I’m an Army reservist and they wanted to double my premium
We were approached by a client who needed life insurance. He wanted to make sure that if he passed away, both his mortgages could be paid off.
He was certain that the mortgages would be paid off by the time he retired, so we agreed to quote for a life assurance policy based on a sum assured of £200,000, over a term which would expire on his 70th birthday.
The monthly premium quoted was £52. However, due to his age and the amount of cover he needed, the insurer would require him to undergo a medical. Our client told us that he had a completely clean bill of health and had a relatively low-risk job as a security guard.
The application process
During the application process, we discovered that he was on the Army Reservist list.
The Army Reserve is the largest of the Reserve Forces, who provide support to the Regular Army both at home and overseas. Throughout its history, almost every major operation has seen reservists operate alongside their regular counterparts.
Army Reserve soldiers come from all walks of life and work part-time as soldiers for the British Army alongside full-time regular soldiers.
His medical was conducted within a week and the insurer assessed the results and confirmed he had no medical issues. Unfortunately, when they examined his role in the Army Reserves they decided to increase his premium from £52 to £97 per month!
Level of risk
Our client was only listed on the Reserves because he had been a member of the armed forces 15 years previously. He was not currently serving, or due to serve as a reservist, and it was highly unlikely that he ever would. We felt the premium increase was very harsh, and had he applied to the insurance company directly, he would not have known how to appeal the decision and ended up paying the higher amount.
A great outcome
Due to our collaborative relationship with the underwriters, we challenged their decision. Initially, they remained firm on their decision, confirming that the premium should be £97 a month. We pressed them to reconsider as the client was now 43 years old and it was highly unlikely he would have to serve on the front line as a reservist. Eventually, our perseverance paid off and we managed to get his premium down to the initial (standard) premium of £52.
Often the cost of life insurance is affected by the most unlikely things. Seeking the help of a specialist adviser will mean you avoid ending up with inappropriate or overpriced life insurance
The advice we gave to our client has saved him from a 100% increase in his monthly premium, a total saving of £9,180 over the full term of the policy!
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 what amount will be payable and this 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 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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