Life insurance with health conditions

Miss_Riot

I did a quote a while a back declaring my numerous conditions and most insurance companies wouldn't insure me. The one that would wanted £150+ a month. That's affordable considering I am in my 30s. 

Can anyone suggest any specialist companies I could go to, or should I just forget it, or is there another option? My partner's insurance payout currently goes to his daughter from a previous marriage (but he is talking about changing this to me, not sure how I feel about this) so I wanted to make sure our daughter and/or my partner was covered if something happened to me.

DullGreyGuy

Sounds like he may need a second policy rather than changing the first as presumably his daughters needs havent changed 

As to your own situation, it would have been much better to approach a good whole of market broker after realising one or two insurers may have issues with your conditions rather than now that you say you've already approached "most" insurers. A broker has access to speak to underwriters prior to submitting and know how best to present these things, unfortunately some insurers are fairly pig headed and if they've declined they are unwilling to revisit the decision. 

Miss_Riot

Yes, tbh I have used a few comparison sites and online quotes and phone calls to companies direct, not gone to a broker because I assumed they would be unaffordable, especially for someone like me who was hoping for something around £15 -20 a month (which is what I could afford realistically). None of my conditions are life limiting or shorten my life span so I don't honestly understand why I was rejected but that said my friend was told that they would be rejected with ADHD. 

DullGreyGuy

Comparison sites are similar to non-advisory brokers anyway... they are remunerated in the same way a broker is in terms of a fee from the insurer/broker that you buy from.  The only difference is the sale is completed with someone else whereas a broker will assist your completion. 

An insurer will always be paying someone to sell their policies so there is no material cost difference between direct, via brokers or via comparison sites

Weighty1

Miss_Riot said:

Yes, tbh I have used a few comparison sites and online quotes and phone calls to companies direct, not gone to a broker because I assumed they would be unaffordable, especially for someone like me who was hoping for something around £15 -20 a month (which is what I could afford realistically). None of my conditions are life limiting or shorten my life span so I don't honestly understand why I was rejected but that said my friend was told that they would be rejected with ADHD. 

Firstly, your friend would almost certainly NOT be rejected due to ADHD, unless there were some really major red flags associated with her situation.

In regards to your circumstances, whilst you say your conditions are not life limiting they are obviously of significance if most companies wouldn't cover you and the one that would wanted £150/month.  How individuals and even doctors assessed medical conditions and how medical underwriters assess them are completely different.  Many people have the mindset that because they feel healthy now then any medical condition won't affect the price BUT if an insurance company offers you cover then they've got to consider the likelihood of a claim over a very long period of time, not just the next 5 or even 10-years.  Also, for many conditions lay people simply don't realise the added risks associated with the conditon.  For example, rheumatoid arthritis might just be seen as a joint condition by a lot of people with the condition there is a major increase in the prevalence of things like heart attacks so underwriters need to take these added risks into account.

Are you in a position to disclose your medical conditions?  I could potentially tell you what the likely increase in premium would be (as a percentage of the standard premium) and whether it would mean most insurers would decline to offer terms as I specialised in arranging cover for pre-existing health questions for around 10-years.  However, I will say, based on what you have told us, I think it would be unlikely that you'd find cover for £15-20 unless you were happy to accept a relatively low level of cover.

Miss_Riot

I contacted a broker and basically I have to undergo a medical. Less than ideal, but I may be able to be insured and it would e under £20 a month now (fingers crossed). 

I found out where I went wrong - didn't go for a level policy! 

DullGreyGuy

Miss_Riot said:

I found out where I went wrong - didn't go for a level policy! 

Depends what your needs are... some will be level and others will be decreasing. You can pay more for a level policy if you want but you'll be paying more premiums than you technically need (though most people are underinsured rather than over)

Weighty1

Miss_Riot said:

I contacted a broker and basically I have to undergo a medical. Less than ideal, but I may be able to be insured and it would e under £20 a month now (fingers crossed). 

I found out where I went wrong - didn't go for a level policy! 

not going for a level policy wouldn't be a mistake.  How did they advise you that it was?  Has the broker indicated to you how the premium may change upon completion of the underwriting?  Quotes only ever show the "standard" premium which is offered to people who have a totally clean bill of health, a BMI which is within an acceptable range, no significant family history of health conditions and don't have a risky job or do hazardous pastimes.  Generally, for most 'rateable' health conditions the premium would be increased on a percentage basis, from 25% up in 25% increments until the insurer feels they've satisfactorily covered the additional risk.  For conditions such as a history of cancer the premium is likely to be increased on a 'per mille' basis which means there is an additional premium added for ever £1,000 of cover.  This can work out horrifically expensive and I've seen £10/month premiums increase to well over £100/month when a young client applies.  Hazardous occupations and pastimes are also normally rated on a per mille basis as well.  This is due to an increased risk of immediate death, not long term risk factor, like being significantly overweight which may cause you to die early but 10, 20, 30+ years down the line.

There is no reason why the type of policy you apply for has a bearing on the end result.  A £20/month premium would be rated the same whether it's a level, decreasing or index-linked policy.