Can life cover be arranged even if another insurer has declined?
We were approached by a client looking for a new life insurance policy, as his previous cover with a high street bank had recently expired. The client had applied for new cover with his bank, but unfortunately they declined his application.
Our client therefore made an application to another insurer, but based upon his medical disclosures and the report obtained from his GP, the application for insurance was declined again.
The client, a 65-year-old company director, told us that he had repaid his mortgage and his children had flown the nest. He was, however, keen to put some cover in place to provide financial security for his wife when he passes away.
A challenging medical history
During our fact-finding process we discovered that he had a heart condition and had had a stent fitted 5 years ago.
A coronary angioplasty is a procedure used to widen blocked or narrowed coronary arteries (the main blood vessels supplying the heart).
However, most modern angioplasty procedures also involve inserting a short wire-mesh tube. This is called a stent and it is put into the artery. The stent is left in place permanently to allow blood to flow more freely.
Two years later, he suffered from shortness of breath and thought that a chest infection might be the cause. He went to visit a cardiologist who said there was damage to his left ventricle.
As a result, he was given drugs for 3 years and had a BMP test, which shows how much pressure the heart is under. His reading was 4000+ which was exceptionally high.
At this time he also received treatment to put his heart back to the normal rhythm and has been fine ever since. Cardioversion is a medical procedure that restores a normal heart rhythm in people with certain types of abnormal heartbeats (arrhythmias).
He continued to have tests every 6 months and his BMP reading has now reduced to 74, which is within the normal range. His cardiologist has confirmed that his condition is now very stable, but he does still have to take medication for raised cholesterol and raised blood pressure.
Once we had a full understanding of our client’s medical history, we start our research process. This involves us talking through a potential application (a ‘what if’ scenario) directly with underwriters at all the major insurers.
This process saves time as it helps us to avoid making applications to providers who may decline to offer cover.
It also helps us to provide more accurate feedback to a client, as we can also advise them of their likely underwritten premium, any exclusions together with the terms & conditions which may be offered before we actually spend the time making the application.
Every insurer we contacted, with the exception of one, said they would also decline his application.
The good news
There was good news though, one insurer was happy to consider offering cover!
We talked through the potential terms with our client, who was happy to go ahead. We completed the application with him over the phone, the insurer wrote to his GP and a few weeks later the offer of cover was confirmed.
The client is now very happy to have a life policy in place which will leave a lump sum of £175,000. Should he pass away in the next 15 years. All for a monthly premium of £360.32.
Please note that any premiums mentioned are indicative only and based on this specific case study/ example, which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.
If you are interested in arranging protection insurance it really can pay to take expert advice.
Whilst you are welcome to get a quote online but we would recommend you talk to one of our advisers.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.
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