Income Protection - Accepted by LV but with limitations... your thoughts?

mickym

Ive been trying to arrange some income protection insurance for myself, as i am the main earner for the household.

I have been doing this through theidol.com.

The options were Legal and general and LV. LV came out a bit cheaper in the initial quote, but once they received the application form they have adjusted the quote i was given from £19pm to £26pm....a fair jump...presumably this is due to my job (a designer).

They have accepted my application, but said there is a disclaimer that I thought was odd.

'Please Note, the premium has increased by £7.34 from £19.01 to £26.35. LV= have increased your premiums due to your occupation class. LV= will not pay a claim if it is due to, or arises from disease or disorder of the muscle ligaments vertebrae joints or intervertebral discs of the vertebral column or related nerves including sciatica. '

Is this the norm, or are they putting this in place due to whiplash accident I had a few years ago?

The whole point of me paying this insurance is to cover me should I have an accident or sickness that puts me out of work... and having back problems can do this... so worried i may not be covered for a possible illness.

I requested I see any medical documents that LV get to see and I havent seen anything, so presume they havent seen any of my medical notes etc.

Any feedback would be appreciated.

InsideInsurance

If they were only a "bit cheaper" before the premium hike are they still the cheaper option? Is it not worth seeing if L&G apply the same endorsement?

dunstonh

presumably this is due to my job (a designer).

unlikely as the illustration stage prices the occupation in to consideration. Unless you picked the wrong occupation at the quote stage. (their reason you quoted suggests that was the case)

Is this the norm, or are they putting this in place due to whiplash accident I had a few years ago?

Quite possibly. What does the adviser/broker say about it?

I requested I see any medical documents that LV get to see and I havent seen anything, so presume they havent seen any of my medical notes etc.

How long was it between quote and terms being offered? If just a few hours to a week, then that means they havent gone to the GP. Also, if you selected the option to view information then it comes to you first and holds up the process. So, that suggests they havent gone to GP.

OshayAway

If you have had back problems within the last 3 years it's likely to attract an exclusion.

kingstreet

I'd say if you've suffered such an injury it's completely normal for an insurer to exclude any condition which may be caused by, or aggravated by, the aftermath of the injury.

As they would never be able to prove or disprove the cause of the condition it's normal to exclude any such related conditions.

Now, as dunston said, if they haven't asked your GP for a report this may be more of a precautionary action on their part. It may well be another insurer, on looking at a GP's report, may feel the exclusion unnecessary and you may be accepted on ordinary rates.

How much help and support are you getting from your "arranger?"

mickym

theidol have said that they have possibly put the disclaimer in about back and muscle pain due to minor whiplash details I put into my application.... odd as it was a few years ago and i am completely recovered from it.... and whiplash isnt sciatica or anything else.

LV originally quoted £19pm, aparently that was on Clas1 employment, when my job is in fact Class 2 in their eyes.... so policy jumped to £26pm.

L and G originally quoted £23pm...and that offered more cover per month if needed...so downloaded application form now and will send off with them.

been happy with L and G so far as they have been quick to process my life assurance and family income benefit i have with them.

Thanks for your help.

OshayAway

You will need to disclose it if you have had any symptoms or medication in the last 5 years, same with L&G. PHI has the most stringent underwriting as you are more likely to claim than life and / or cic. The fact that neck, back and joint problems account for the second most common cause for individuals being signed off work, insurers are quick to apply exclusions. Not to mention the fact that you are more likely to have reccurance of problems in future. I very much doubt L&G would be any different but there's no harm in trying.

Having said that, bear in mind that most insurers ask about special terms (including exclusions) offered elsewhere, normally without a limit on timescale.

ACG

It sounds like the premium has increased due to your occupation. The exclusion is put on there as you have injured your back in the past.

This is where if you had gone with a proper advisor they would email the underwriters at the various companies to see who would rate the premium, who would exclude it and who wouldnt be bothered about it. You then have the choice of normal rates (if offered) a higher premium with full cover or a cheaper premium with an exclusion.

Some companies if you ask will remove the exclusion and increase the premium instead.

If your not happy try other companies. But why are you limited to just those 2 companies? There are loads of companies out there why just 2? If its based on the premium alone then thats not the way to do it.

mickym

thanks

These are the only 2 companies offered by theidol website for my circumstances i have entered. Theidol website seemed to offer cheaper insurance and also long term cover, than other places I have shopped around.

Not using an advisor... I contacted 2 local advisors requesting about looking for some income protection insurance, but they didnt get back to me.

I presume it was because I mentioned I had already arranged my life assurance, and FIB through Cavendish they thought they couldnt earn much out of me.

ACG

The idol will be cheaper than an advisor, they take lower commission rates as its all online. But if you take out cover through an advisor 1 they will do the work, 2 you are covered if it turns out to be bad advice and 3 it saves you having to get special terms wasting your time.

Advisors probably havnt called back as they think they will do all the work then you will go to an online site to save a few pound a month. Its like anything i suppose you pay for what you get. If you do the work yourself you will save money. Although to be fair its just bad manners not to respond even if its to say we would prefer not to work with you.

LV are quite good i have found for stress related illness.

dunstonh

a number of the companies offering PHI still require manual illustrations to be obtained and dont offer it via a quote portal. So, by using their website you have limited your options down.

I presume it was because I mentioned I had already arranged my life assurance, and FIB through Cavendish they thought they couldnt earn much out of me.

Cant blame them to be honest. There is a subset of individuals out there who see advisers, take the information and bypass the adviser. They probably felt you would do just that.