July 21, 2016

Life Insurance and Acromegaly

Life Insurance and Acromegaly

We contact all of our customers in order to complete an Annual Review.  The aim of this is to remind them of the cover they have in place and to check that it still meets their requirements.  Not all advisers do this, but we feel it is our duty of care to continue to look after our clients even after their policies have been put in place.

During an Annual Review with a client, it became apparent that her cover was not appropriate for her needs.  The client had an Interest-Only mortgage but it was using a Decreasing Life Insurance policy to protect it.

This meant that as time went on, the amount she was insured for would reduce, whilst her mortgage would remain at the same level.  The result of this would be that increasing amounts of mortgage would still be left at the end of the term which would not be covered by the insurance should she pass away. We always advise clients who have an Interest-Only mortgage, to use a Level Term Life Insurance policy to protect it because the sum assured does not decrease over time, and is therefore guaranteed to repay the whole mortgage amount at the end of the term.

Our client told us that she had been making over-payments to her mortgage but could not guarantee these payments.   We checked and found that her sum assured was just above that which was left to repay on her mortgage, but this could change in the future because she had been diagnosed with Acromegaly in 2002.

What is Acromegaly?

Acromegaly is a rare condition whereby the body produces too much growth hormone, causing body tissues and bones to grow more quickly.

Over time, this leads to abnormally large hands and feet, and other wide ranging symptoms.

Acromegaly is usually diagnosed in adults aged 30 to 50, but it can affect people of any age.  It can usually be successfully treated, but early diagnosis and treatment are imperative to prevent the symptoms getting worse and reduces the chance of complications. NHS October 2020

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

The Outcome

After extensive research, we found an insurer who was prepared to offer the best terms for our client so we made the application. Our client was accepted for a Level Term Life Insurance policy with a sum assured of £98,000, over a term of 20 years for a monthly premium of £63.51.

She was happy with the terms offered to her despite that 100% loading on top of the insurers standard quoted premium, owing to her Acromegaly, and she now has more comprehensive cover as a result.

We also stressed to her, that she needed to place her policy in Trust because she is single with a partner and has a stepdaughter, and placing her policy in Trust would ensure that the policy proceeds are paid out to the trustees more speedily in the event of a claim being made. We also advised her to set up a Will to make sure her life cover and property go to the people she wants it to.

Trusts are not regulated by the Financial Conduct Authority.

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.

Client Ref: 97473673

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.

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.