Why is it so hard for me to get income protection insurance?

ACG

I agree underwriters are fine to talk to.
Are you an underwriter starrystarry?

starrystarry

ACG wrote: »

I agree underwriters are fine to talk to.
Are you an underwriter starrystarry?

Yes, life & disability.

*Sits back and waits to be tarred & feathered*

ILW

i would suspect that the insurer does not want the business and has made the premium high hoping you will just go elsewhere. They have saved you the problems of refusing cover though, which may happen if you push your luck.

mpreed

ILW wrote: »

i would suspect that the insurer does not want the business and has made the premium high hoping you will just go elsewhere. They have saved you the problems of refusing cover though, which may happen if you push your luck.

I don't see how trying to get an explanation for why the premium they are offering has almost doubled could be termed as 'pushing my luck'.

All I'm trying to get is some openness - how is that pushing my luck?

rs65

Perhaps an IFA can clarify but why does an underwriter have to explain their decision.

You asked for their price and they gave it. If I don't like a price I'm quoted I just look elsewhere.

weighty1_2

ILW wrote: »

i would suspect that the insurer does not want the business and has made the premium high hoping you will just go elsewhere. They have saved you the problems of refusing cover though, which may happen if you push your luck.

If they did not want the business they would just decline to offer terms. A 100% loading would like be well within their parameters but covers what they feel is the additional risk. I doubt the underwriters even consider what constitutes a "high" premium as they have no idea what the client can afford anyway. For all they know the client may have been expecting a 150% loading......if the adviser had done their due diligence up front.

Also, the implications of having cover refused by a life company are not the same as it occurring with motor/home etc.

I have dealt with numerous clients who had either been declined cover or offered loaded premiums previously and it doesn't stop me finding better terms. In fact, several providers no longer even ask if adverse terms have ever been given

mpreed

rs65 wrote: »

Perhaps an IFA can clarify but why does an underwriter have to explain their decision.

You asked for their price and they gave it. If I don't like a price I'm quoted I just look elsewhere.

Because they initially quoted a price roughly half of that.

If someone gives you an estimate based on the information you give, then they double it because of some extra info they got, is it not ok to want to know why?

What if it's based on a false assumption? It might not be, but why am I wrong for wanting to know?

rs65

mpreed wrote: »

What if it's based on a false assumption? It might not be, but why am I wrong for wanting to know?

I am not saying you are wrong but you do sound disillusioned with this provider. If it is this difficult to get cover, do you really want to be covered by them for something you describe (correctly imo) as a necessity? I would be looking elsewhere.

ILW

weighty1 wrote: »

If they did not want the business they would just decline to offer terms. A 100% loading would like be well within their parameters but covers what they feel is the additional risk. I doubt the underwriters even consider what constitutes a "high" premium as they have no idea what the client can afford anyway. For all they know the client may have been expecting a 150% loading......if the adviser had done their due diligence up front.

Also, the implications of having cover refused by a life company are not the same as it occurring with motor/home etc.

I have dealt with numerous clients who had either been declined cover or offered loaded premiums previously and it doesn't stop me finding better terms. In fact, several providers no longer even ask if adverse terms have ever been given

Most providers ask if you have ever been refused cover, and tend to follow suit. It is possible they are doing OP a favour.

starrystarry

ILW wrote: »

Most providers ask if you have ever been refused cover, and tend to follow suit. It is possible they are doing OP a favour.

We don't tend to follow suit. If someone discloses they've been declined by another company it gives us a heads up that there's something significant in the history, that's all. For example, if a customer discloses nothing more than an ingrowing toenail but also says they've been declined previously I might be more inclined to get a GP report to check their medical history. It doesn't mean I would decline them as well. I might decline them for the same reasons as the other company, but not because they were declined by the other company.