premium applied is at point of purchase against a known level of risk at that point in time ? - do insurers reserve the right to change premium on information after contract is entered into ? - Whilst I was diagnosed as T2 - I am controlled only by diet, with current non-diabetic Hba1c - I can see how T2 diagnosis would increase risk in the eyes of an insurer, my question is more around the ability of insurers to add premiums after a change in circumstances ?

I think I would save time on reading the policy and just inform them.
The possible scenarios are:-
You don't need to - they will tell you that when you call.
You do need to and it makes no difference they just want to know.
You do need to and it does make a difference.

If you do not inform them and something happens meaning you need to make a claim, your claim may fail if you did not inform them and you don't want that to happen.

The only reason to not tell them is if you are not worried whether at claim time they will pay out of not - and if that is the case - maybe cancel the insurance

 

[Element137]

Thanks all- will have a look ate the policy- I don't want my partner to miss out if anything happens so want to ensure all above aboard - also @bulkbiker - great picture with Dr Fung - must have been interesting meeting him ?

 

[bulkbiker]

Thanks all- will have a look ate the policy- I don't want my partner to miss out if anything happens so want to ensure all above aboard - also @bulkbiker - great picture with Dr Fung - must have been interesting meeting him ?

Certainly was although you can't see in the pic the queue of other people waiting!

 

[Engineer88]

Expect a 200% increase in your premium. its the minimum all insurers increase diabetic premiums by

 

[DCUKMod]

For term assurance (the sort usually associated with a mortgage), the risk is assessed at the point of application, and the premium applied accordingly. There are a few providers who specify that you must inform them on any changes during the policy term, but they are few and far between. If you were applying for any form of increase to the policy; for a new house, or remortgage, you would be obliged to declare it then (with a few exceptional circumstances).

I would go along with @bulkbiker 's suggestion to read the policy documents, and if in doubt, just give the insurer a call. The time to find you got it wrong isn't at the point of claim.

@Engineer88 - an existing term assurance policy would not normally be re-underwritten on declaration of a diagnosis during the policy term, so I would think in these circumstances there would be a disinterest from the company, but you are correct, that a diabetes diagnosis will usually impact on most life assurance policy premiums, for new policies.

 

[Element137]

For term assurance (the sort usually associated with a mortgage), the risk is assessed at the point of application, and the premium applied accordingly. There are a few providers who specify that you must inform them on any changes during the policy term, but they are few and far between. If you were applying for any form of increase to the policy; for a new house, or remortgage, you would be obliged to declare it then (with a few exceptional circumstances).

I would go along with @bulkbiker 's suggestion to read the policy documents, and if in doubt, just give the insurer a call. The time to find you got it wrong isn't at the point of claim.

@Engineer88 - an existing term assurance policy would not normally be re-underwritten on declaration of a diagnosis during the policy term, so I would think in these circumstances there would be a disinterest from the company, but you are correct, that a diabetes diagnosis will usually impact on most life assurance policy premiums, for new policies.

Thank you for that - I am going to go through the policy document the weekend and contact them just to be 100%

 

[ringi]

One way to reduce the risk is just to pay of more of the mortgage every month then you have to. Even making a £50 pcm over payment will reduce the length of most mortgages by many years. So next time you get a pay increase consider using half of it each month to overpay your mortgage.