November 19, 2020

anxiety and panic image

How does long term anxiety affect a life insurance application?

Our client

We were approached by Mrs H who is a 60-year-old nurse and a smoker. She had recently re-mortgaged and discovered that her existing life insurance policy didn’t fully cover her remaining mortgage term. She had a policy with a sum assured of £45,000 over a remaining term of 4 years, however, she had arranged her new mortgage over a term of 10 years.

She approached her existing provider and enquired about the cost of extending the term of her policy. They explained that she would be unable to extend the term of her policy, but they could offer her a replacement policy with a sum assured of £45,000 over a 10year term, for a monthly premium of £55.14 subject to underwriting.

Long term anxiety

She answered their medical questions and was then advised that her premium would be increased by 50% so her actual premium would be approximately £82.70 a month. The Insurer had decided to add the additional ‘rating’ because she has suffered long term anxiety, and been taking a maintenance level of anti-depressants for the last 25 years.  She had also been signed off work for 2 weeks, because of anxiety, during the 6 month period prior to contacting us.

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 then contacted several major Insurance Providers to discuss our client’s history and to obtain an indication of the potential costs. The Provider offering the lowest ‘quoted monthly premium’ of £43.93 also confirmed that they would add an extra 50% to the cost. So, their actual monthly premium would be approximately £68.90.

A good outcome

However, one provider confirmed that they would be happy to offer her standard rates (with no additional rating).  As a result we were able to obtain new cover for Mrs H at a cost of £44.11 per month, instead the alternative of staying with her existing provider who would have charged £82.70 per month.  This represents a saving of £4,630 over the whole term of the policy!

We have expert knowledge of the ever-changing landscape of underwriting for all providers in the UK, and are fully committed to research so that you don’t have to. What’s more, our advice is given without obligation or any 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.

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 at the time would still be offered. Although it is likely that the rates will have changed, any figure quoted 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.

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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