Is income protection available if I have a high-risk occupation?
Our client was referred to us by his wealth adviser because he wanted to arrange income protection, critical illness and life cover. His main concern was ensuring his mortgage was covered if he was critically ill or if he were to pass away. He also wanted to arrange a policy to replace his income (in full or part) if he was too ill to work.
He told us that he was in good health but had been struggling to arrange affordable cover because his occupation as a scaffolder was considered as high-risk.
The insurance companies he had approached said they would significantly increase his premiums due to the fact that he works at heights of up to 120ft. They consider the risk to be high and that he would be more likely injure himself or worse, should he fall from the scaffolding or if equipment or debris should fall on him.
For this particular occupation, we would expect insurance companies to typically use a ‘per mille loading’ for life insurance and sometimes for critical illness cover. This means for every £1000 of cover he applied for, they would add a loading to the premium.
In this case, most insurers told us that they would add around £1 to the standard quoted monthly premium for every per £1000 insured. An occupation exclusion is quite common for the critical illness benefit and many insurers would decline income protection completely. The client felt that this was very unfair as he only works at this height (120ft) on rare occasions.
As the client required £215,000 of life insurance to protect his mortgage, this resulted in an additional premium in the region of £30-£40 depending on the insurance company.
Using our expert knowledge and intensive research, we managed to find an insurance company who would offer standard rates (no increase to the basic premium) for life insurance And critical illness cover. They also confirmed that they wouldn’t apply any exclusions due to the fact he only works at heights above 50 feet for less than 25% of a typical working week.
We also found an insurance company who would offer income protection on standard rates.
This means that we were able to arrange a decreasing term life or earlier critical illness policy over a 23 year term for £62.27 per month, as well as a full income protection policy which would pay out a monthly benefit of £2,000 if the client was signed off sick from work after a deferred (waiting period) of just 3 days, for a further £90.58 per month.
Please note that the premiums provided are indicative only and are 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.
The client was delighted with the outcome, as he now has the peace of mind that if something bad were to happen, he has the cover that he and his family need.
Getting expert advice is essential
We have a wealth of insurance knowledge. Once we have a good understanding of your requirements we will start the research process.
This involves us contacting many, and in some cases all, of the UK’s leading insurers to discuss your requirements. The purpose of this is to establish how they might treat an application.
Will they add a ‘loading’ to the premium (this is an additional amount on top of the standard monthly premium to reflect their additional risk)?
Would an insurer exclude certain conditions or activities?
Will they decline an application? We want to avoid wasting your time and ours by making applications which might be declined.
For help and advice – Call 0800 644 4468
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Whilst you are welcome to get a quote online we would recommend you talk to one of our advisers.
Any quote we provide you with will take into account to 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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