Bespoke Life Insurance for Diabetics

Bespoke Life Insurance for Diabetics

 

When Mr and Mrs X’s existing Life Insurance policy was coming to an end, Mrs X decided to call MIAB’s Specialist Insurance Adviser, Paula Storey, to see what options she could offer for her husband who had been diagnosed with Type 2 diabetes since taking out their previous policy.

They are planning to move home, and as Mr X is the main earner, Mrs X wanted to check he could get Life Insurance.

Most insurers are able to offer insurance to people with Type 1 or Type 2 diabetes. However, because of the increased health risks for diabetics, insurers usually require a copy of the insured’s medical records before confirming a price for cover. Because of this, there may be a lengthy waiting period, and for those looking for a more straightforward quote - like Mrs X - this could be a deterrent.

Royal London have designed a Life Insurance policy specific for diabetics. Paula advised Mrs X of this, who was happy to answer a short set of questions specific to her husband’s diabetes and associated conditions.

Paula was able to give Mrs X an instant quote of £95 per month. One of the features of the Royal London Diabetes Life Cover* policy is that they annually request your HBA1C reading. If this is lower than the previous year, the premium could reduce. If this is higher - even if it goes above the reading that was provided at application stage - the premium will increase (but it will never go higher than the original quoted price).

Diabetes Life Cover is offered only as ‘level cover’, meaning you are covered for the same amount during the policy term, providing financial security should your health deteriorate to the point where you could not obtain any more cover.

With a medically underwritten plan, you are never sure of how much cover would cost until it has been fully underwritten. You are left waiting for a confirmed premium, sometimes for weeks or months, depending on how quickly your GP Practice responds to the insurer’s questions.

The insurer will then offer two possible outcomes;

  1. An increase in the quoted premium ranging from 100%-400%** depending on the medical information obtained from your GP.
  2. Cover could be declined. Depending on factors such as your HBA1C reading combined with a higher than normal BMI, you may be considered too high a risk by the insurer.

When undergoing the quoting process for Mr X, Paula compared Royal London’s quote with another insurer. A quote was sourced at £28 per month - a more competitive price - though upon speaking to the underwriter, it came to light that because of Mr X’s HBA1C and BMI readings, they would decline cover because of the increased risks. A good example of why considering an insurer that caters specifically to those with diabetes first is worthwhile.

Mrs X was happy with the premium from Royal London, meaning that when they have found their new home they have the comfort of knowing Mr X can obtain Life Insurance cover.

Paula believes this new product from Royal London is a great solution for diabetics needing Life Insurance. It provides a good level of cover, taking on board your specific needs without the lengthy waiting period, giving valuable peace of mind to you and your family.

If you would like to speak to Paula directly about protecting your family and assets, please get in touch with her on 01438 730211, or email paula.storey@miab.co.uk.

*MIAB are a registered broker for Royal London with access to this specialist product.

** based on information gained from underwriters at various insurers.