January 15, 2021
How would having Type 2 diabetes affect an income protection application?

How would having Type 2 diabetes affect an income protection application?

Our client

We were contacted by Miss G, a 54 year old non smoker and self-employed Marketing Consultant.  

She was single with no dependents, but told us that she was concerned that she had little or no financial safety net should she fall ill or suffer an accident.

The benefits provided by the state would not cover her mortgage and monthly outgoings, and despite having some savings, these would not last longer than two months.

Miss G had encountered problems in obtaining an insurance policy in the past, due to her being diagnosed with Type 2 diabetes aged 46. 

She maintains a healthy lifestyle to keep the condition under control and has never had any complications.  However, many Insurance Providers will not offer comprehensive cover such as Critical Illness and Income Protection, due to the increased risk of illness as a result of her diabetes.

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. Future Proof 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.

How would having Type 2 diabetes affect an income protection application?

The outcome

After extensive research, we were able to find one insurer who would offer her Income Protection, albeit with a slightly increased premium on account of their deemed increased risk.

An application was submitted and the Insurance Provider wrote to Miss G’s GP for further medical details around her diabetes.

Miss G is relieved to have obtained an Income Protection policy which will provide cover until she reaches retirement age of 67 – for a monthly premium of £72.91 (the standard premium was £52.67) .  The policy will pay out a tax-free payment of £2,000 per month should she be unable to work for more than two months due to any medical condition. (including complications from diabetes). 

It is important to note that this is a Short Term Income Protection policy, where the maximum claim period for any claim is two years, although multiple claims are allowed throughout the term.

Client ref 155505856

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.

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

Jon’s moving story – being diagnosed with cancer

Can we rely on ‘free’ employment benefits?

The protection industry pays out over £5.7bn in claims in 2019

What questions will an adviser ask me?

Will my claim be paid?

Why you can trust Future Proof.

The benefits of an index-linked insurance policy

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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