December 1, 2020

Moto-racing-image

Life Insurance and Motorbike Racing

Our client

We were recently approached by Mr W, a 43-year-old smoker, who needed to arrange a life insurance policy as he wanted to provide financial protection for his family should he pass away before reaching the age of 60 (his planned retirement age).

Mr W has what is generally deemed to be a dangerous hobby, motorbike racing, and regularly takes part in a national 650 cc motorbike racing championship on an amateur basis. He was concerned about whether he would be able to obtain the life insurance cover he wanted (£500,000), and if he could, would it be affordable?

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 hobby like motorbike racing?

Might they decline the application? We want to avoid wasting time by making applications which may be declined.

In Mr W’s case, we had to delve into his hobby in more detail, asking about his experience and the number of events he attends each year.

The outcome

One insurer said they would add £291 per month to their standard monthly premium to cover their increased risk, which was the worst case. Two other insurers said they would add between £225 and £267 per month, and all the remaining providers between £100 and £200 per month.

The best feedback we received was from an insurer who said they would add just £84 per month to their standard cost, so a total monthly premium of  £187 for £500,000 of life cover over 17 years.

Imagine if the client hadn’t asked a specialist adviser to do the research for him and approached an insurer directly? He could have ended up paying approximately £380 per month, so a whopping £39,372 in unnecessary premiums over the term of the policy.

It pays to speak with an expert who can save you time and money

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 with no obligation or 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.

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.

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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.

Next steps

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.

Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

Please feel free to read our Independent client reviews, or read about the team at Future Proof

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Take a look at our handy guides ‘What Cover is Right for me?’

Do you suffer from a medical condition and concerned you can’t secure Life Insurance?  Please view our ‘Medical Guides’ for further information.

Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success.  All applications are subject to underwriting.

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endorsement of its provider, products or services by us or St. James’s Place.