Insurance advisors LifeSearch advise how to save money when health conditions are excluded from your insurance policy.
Matt Morris of LifeSearch, says: “All the companies who offer premium reductions for major exclusions should be congratulated. It is inevitable that some people who have suffered serious health problems prior to applying for cover may find one or more conditions excluded from their policy and it is very positive to see insurers taking steps to ensure those consumers are treated fairly."
You must remember to check whether the insurer will reduce the premium as recompense and if they refuse, find an insurer that will.
It is not uncommon for one or more illnesses excluded from an insurance policy. It happens in around 15% of critical illness and income protection applications. A condition that has been excluded cannot be claimed on, which reduces the comprehensiveness of the policy, so it makes sense that the premium should also be reduced.
Not every insurer will do this and if exclusions are added to your policy you can pay the same premium as someone without any exclusions. There are some insurers who have taken a stand and agreed to offer reductions.
You should remember that if you take out a policy and a significant exclusion, such as cancer, is added there are insurers who will cut their premium, so there is no need to pay over the odds for a policy that has reduced comprehensiveness.
Insurers that offer premium reductions when exclusions are added:
AXA - cancer, MS
Aviva - mental, spinal
Bupa - cancer, MS, diabetes and/or CVS exclusion
Fortis Life - cancer, MS, mental, spinal
Legal and General - cancer
LV= - cancer
Zurich - cancer, MS
Income protection insurance: News update: 18 January 2010