Level Term Life Insurance Guide Discussion

Ange635

I wonder if anyone can help me. My Life insurance finished in 2019 and while clearing out old documents I came across my policy.  Back in  late 2011 I was diagnosed with Meningiomas  ( benign brain tumours). At the time I I looked for my policy to see if I could claim but couldn’t find it. So I ended up forgetting about it. On clearing out old paper work, I found the policy and decided to look to see if I could have claimed. It did state that I could have  claimed for benign brain tumours.  I recently spoke with someone about it and they said I may still be able to claim on my pre existing policy. Can anyone give me advice on this as to wether it’s possible or not please.  I do now have a new life insurance policy against my remaining mortgage but I know I can’t claim from them for a pre existing life long condition. 

Sandtree

Contract law gives you 6 years to make a claim. T&Cs can try to make it shorter but the Financial Ombudsman can overrule the T&Cs where they think they are unfair. What the ombudsman may think is unfair depends on exactly what the terms are and if the delay in reporting the claim has prejudiced the insurers position at all.

You say you have the policy docs and that it covers this scenario then contact the insurer and make the claim. 

dunstonh

On clearing out old paper work, I found the policy and decided to look to see if I could have claimed. It did state that I could have  claimed for benign brain tumours.  

The fact you are still here indicates that you cannot claim on the life assurance element.  Did the policy include other segments, such as critical illness cover?
Is the documentation you read personalised or generic?   i.e. a policy that offers CIC and Life assurance may cover things relating to both in the generic paperwork but unless you had both, it may not apply to you.

jon0108

Hi, we have had level term life assurance cover for death when we took a mortgage out 13 years ago that would cover the mortgage and my family. 
We were are now looking to move house, which means extending the length of our mortgage for a further 10 years.

I wondered if people thought it is best to get a new policy to get the extra cover we need or if it might be better to try and get an extension on our current policy. 

We have had a couple of health changes since taking out the original policy, nothing major, mild blood pressure and asthma.

thanks in advance for an help.

dunstonh

I wondered if people thought it is best to get a new policy to get the extra cover we need or if it might be better to try and get an extension on our current policy. 

Does your plan have a guaranteed insurability option on a house move? (some do, most don't).

We have had a couple of health changes since taking out the original policy, nothing major, mild blood pressure and asthma.

Due to CV, they are not considered as mild as they used to be.  Be prepared for premiums to be increased after underwriting.

Weighty1

jon0108 said:

Hi, we have had level term life assurance cover for death when we took a mortgage out 13 years ago that would cover the mortgage and my family. 
We were are now looking to move house, which means extending the length of our mortgage for a further 10 years.

I wondered if people thought it is best to get a new policy to get the extra cover we need or if it might be better to try and get an extension on our current policy. 

We have had a couple of health changes since taking out the original policy, nothing major, mild blood pressure and asthma.

thanks in advance for an help.

Generally you cannot get extensions to life insurance plans, even those with the Guaranteed Insurability Options mentioned by Dunstonh above only allow increases to the cover amounts, not extensions of the term.  If your existing insurer suggests they can extend the term then they are likely going to underwrite you as those you are taking out a brand new policy, in which case you may as well search the market to ensure you are looking at the most cost effective options.

If the asthma is mild, with no need for steroid tablets, very few attacks and less than daily symptoms (and you're a non-smoker) then it's unlikely to affect things, even with the coronavirus situation.  Same with the hypertension.  Provided your blood pressure is well controlled on the meds and you don't need too many different sorts of tablets you should be ok.

jon0108

Thanks for the feedback both, really appreciate it. 
Think I am going to search the market for best value.
One final question. I wondered if we need to advise our current insurers of any changes to health as we go or is this generally not required.

Thanks again.

Jonathan

dunstonh

One final question. I wondered if we need to advise our current insurers of any changes to health as we go or is this generally not required.

Life assurance is a snapshot of your health upto commence of the policy.   Once it is in force, you do not need to tell them anything about your health and how it has changed.

The_Furniture_Restorer

dunstonh said:

Life assurance is a snapshot of your health upto commence of the policy.   Once it is in force, you do not need to tell them anything about your health and how it has changed.

Is that the same for level term assurance? 

I’m unsure what to do regarding my policy as my circumstances have changed somewhat.

Next month I am due to pay off my mortgage five years earlier than the original term, after over paying for the previous five years. When we took out the mortgage we also took out a level term policy. Obviously, the policy expires at the original mortgage redemption date which is approximately five years hence. The sum assured being our original mortgage amount. Fast forward to 2022 and I had to undergo very serious heart surgery that has had lasting and potentially life shortening consequences. That said, there’s a very good chance that I will outlive the next five years, and in pretty fine fettle. However, given that I’m extremely unlikely to ever get offered any life assurance again - or at least not at anything less than knee-buckling monthly payments - I’m thinking that it might be worth carrying on the policy until it’s natural termination, especially if what Dunston states above also applies to level term. Initially, I thought I would cancel the policy upon settlement of the final mortgage balance but now I’m not so sure that would be wise. For clarity, the policy is approx £20 monthly and sum assured approx. £90,000

Complications from the health issues I had inc heart attack, stroke, triple bypass surgery and two mechanical heart valves, acute kidney injury, heart failure…….

Given this little resumè, I’m thinking that my twenty quid per month premium represents good value and is something I’m unlikely to ever get offered again so it’s probably worth keeping. Unless, of course, I’ve overlooked something? 

DullGreyGuy

Yes, it applies to term life insurance irrespective of if it's indexed, level or decreasing. In general all "protection"/long term insurances are the same, based on your position at inception and whatever changes for better or worse is covered and doesn't need to be informed to the insurer. 

In your case its worked to your advantage, had you instead bought an annuity rather than life insurance then it would have been to your disadvantage as you'd have been entitled to enhanced terms had you had the illnesses before buying it but they equally dont have to re-evaluate the payments based on your changing conditions.