Impaired Life Insurance

An impaired life in the insurance industry is someone who is considered to be outside of ‘normal health’. It is a horrible term and we hate it. Just because you have a medical condition does not mean that you are in anyway impaired. You can live a full and active life even if you have a medical condition.

However, when it comes to insurance our point of view is not always mirrored by the insurance providers. There are many medical conditions that insurance providers view as ‘okay’. This means that whilst you have a certain medical disclosure they do not see it as adversely affecting your health. If you fit within this group then you will be able to arrange insurance at normal/standard terms, the basic premium/terms that the insurer can offer.

For those who have medical conditions that can impact upon life expectancy and ability to work, insurance providers are likely to bundle you into the impaired life category. When this happens your application for insurance will be offered at non-standard/special rates and possibly in rare circumstances declined.

Non-standard terms is not a one size fits all definition. If you are offered insurance at non-standard terms this will typically mean that the policy premium has increased or exclusions have been placed on the cover. Premium increases will generally be in the form of 25%, 50%, 75%, 100%, 150% and 200% depending upon the severity of the condition. Exclusions are client specific based upon your medical disclosures, for example somebody who has recently had diabetes may find that certain insurances exclude claims relating to the condition.

We are regularly contacted by clients who have been declined insurance or given extreme policy terms when they have gone to an insurer direct, spoken with their bank or used a different broker. Insurers and banks are tied to one set of insurance guidelines and rules, as are some brokers, which will mean that you are not given a fair representation of what insurance is actually available to you.

It is important to understand that no two insurers are alike. Where one insurer may decline you for cover, another may be able to offer it at non-standard terms. Insurer A may offer you cover at special terms but with a bit of research you may establish that Insurer B will provide the insurance at normal rates. Knowing which insurer to approach depending upon your individual circumstances can be a complete minefield whether you are Joe Bloggs down the street or a seasoned insurance adviser.

We have developed years of knowledge and understanding of insurance industry quirks when it comes to which insurer looks more favourable on different medical disclosures. We have the facility to approach multiple insurers and do all the donkey work so that you do not have to. Once we have established which insurer is best for you we are then able to arrange the insurance that you need at terms that suit you.