Problems getting Income Protection

GoldenShadow

Hi

Finally had a response re Life Insurance and Income Protection from Aviva. I got a big fat decline on IP and they wont pay out waiver premium or permanent total disability either, only if I die basically.

Better than nothing, but my broker is going to see what he can do elsewhere.

Does anyone have any experience of this kind of thing? I have OCD and had a difficult childhood so my medical records are rather spattered with mental health issues. I understand insurance firms are in it to make money, but it feels a bit rotten that I'm still being haunted by my childhood by being unable to get the level of insurance my OH can get no bother. I thought they would just put a big fat exclusion on mental heath related issues

I would be grateful if anyone knows of any firms who might be more approachable albeit higher premiums. Took ages to get my medical records sent to Aviva so would prefer not to have to request it too many more times.

macca1974

Income protection is payable if you are unable to work due to ill health. I think from memory (not having had anything to do with it for a few years), that the most common cause for claims on IP were stress/mental health related and bad backs. So in many cases, the underwriters will look at this and either exclude or decline.

Depending on the type of broker you are using, they should have access to the underwriters "presale" lines for a number of the major insurers. What I'd be looking to do is pre-qualifying before actually going ahead with any further applications. So if they have some full details of your health, they can contact the underwriters and find out if they are likely to take you on (or at what terms / loadings etc).

I always thought it was a really good thing with IP that they underwrite it thoroughly, as it means that claims are more likely to be paid. But, that doesn't help you unfortunately. I'd be asking your broker as they are the ones that will be able to make the best recommendations based on your health.

pinkteapot

With these protection policies, like with life insurance/assurance, they don't make exclusions for particular conditions - they just accept or decline.

Firstly, don't be disheartened. My hubby had trouble getting life insurance due to his medical history and I hated it - felt like the message was that the underwriter thought he'd keel over next week!

Is your broker a specialist in pre-existing medical conditions? There are such brokers - we used one (The Insurance Surgery - but they don't do income protection policies) - so have a look around if your broker isn't getting far. As above, a decent broker will be able to find out which insurers it's worth applying to. Different ones will accept different conditions.

GoldenShadow

More fool me hey, I was thinking it would be like pet insurance and they'd just say no based on X.

Thanks both, my broker has gotten back to me already and got some ideas already which makes me feel a bit better. Feel bad for OH more than anything, had no trouble insuring him for this that and the other, but not so easy for me...

Nice to hear that other people have managed it though, and for the ideas just in case, so thank you.

pjereed

Agree with both comments about a specialist broker giving the best advice.


Cavendish Online (recommended in the insurance section) have an 'advised' route which specialise in giving advice about health conditions, hobbies & occupations. They may be worth contacting and explaining your situation.


Hope you find someone who can help!

pjereed

...another option you may want to consider is getting a copy of your medical notes from your GP (it's called a SAR request and at a maximum costs £50 - usually a lot cheaper than that), then you can send these on to insurers on a 'pre-sales' basis (as mentioned in a previous post) and underwriters can then assess the outcome of an theoretical application without you even applying.

stator

If you took out a different product like Accident Sickness and Unemployment insurance you wouldn't have to worry about it until you make a claim. They check your medical history when you make a claim, to see if the claim is related to anything before the insurance. But these policies are generally limited to 12 months payout although some go higher.

GoldenShadow

Thanks for all the advice everyone, duly noted

ACG

pinkteapot wrote: »

With these protection policies, like with life insurance/assurance, they don't make exclusions for particular conditions - they just accept or decline.

Thats not true.

Exclusions can be made on certain policies depending on the detail.

Different insurers have different ways of underwriting. Its not unheard of to see someone declined with one insurer but accepted at standard rates with another. Im not sure with income protection you will get full cover at standard rates with a history of mental illness as it is one of the biggest claims made. But at the same time, im not sure I would give up just yet.

Maybe find another broker?
There are also short term income protection policies that would pay out for 12 months who do not necessairly mind pre existing conditions. I understand that is not as good and far from ideal but it could be an alternative.

Another option is that some employers have group schemes where they do not do the same level of underwriting. I do not know enough about these policies as I have never done one but it could be something to look into maybe.

GoldenShadow

Broker has come back to me. Found one option for IP with a mental health exclusion. The price I've got for life insurance is about the best I'll get he thinks.

pjereed

Great news! Glad your adviser was able to find a solution!