Income protection insurance exclusions

DullGreyGuy

Gazelle1985 said:

I might take out this policy for 4 years, then cancel and take out a different one without having to disclose hopefully.

You'd take out this policy for the full duration and then cancel after 4 years... if not then if you became seriously in in 3.5 years time it'd only payout for 6 months (less the deferment period). Similarly you may, but hopefully won't, develop another condition between now and then which has a bigger impact on exclusions/premiums and so you'd carry on the existing policy

Weighty1

Gazelle1985 said:

Weighty1 said:

Gazelle1985 said:

The questionnaire was over the phone and I honestly can't remember how it was wondered - whether it was 'ever' or within a time period. What's typical for this kind of insurace?

The premium was reduced slightly with the exclusions, but still expensive.

Ordinarily it would result in an exclusion if it was within the last 5-years with most providers but within 4-years with Aviva and it's totally standard.  If you were my client I'd have told you before we reached the end to expect the exclusion.

Thanks very much, that's really useful. I don't suppose after 4 or 5 years, insurers will lift the exclusions if the conditions haven't reoccurred though?

not normally, no.  Just like they won't add any exclusions if you developed a new condition after the policy is in force, so it's the same stance either way.  Royal London do offer a "lifestyle review" for certain things, such as ceasing smoking, losing weight and minor conditions such as a twisted ankle which resulted in an ankle exclusion and will reduce premiums and remove exclusions after a certain length of time BUT I'm not sure if they'd do this with mental health disclosures as these are one of the conditions which are most commonly claimed for on income protection policies.

Gazelle1985

Weighty1 said:

Gazelle1985 said:

Weighty1 said:

Gazelle1985 said:

The questionnaire was over the phone and I honestly can't remember how it was wondered - whether it was 'ever' or within a time period. What's typical for this kind of insurace?

The premium was reduced slightly with the exclusions, but still expensive.

Ordinarily it would result in an exclusion if it was within the last 5-years with most providers but within 4-years with Aviva and it's totally standard.  If you were my client I'd have told you before we reached the end to expect the exclusion.

Thanks very much, that's really useful. I don't suppose after 4 or 5 years, insurers will lift the exclusions if the conditions haven't reoccurred though?

not normally, no.  Just like they won't add any exclusions if you developed a new condition after the policy is in force, so it's the same stance either way.  Royal London do offer a "lifestyle review" for certain things, such as ceasing smoking, losing weight and minor conditions such as a twisted ankle which resulted in an ankle exclusion and will reduce premiums and remove exclusions after a certain length of time BUT I'm not sure if they'd do this with mental health disclosures as these are one of the conditions which are most commonly claimed for on income protection policies.

Thank you, that makes sense.