December 1, 2020

MENTAL HEALTH concept with stethoscope and heart shape

Life Insurance with a history of mental health issues

Our client

We were approached by Mrs L, a 51-year-old smoker who wanted life insurance to offer financial security to her children should she pass away.

She told us that she had been turned down by two Insurance Providers before contacting us due to an early medical history of depression and an eating disorder. Later on in life, she had been affected by alcohol abuse and spent some time in a rehabilitation unit.

However, these issues were all historic and she had not suffered any mental health symptoms, or required treatment in the past 5 years.

Although Mrs L is slightly underweight with a BMI of 17.9 (the healthy range is 18.5 to 24.9), she is otherwise physically healthy.

An application was submitted for a level term life or earlier terminal illness policy, with a sum assured of £20,000 over a term of 20 years, for a monthly premium of £13.15.

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

The Insurance Provider we applied to requested a medical questionnaire from the clients GP, and once assessed, they offered her a policy albeit with a ‘loading’ of 200% on top of their quoted premium, meaning a revised premium of £34.31 per month.

Whilst she was pleased to be offered the cover, the premium was unfortunately beyond her budget, so we reduced the sum assured to £10,000.  This reduced her premium to £18.00 per month, which was within budget and gave her peace of mind that her two children would have a legacy should she pass away.

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 Record 15503221

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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endorsement of its provider, products or services by us or St. James’s Place.