• Guest - w'd love to know what you think about the forum! Take the 2025 Survey »

Refused insurances :(

shedges

shedges

Well-Known Member
Messages
432
Location
Hampshire, Uk
Type of diabetes
Type 1
Treatment type
Pump
Hi,

This post is part moan, part advice-seeking.

After a year of being a contractor I have finally come round to the need for life insurance and income protection, should I die (obviously) or not be able to work for any reason... no sick pay when you're a freelancer.

Went through loads of health-related questions with my financial advisor - they thought the potential asthma diagnosis could cause issues with getting cover. But no - a 1-night stay in hospital earlier this year due to my pump not working properly has rendered me uninsurable :(

Has anyone experienced this before? Any better advice than "try again in 12 months, when the admission to hospital will be outside their parameters" ?

Are there any insurers who specialise in diabetics but might not be covered by the standard searches?

Would really like to know my family are covered, should the worst happen, but at the moment that doesn't seem possible.

Sam
 
Shedges - I am not an IFA, so nothing I write must be construed as advice, as covered by any of the relevant Acts. It is information, I have garnered over many years, working at interesting levels in Financial Services organisations, including actuarial and underwriting areas.

It is my belief that you will struggle to secure Income Protection cover, unless the actuarial view of T1 changes over time. There are simply too many potential complications, and impacts of the disease which could impinge on your ability to work, between now and your retirement. For Income Protection, the contract is for cover which the insurer cannot cancel (subject to the policy conditions being met, e.g premiums paid), until a given end date, which is set at the outset, but usually over 50, and ideally matching your chosen, projected retirement age.

Critical Illness Cover normally falls into a similar bracket to Income Protection, unfortunately.

Life cover is usually available to diabetics, often at "special terms", with conditions attached. Usually that would be an increased premium. Clearly the risk is early death, not the inability to work, as in Income Protection, so it's a lower risk.

You may be able to a secure shorter term sickness policy, with income payable for a defined, shorter period; usually 12 or 24 months, but there are some questions surrounding their,suitability for self-employed people, and those running very small limited companies. Indeed, many of the PPI claims we hear so much about at the moment relate to this style of policy, which was often sold alongside a mortgage or loan.

Whilst you may feel you don't have to declare your hospital admission after a period, you must always ensure you are clear and truthful in any declarations you make about your health to insurers, because failure to do that is when insurers reject claims and refund claimants premiums, at the time the survivors or claimant need the cover, not the premiums.

For what it's worth, I doubt the isolated hospital stay rendered you uninsurable, forever, for life cover.

Did your financial advisor approach more than one company? If he didn't, it could be worth asking his to try someone else, although I would be surprised if you had any joy with Income Protection or Critical Illness Cover.

Good luck with it all, and I applaud you for wanting to protect your family against the unthinkable.
 
Thanks for the feedback. 12 months is simply down to the questions on the application form addressing that period. I realise any potential insurer will gain access to my medical files, but would like to get over that first hurdle.

We definitely searched a range of providers; that showed me a range of quotes before we went through the detailed medical questionnaire... That's what made it worse. I saw what I could have got, then had it whisked away from me.

I can see why income protection may be a sticking point due to the risk... Makes sense. Will have to make sure we have even more savings built up.

As the hospitalisation was mainly down to my pump not working I'm confident I can stay out of hospital long enough to at least get some quotes next time.

Thanks again,
Sam


Sent from the Diabetes Forum App
 
To be honest, th
shedges said:
Thanks for the feedback. 12 months is simply down to the questions on the application form addressing that period. I realise any potential insurer will gain access to my medical files, but would like to get over that first hurdle.

We definitely searched a range of providers; that showed me a range of quotes before we went through the detailed medical questionnaire... That's what made it worse. I saw what I could have got, then had it whisked away from me.

I can see why income protection may be a sticking point due to the risk... Makes sense. Will have to make sure we have even more savings built up.

As the hospitalisation was mainly down to my pump not working I'm confident I can stay out of hospital long enough to at least get some quotes next time.

Thanks again,
Sam


Sent from the Diabetes Forum App
Click to expand...

To be honest the quotes were likely done on an aggregator; a bit like comparethemeerkat, although, obviously a specialist. That you saw quotes doesn't mean any other insurers were actually asked their opinion about you.


In your shoes, I might be inclined to ask the IFA to share your completed application with another insurer. You would have to give specific consent for this, but it would give you a second opinion, and you never know........... Although the same caveats apply as before.

As a matter of interest, which company declined you? And was it for both covers, or were both declines (for life and income protection) separate companies? If you don't want to say, that's fine.
 
I'll have to check the printouts for specific company names. I know one life cover was Legal and General, one was Aviva and I think AXA was another.

Income protection were different companies thru separate appn process


Sent from the Diabetes Forum App
 
OK, at least you've had at least 2 views (life and income protection).

Sorry I couldn't suggest anything more upbeat.
 
Hi, you won't get critical illness, they stopped, that years ago, I used to have it in about 05/06, but I let the policy lapse, really shouldn't have :(. Now hubby pays £10 a month for the same that I have which costs me £37 or just under, for the same cover, but because of type 1 I'm loaded, but my argument is every 6 months I'm seen at the hospital and checked out, where as hubby is not.
 
AndBreathe said:
Shedges - I am not an IFA, so nothing I write must be construed as advice, as covered by any of the relevant Acts. It is information, I have garnered over many years, working at interesting levels in Financial Services organisations, including actuarial and underwriting areas.

It is my belief that you will struggle to secure Income Protection cover, unless the actuarial view of T1 changes over time. There are simply too many potential complications, and impacts of the disease which could impinge on your ability to work, between now and your retirement. For Income Protection, the contract is for cover which the insurer cannot cancel (subject to the policy conditions being met, e.g premiums paid), until a given end date, which is set at the outset, but usually over 50, and ideally matching your chosen, projected retirement age.

Critical Illness Cover normally falls into a similar bracket to Income Protection, unfortunately.

Life cover is usually available to diabetics, often at "special terms", with conditions attached. Usually that would be an increased premium. Clearly the risk is early death, not the inability to work, as in Income Protection, so it's a lower risk.

You may be able to a secure shorter term sickness policy, with income payable for a defined, shorter period; usually 12 or 24 months, but there are some questions surrounding their,suitability for self-employed people, and those running very small limited companies. Indeed, many of the PPI claims we hear so much about at the moment relate to this style of policy, which was often sold alongside a mortgage or loan.

Whilst you may feel you don't have to declare your hospital admission after a period, you must always ensure you are clear and truthful in any declarations you make about your health to insurers, because failure to do that is when insurers reject claims and refund claimants premiums, at the time the survivors or claimant need the cover, not the premiums.

For what it's worth, I doubt the isolated hospital stay rendered you uninsurable, forever, for life cover.

Did your financial advisor approach more than one company? If he didn't, it could be worth asking his to try someone else, although I would be surprised if you had any joy with Income Protection or Critical Illness Cover.

Good luck with it all, and I applaud you for wanting to protect your family against the unthinkable.
Click to expand...


Spot on info.....my mum has always looked after me better financially to be honest as for 30 years diabetes insurance of any kind (except car and house) has been pretty much zero to be honest...it hasn't really changed at all...

That is why it is better to work for an Employer as most of them give life insurance carte blanche to their Employees. And good to read private pension scheme cover too..

I'm not an IFA either..


Sent from the Diabetes Forum App
 
Well, I think that's a bit blanket DD. The OP probably earns more contracting. It's balancing one risk against another.
 
Yes, but I was just pointing out that there are options for ANY diabetic to consider as well.

I'm self employed and can't get anything from govt etc if sick.. At least with Employers your loved ones should get something... Peivate pensions etc should be checked and confirmed for family payout should anything happen.

If anything happens to my hubby with 4 times salary death benefit I would live on a cruise ship for the rest of my life.. My hubby.. He'l carry on working if I die, other than pension payouts he won't get anything from an Employers Carte blanche insurance.

Merely trying to give a little fuller info for other people that may be conceened when they read this post..


Sent from the Diabetes Forum App
 
I recently went through a very lengthy process of getting life insurance. The loading (surcharge) for being T1 was just short of 100%, ie double, after searching the whole market allegedly. This was conditional on a clean report from my clinic. However they had no ongoing conditions about maintaining a certain Hba1c or anything, it was just a one off medical report for a lifetime of cover as far as I could tell.

Sent from the Diabetes Forum App
 
By the way I actually was offered critical illness cover but not only did it understandably exclude anything diabetes related, the loading was something like triple, so I declined it.

Sent from the Diabetes Forum App
 
Spiker said:
By the way I actually was offered critical illness cover but not only did it understandably exclude anything diabetes related, the loading was something like triple, so I declined it.

Sent from the Diabetes Forum App
Click to expand...
I'm astonished you were offered it, beating in mind the potential complications that can arise. And when I think further, the exclusion you mention would be far reaching. Anything remotely, possibly related would be excluded.

As for your life cover, once the contract is struck, they cannot take it away, even if you go completely off the rails. That risk will have been calculated at the outset. In many instances, 100% loading is the minimum. Not all companies operate that way, but some do, for some conditions.
 
AndBreathe said:
I'm astonished you were offered it, beating in mind the potential complications that can arise. And when I think further, the exclusion you mention would be far reaching. Anything remotely, possibly related would be excluded.
Click to expand...
Yes I was pleasantly surprised. But if you think about it what have they got to lose? They exclude all diabetic risks, AND they get triple loading. It's money for nothing.
 
It all comes down to how lucky you feel, versus how lucky they feel. :)
 
Spiker

With your critical illness cover are you covered for illnesses that could be related to diabetes then?

I.e if you had pneumonia, and ended up in hospital.. Would they cover you or would they say that having diabetes made you susceptible and not cover you?



Sent from the Diabetes Forum App
 
donnellysdogs said:
Spiker

With your critical illness cover are you covered for illnesses that could be related to diabetes then?

I.e if you had pneumonia, and ended up in hospital.. Would they cover you or would they say that having diabetes made you susceptible and not cover you?



Sent from the Diabetes Forum App
Click to expand...
That's one of the reasons I didn't take the offered cover. Because if they wanted to, they could link almost anything to diabetes and exclude it.

Sent from the Diabetes Forum App
 
Spiker said:
That's one of the reasons I didn't take the offered cover. Because if they wanted to, they could link almost anything to diabetes and exclude it.

Sent from the Diabetes Forum App
Click to expand...

In that circumstance, it would have to be fully investigated, and that's when more recent HbA1cs, specialist medical reports, and so on would be examined. Of course, that would be additional stress at an already stressful time.

A life house, will fight their corner. They are commercial organisations, in business to provide profits for their shareholders. Insurance/Assurance is merely their product. That said, I have seen some very kind borderline claims paid too.

For the avoidance of doubt, I have a lorry load of CI cover, although statistically, I am at the thin end of the claim spectrum, in terms of age. There are home interesting stats on this URL, if you're interested. This detail is company specific, but it gives an industry sense: http://www.friendslife.co.uk/doclib/Critical_Illness_Claim_Statistics1.pdf
 
shedges said:
Hi,

This post is part moan, part advice-seeking.

After a year of being a contractor I have finally come round to the need for life insurance and income protection, should I die (obviously) or not be able to work for any reason... no sick pay when you're a freelancer.

Went through loads of health-related questions with my financial advisor - they thought the potential asthma diagnosis could cause issues with getting cover. But no - a 1-night stay in hospital earlier this year due to my pump not working properly has rendered me uninsurable :(

Has anyone experienced this before? Any better advice than "try again in 12 months, when the admission to hospital will be outside their parameters" ?

Are there any insurers who specialise in diabetics but might not be covered by the standard searches?

Would really like to know my family are covered, should the worst happen, but at the moment that doesn't seem possible.

Sam
Click to expand...
Hi I just got cover with Aviva - through the insurance surgery (www.theinsurancesurgery.co.uk) they were recommended on which and they specialise in cover for people like us!

Good luck
 
Back
Top