November 18, 2020

Arranging life insurance with type 2 diabetes

Arranging life insurance with type 2 diabetes

Our client

We were approached by Mrs S who had recently moved house and needed a life insurance policy which would repay her mortgage should either she or her husband pass away.

Both Mr and Mrs S were 58-year-old non-smokers.  We recommended a joint decreasing term life insurance policy with an initial sum assured of £79,000, over a term of 17 years, as this was the most cost-effective way to protect their mortgage.

However, Mr & Mrs S had already applied for this policy via their mortgage broker who quoted them a monthly premium of £55.04. This was not the lowest premium on the market, but their broker was only able to offer cover via one provider.

Type 2 diabetes

Mr S was diagnosed with Type 2 Diabetes at age 53 and was prescribed metformin. He also had a BMI of 41.7 as he is 6 feet tall and 22 stone.  We knew from experience that all insurance providers would add a loading to their standard quoted premiums for Mr S due to his diabetes and body mass index. The Insurance Provider recommended by their broker increased their quoted monthly premium from £55.04 to £143.00.

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.

Call me back

The outcome

We contacted many different insurance providers to see how they would treat an application from Mr S, and following our research, we recommended the insurance provider who offered Mr S the most favourable terms. Their standard quote was £41.70, and the final underwritten premium was £80.14.  Mr & Mrs S were delighted to take up the policy, which is costing them more than 40% less than the policy suggested by their mortgage broker.  This also equates to a saving of £12,823 in premiums over the full term of their policy.

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.

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

Interested in related stories?

Jon’s moving story – being diagnosed with cancer.

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.

Links to third-party websites exist for information only, and we accept no responsibility or liability for the information contained on any such sites.
The existence of a link to another website does not imply or express
endorsement of its provider, products or services by us or St. James’s Place.

Case ref: 98626192