life insurance - how to check two features

xyz123

hi

having taken on a mortgage recently i want to take life insurance.

looked at the MSE guide and got quote form cavendish. few questions if someone can help

1- how do i check if the policy allows guaranteed insurability? i.e. guaranteed cover if a future medical condition is diagnosed? Policy illustration didnt seem to indicate this. they indicate guaranteed premium for duration of policy. if for example someone is diagnosed with a condition later on, does that mean premiums dont increase (if taken with guaranteed preimium?)

2- do policies allow increasing premium in later years upon increasing mortgage or birth of children which increases liability? again how do i check this?

ta

kingstreet

Guraranteed insurability (GIO) is the option to increase the cover (possibly by set amounts) at points in the future, such as marriage, childbirth, house move etc without further evidence of health.

The premiums charged at that time will reflect your age at that time, so they won't stay the same if you elect to increase the cover.

Guaranteed premiums remain the same throughout the life of the policy regardless of state of health unless you exercise the guaranteed insurability option.

GIO is normally awarded following medical underwriting. If you have a medical condition at the outset you may not be awarded GIO as this may be part of the acceptance terms for a "clean proposal" only.

Here is, for example, the wording taken from a Scottish Provident key features wraparound, rather than the actual quotation;-

Increase options
• Provided we accepted your plan at ordinary rates and that you
are in good health, there are some options which allow you
to increase the amount of your benefits within limits, when
certain events happen without having to provide any medical
evidence. Your premium will increase to meet the cost of the
increased cover

ACG

Best bet is to just call the insurer. They can let you know - however you should have received policy conditions - that will mention GIO if you have them or if you went via a broker ask them.

OshayAway

It's also worth noting that some insurers have higher GIO limits than others.

xyz123

OK, so if I don't want to have GIO now, in future can I simply buy another policy if required. So can I have two life insurance policies or like car insurance only one policy per person. Ta

kingstreet

It's not a question of wanting GIO now. When you apply, you will be awarded it, or not, as your health indicates to the insurer during underwriting.

You can have as many life policies as you like, or as you can afford.

The difference between getting new cover and increased cover under GIO, is you'll need to supply new medical evidence for the former.

GIO is great for getting cover if you've had a deterioration in your health since you took out the plan. If there's been no deterioration, you can apply anywhere you like...

Careful with GIO though. There's normally a window of about three months in which these options can be exercised.