Life Assurance Help

natalieho

Im hoping someone will be in the know here, ive had life insurance for 6 years it expires in 2048, earlier this year i was diagnosed with Crohns Disease.

My insurance called the other day trying to change my plan, ive not done the new medical questionaire yet, and this is the first time that they have called me in 6 years, so im thinking they have my medical records and are trying to make my change policy and close the old one.

Now am i right in thinking i dont need to disclose my new medical diagnosis on the basis that ive decided i will not be altering the policy so wont be needing to answer the questionaire, and i will be still covered under the original policy if i die.

I did a few quotes on line and realise i cannot get life cover now disclosing this info so im thinking just stick to the old policy.

dunstonh

My insurance called the other day trying to change my plan, ive not done the new medical questionaire yet, and this is the first time that they have called me in 6 years, so im thinking they have my medical records and are trying to make my change policy and close the old one.

Insurance companies do not phone up to change your plan. Sales reps from the insurance companies will often be the ones doing that. Typically to earn them a new commission.

Now am i right in thinking i dont need to disclose my new medical diagnosis on the basis that ive decided i will not be altering the policy so wont be needing to answer the questionaire, and i will be still covered under the original policy if i die.

If it is a sales rep then it will be a new plan and new medical disclosure. If it is to effect a change under a guaranteed insurability option then you still need to disclose it. However, they cannot refuse to accept cover.

I did a few quotes on line and realise i cannot get life cover now disclosing this info so im thinking just stick to the old policy.

You still can get life cover. Just not from mainstream. Your existing plan, if it has a guaranteed insurabilty option on it can also be used to increase cover (typically within limits or certain events).

vaio

dunstonh wrote: »

Insurance companies do not phone up to change your plan. Sales reps from the insurance companies will often be the ones doing that. Typically to earn them a new commission........

That's the sort of [STRIKE]insane ridiculous[/STRIKE] fine distinction that would only be advanced by the finance industry :rotfl::rotfl::rotfl:

dunstonh

vaio wrote: »

That's the sort of [STRIKE]insane ridiculous[/STRIKE] fine distinction that would only be advanced by the finance industry :rotfl::rotfl::rotfl:

Why? The sales company is typically a separate trading company that is an agent of the insurer. Indeed, in some cases, the trading company may be an agent of the insurer but operate under a totally different name.

The insurer will deal with the existing policy but the sales company will only be interested in new policies. The sales reps from the sales company will often to things that exasperate the insurance company. Sharing a logo doesnt make them the same thing and it is vitally important that the OP finds out if it is the insurance company requiring admin on the existing policy or a sales company trying to sell a new policy.

vaio

dunstonh wrote: »

Why?......

Because it's sneaky, underhand, probably immoral & possibly illegal and done with the sole aim of extracting more money from the poor punter whether or not they need/want the additional/replacement policy. Isn't the technical term "churning"?

In short, all the qualities we have come to expect our illustrious world class finance "industry" to display

dunstonh

Because it's sneaky, underhand, probably immoral & possibly illegal and done with the sole aim of extracting more money from the poor punter whether or not they need/want the additional/replacement policy. Isn't the technical term "churning"?

That is but it isn't what you indicated was wrong in your earlier post. Indeed, it is the very thing I warned about but you called insane/ridiculous.

To repeat, my gut instinct on this is that it is not the insurer but a sales rep who may be tied to that insurer trying to get a new sale.

vaio

my point was in answer to your....

dunstonh wrote: »

Insurance companies do not phone up to change your plan. Sales reps from the insurance companies will often be the ones doing that. Typically to earn them a new commission........

and your assertion that somehow the "insurance" and "sales" are different. Whether they be different departments, trading entities or whatever the ordinary punter regards then as "my insurer"

They cold called with details of the OP's existing policies so it reasonable to assume that somewhere in the organisation there is a "controlling mind" who has issued an edict to ring exisitng customers and try and sell them a new/replacement policy.

dunstonh

and your assertion that somehow the "insurance" and "sales" are different. Whether they be different departments, trading entities or whatever the ordinary punter regards then as "my insurer"

If they do consider them the same then they need to be aware that they are not. In "product" terms, one is a retailer and the other is product provider.

natalieho

So im still covered by my existing policy and dont have to tell them? I do have something in writing saying if something changes like children i can increase the payout without disclosing medical information.

Ive had 2 children since taking out the policy so maybe thats the way forward.

weighty1_2

natalieho wrote: »

So im still covered by my existing policy and dont have to tell them? I do have something in writing saying if something changes like children i can increase the payout without disclosing medical information.

Ive had 2 children since taking out the policy so maybe thats the way forward.

Normally Guaranteed Insurability Options have to be exercised within a certain period of time of the event happening ie. within 3-months of an increase in a mortgage, so I'd be surprised if you can utilise these, unless one of your children has been born very recently?

I do think you would be able to obtain cover through a mainstream provider, however, depending on the severity of your symptoms, when your last flare up was, whether you are taking immuno-suppresant medication and/or steroids and the extent to which your digestive tract is affected then you are likely to simply experience an increased premium. It's therefore VERY unlikely that you would be able to improve on the existing terms, however, these should remain unaffected by the recent diagnosis.