March 4, 2021

Life Insurance with a rare medical condition

Life Insurance with a rare medical condition

We were contacted by a 39-year-old gentleman, who needed advice on life insurance. He wanted to arrange a Life Insurance policy based on £90,000 of cover over a term of 23 years. He also wanted a Family Income Benefit policy which would provide this family with an income of £4,200 per month.

What is Family Income Benefit?

Family income benefit (FIB) is a type of life insurance which will pay out a monthly income upon the death of the policyholder.

These policies run for a set period of time known as the term.

Should the policyholder pass away within the term, the policy will pay out a regular tax-free income until the end of the term. Whereas with a traditional life insurance policy a lump sum is paid out upon death.

Medical History

During our initial conversation, our client told us that he had been diagnosed with a rare medical condition. At the age of 27, he was told he had a blood disorder called Polycythaemia Vera. (PV).

It’s usually caused by a change in the JAK2 gene. This causes the bone marrow cells to produce too many red blood cells.

Polycythaemia, also known as erythrocytosis, means having a high concentration of red blood cells in your blood.

This makes the blood thicker and less able to travel through blood vessels and organs. Many of the symptoms of polycythaemia are caused by this sluggish flow of blood.

The treatment for this disorder is called Venesection. This involves removing about one pint (half a litre) of blood at regular intervals.

Similar to the procedure used for blood donation. Source: NHS April 2019

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 is 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

Due to his rare medical condition, Polycythaemia Vera was diagnosed at such a young age, most insurance companies told us that they would decline to offer him cover. Although a few would accept whilst significantly increasing his premium.

Our adviser completed thorough research of the market on behalf of our customer and found one insurer. They indicated that they may offer him the cover but with a 75% loading on their standard premium.

A GP report was applied for and his information assessed. This resulted in the insurer offering him the cover with a 50% loading on top of their standard premium. Which was even better than expected.

The final monthly premium for the Level Term Assurance policy was £13.07, and for the Family Income Benefit policy, £83.44.

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.

The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

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.

Call me back

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.

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.