Life insurance query

mistyeyed

When I first submitted an application for a life insurance application with More Than (underwritten by Legal & General ) I disclosed my medical history and the premium was estimated at £9.15, I'm 33 and a non-smoker. This was for £150k over 30 years and our mortgage is £108k. We decided to get an additional sum at this stage as thought it would be cheaper than taking out a further £50k in a few years but now I'm not so sure. Are there specific age bands where premiums increase or do they generally just increase year on year

I was aware that it may shoot up a bit once they received my doctor's report as I have a history of depression. I am currently suffering another depressive episode which will have been confirmed in the doc's report (it started after I made my initial application) and I got a bit of a shock at how much the premium has risen by
:eek:
£150k over 30 years -
£100.48 for first four years (extra premium = £91.33)
16.57 for rest of term (extra premium=£7.42)

I also requested a lower quotation of £110k over 30 years
£74.15 for first four years
£12.61 for rest of term.

I just wondered if anyone had any experience of how this is calculated and whether there are any ways to bring the premium down further eg. if they received a report from my psychotherapist who I've just begun seeing after a waiting list of one year, if they consider any extenuating circumstances such as my father's death, my divorce etc.

I will go back and ask about non-level term cover, sorry can't remember the name to see how much this differs as well.

Otherwise, are there any other insurance companies that specialise in policies for people with a history of illness, in particular mental health problems.

Thanks in advance for any help. Please let me know if further information is needed.

dunstonh

I just wondered if anyone had any experience of how this is calculated and whether there are any ways to bring the premium down further

Its up to each insurance company how they measure the risks and decide what to use on their own claims history and underwritng basis.

Otherwise, are there any other insurance companies that specialise in policies for people with a history of illness, in particular mental health problems.

L&G arent coming out well for pricing at the moment but given your medical background that doesnt really matter as until the underwriters know info about you, any price quoted is pointless.

The best thing in this situation is to get yourself to an IFA or independent mortgage broker who can take your medical details down and phone round the insurance company underwriting departments and ask them how they would treat your application. This doesnt count towards refusals or acceptance on modified terms so doesnt need to be declared and its the only way you will know which insurer will give you best terms. You are not able to phone underwriters yourself. It needs an authorised firm to do it.

mistyeyed

Thanks for your reply. My OH has gone through the IFA we used to buy our house but I chose not to as his secretary knows someone at my work and they seem to freely share information which I, specifically in this case, would prefer to keep private.

I'll have a look for another IFA and see what they can find for me.

dunstonh

My OH has gone through the IFA we used to buy our house but I chose not to as his secretary knows someone at my work and they seem to freely share information

If that is the case you should let the IFA know as its a breach of data protection and a sackable offence.

mistyeyed

Sorry, I've not explained myself very well. I work at a Solicitors and used the firm's Conveyancer. The Conveyancer and secretary are quite pally and were likely to be discussing things with reference to the house sale etc, but there was some personal information passed which just made me wary re life insurance.

OshayAway

mistyeyed wrote: »

When I first submitted an application for a life insurance application with More Than (underwritten by Legal & General ) I disclosed my medical history and the premium was estimated at £9.15, I'm 33 and a non-smoker. This was for £150k over 30 years and our mortgage is £108k. We decided to get an additional sum at this stage as thought it would be cheaper than taking out a further £50k in a few years but now I'm not so sure. Are there specific age bands where premiums increase or do they generally just increase year on year

I was aware that it may shoot up a bit once they received my doctor's report as I have a history of depression. I am currently suffering another depressive episode which will have been confirmed in the doc's report (it started after I made my initial application) and I got a bit of a shock at how much the premium has risen by
:eek:
£150k over 30 years -
£100.48 for first four years (extra premium = £91.33)
16.57 for rest of term (extra premium=£7.42)

I also requested a lower quotation of £110k over 30 years
£74.15 for first four years
£12.61 for rest of term.

Are you sure this is a rating? It looks like it could be the commission terms to me. the highest that most insurers will rate a premium is 400% which is aprox five time the orignal premium.

If it is a rating, it is very unusual to have two types for the same condition. You can request a 'reasons why' letter from L&G who will either send it to you or your doctor depending on how sensitive the information is.

In addition to the suggestion to go to an IFA for advice, make sure they are whole of market so that as many insurers as possible can be checked.