We were approached by Mr P aged 76. He had an existing life insurance policy in place with a sum assured of £70,355 for which he was paying £110.83 per month.
The policy was arranged to cover his outstanding mortgage of £70,000, which is to be redeemed when he reaches the age of 85. Unfortunately, his life insurance expires when he reaches 79 years of age, so he is not covered for the final 6 years of his mortgage.
Although Mr P would like to sell his property before age 85, he appreciates that there is no guarantee of this, and was concerned that his wife would not be able to pay the mortgage payments should he pass away. Furthermore, he would not want his wife to be forced into a quick sale and not receive the best possible price.
We discussed a full replacement policy based on a sum assured of £70,000, to age 85 but the monthly premium quoted, £167.22, was beyond his budget. This being the case, he felt that he had no alternative but to leave his existing policy in place.
We suggested an alternative; and asked his current insurer to reduce the sum assured on his existing policy to £50,000 which reduced his monthly premium to £73.85. In addition to this, we recommended a second policy with a sum assured of £20,000 until he reaches the age of 85, for a monthly premium of £48.96. This would mean a total monthly cost of £122.81, reducing to £48.96 after 3 years when his first policy expires.
By doing this there would be a sizeable payment available to Mrs P, although the mortgage amount would not be fully covered, this lump sum could then be used to help her downsize should he pass away. Mr P confirmed to us that the premiums would be affordable within his budget and agreed to apply for the second policy.
However, he then disclosed to us that a year earlier he had undergone a transurethral resection of the prostate (TURP) procedure as he suffered from an enlarged prostate.
What is TURP?
Transurethral resection of the prostate (TURP) is a surgical procedure that involves cutting away a section of the prostate.
The prostate is a small gland in the pelvis which is only found in men. It’s located between the penis and bladder and surrounds the urethra (the tube that carries urine from the bladder to the penis).
If the prostate becomes enlarged, it can place pressure on the bladder and urethra and cause symptoms that affect urination.
There had been a few problems with the procedure and Mr P had not been discharged by his Consultant. We spoke to the Insurer and they advised that even though he had not been discharged, they might still be able to offer him a new policy depending on the GP report.
If you would like to know more about TURP, the NHS website has some useful information.
Our process and advice
At Future Proof, we have access to specialist insurance companies who don’t deal directly with the public. These companies offer more specialised policies, designed to provide cover where other major providers can’t.
Our research process involves us contacting many insurers to find out the best possible outcome for our clients. Which avoids any nasty shocks later on during the underwriting process.
Would the insurer add a ‘loading’ to their standard premium? (this is an additional sum charged on top of their standard monthly premium to reflect their additional risk). Or, exclude a condition?
Might they decline the application? We want to avoid wasting time by making applications which may be declined.
We have up to date knowledge of the ever-changing landscape of underwriting for all providers in the UK and are committed to thorough research so that you don’t have to. What’s more, our advice comes at no obligation and with no hidden costs. You don’t pay us directly but we do get paid by the insurer if you decide to start a policy with them.
The Insurance Provider wrote to Mr P’s GP and Consultant to obtain his medical information. Despite it taking 10 weeks to obtain the medical evidence, the Insurer was happy with his prognosis and offered the insurance on standard terms. Therefore the premium was the same as originally quoted.
Mr P was very pleased to have re-structured his life insurance to ensure financial security for his wife should he pass away.
All our case studies are based on actual client scenarios, many of which pre-date 2020. We are confident that the acceptance decision made by the insurers would still be offered, although it is likely that the rates will have changed, your own circumstances will determine whether what amount will be payable by you and would be fully discussed with you before any plan is implemented.
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.
Whilst you are welcome to get a quote online, we would recommend you speak to one of our advisers.
Any quote that your adviser provides you with will take into account your circumstances and 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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Interested in related stories?
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Do you suffer from a medical condition and concerned you can’t secure Life Insurance? Please view our ‘Medical Guides’ for further information.
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