Declined Life Insurance - Advice Please!

niksyg

Hello,

I have had a search and cannot find a similar thread, but apologies if I am asking a repeated question!

My partner and I have just bought our first house (move in in 10 days!!). We applied for critical illness cover and life insurance for the both of us, he got accepted and I got declined.
I won't go into too much detail, I can later if it is important, but the reason our broker seems to think it was for is that I suffered from depression, for which I was hospitalised on a couple of occasions, with the latest relapse being 2 years ago.
The policy is with Friends Provident, is it likely that I'll be declined by other companies? I was really surprised, I thought the premium would go up, or certain restrictions would be put on the policy, not for it to be declined!

I would really like some advice on this, given that 1 in 4 adults suffer from mental health problems, surely companies cover those of us who have depression or other mental illnesses???

Quentin

It's not going to be straightforward (depression is a bad risk for an insurer because of the suicide issue).

But discuss this with a local broker to see if they can help, or for online specialists google life insurance for depressed people

niksyg

Thanks Quentin - I naively thought they would say "we will only pay out if your death is not self inflicted" - I'd have been happy with that to be honest!!

dunstonh

Depression is split between clinical and event caused. Clinical is not liked by insurers. Event caused can often lead to little premium increases and maybe a delay in suicide cover being offered or not offered at all.

A decent IFA would contact the underwriters and find out which company is likely to consider you on best terms. There are also insurers that focus on high risk cases if none of the mainstream are interested. Again, these are available via IFAs.

OshayAway

niksyg wrote: »

Hello,

I have had a search and cannot find a similar thread, but apologies if I am asking a repeated question!

My partner and I have just bought our first house (move in in 10 days!!). We applied for critical illness cover and life insurance for the both of us, he got accepted and I got declined.
I won't go into too much detail, I can later if it is important, but the reason our broker seems to think it was for is that I suffered from depression, for which I was hospitalised on a couple of occasions, with the latest relapse being 2 years ago.
The policy is with Friends Provident, is it likely that I'll be declined by other companies? I was really surprised, I thought the premium would go up, or certain restrictions would be put on the policy, not for it to be declined!

I would really like some advice on this, given that 1 in 4 adults suffer from mental health problems, surely companies cover those of us who have depression or other mental illnesses???

Although mental health problems (anxiety/stress/depression) are the most common disclosures, it is relatively uncommon to have a case declined. To get as full a picture as possible, you can request a "reasons why" letter from the insurer that will give more details than the standard "...due to medical reasons..." letter. It may be due to a combination of factors. In some cases, for example where the decision is involved or sensitive, this may be sent directly to your GP so that they can answer any questions you have. This also allows you to appeal the decision via your GP and view the GP report that was sent to the provider as it has to be kept on file at your surgery for a minimum of six months.

Mistakes do happen, I recently dealt with a case that was surprisingly declined. On further investigation it transpired that the GP report was completed by a member of staff (not a GP or nurse) and had stated the individual had developed a condition as a complication to diabetes. This was incorrect and we got the decision overturned.

No guarantees but worth a try.

Quentin

Has the mortgage provider made this application as a condition of the mortgage? Or just a bit of extra opportunist selling? (If the latter, then the outcome of the application is of no concern to the mortgage provider).

puddy

how does one search for an IFA, are there lists of 'offically' checked out advisors? is there a website. I have the same issue, other health problems but used to be on anti depressants and attempts to get counselling meant many referrals to different areas (no success, ive given up now)

Quentin

http://www.unbiased.co.uk/

This shows the qualified advisers in your area, though personal recommendation is the best way of narrowing down the list.