Question about life assurance waiver

chickien_2

Evening everyone,

Hoping one of you kind people can help me!

Just received the paperwork through for my husband's life assurance policy that we recently took out whilst applying for a mortgage with a broker. There is a special condition on the last page saying 'subscription waiver will not be payable in respect of any claim arising directly or indirectly from disease or disorder of the spine, it's muscles, ligaments, discs or nerve roots and complications resulting therefrom including treatment'

He has a bad back, which we mentioned, but I thought we would be paying a higher premium for him having this problem, but (if I have understood this correctly) it seems they just won't pay out if he was to die because of anything related to his back?

I don't feel completely comfortable with a policy that may not pay out depending on the circumstances and was just wondering if this is the norm for all life assurance policies, or if others would cover every eventuality, just for a higher premium??

Thanks for taking the time to read this

dunstonh

e has a bad back, which we mentioned, but I thought we would be paying a higher premium for him having this problem, but (if I have understood this correctly) it seems they just won't pay out if he was to die because of anything related to his back?

That is what it sounds like yes.

don't feel completely comfortable with a policy that may not pay out depending on the circumstances and was just wondering if this is the norm for all life assurance policies, or if others would cover every eventuality, just for a higher premium??

It wont affect the life assurance. Just the waiver. It is pretty common for people with bank complaints to find income protection or related options (such as waiver) to have restrictions put on them rather than a premium increase. You could ask your IFA to speak to the underwriting department to see if they would consider rating the premium instead of adding an exclusion. That would at least cost it for you.

ACG

If the exclusion applied is for Waiver of premium only then it doesnt mean if it dies because of a bad back or something related it wont pay out.

Waiver is like an insurance policy so that if your husband is unable to work then it will kick in and pay his premiums - if he is unable to work because of a bad back then waiver will not kick in.

your advisor should be talking you through this though.

chickien_2

Thank you both for taking the time to answer. So if I've got it correct, this waiver means that if he was to be unable to work and pay his month premiums due to a bad back (or any of the things listed) they just would not pay his premium for him?

weighty1_2

chickien wrote: »

Thank you both for taking the time to answer. So if I've got it correct, this waiver means that if he was to be unable to work and pay his month premiums due to a bad back (or any of the things listed) they just would not pay his premium for him?

Bingo!