But in 2010, 10 years after the client’s first testicle had been removed, Lakey shopped around for better terms from a number of insurers before switching the client to Bupa (whose book was subsequently acquired by Friends Life), which offered standard terms.
Lakey says “He got an identical plan but with no exclusion or premium loading, although the premium reflected that he was five years older. When he got cancer in his remaining testicle he was able to pay off his mortgage and had a bit left over, and he was so grateful for what I’d done that he gave me a case of vintage wine to show his appreciation.”
There is also much to be said for revisiting the policies of those who are standard risks, even if only at three- to five-yearly intervals, to see if their circumstances have changed or their cover can be improved.
LifeSearch’s Emma Thomson says: “It may be worth switching clients even if it costs a little more. In the last 18 months, many insurers’ definitions for heart attacks and strokes have improved, as has children’s cover. Friends Life has introduced cover for children-specific illnesses like muscular dystrophy, cerebral palsy and cystic fibrosis. Friends Life and Aviva have also brought in funeral cover for children.”
(BOX) – Some conditions well worth revisiting after only 12 months
Bad Backs – If an income protection policyholder has an exclusion for a bad back, some insurers will remove this after only 12 months if they have been entirely clear from symptoms. Others may do so if there have been no symptoms for two to five years.
Weight – Protection insurers will often remove loadings incurred by policyholders for being overweight if they can prove they have maintained weight loss for six to 12 months. Underwriters will, however, want to know how quickly and why the weight loss has been achieved, as they will be looking for sustained progress via lifestyle change.
Smoking – Policyholders who have given up cigarettes completely for 12 months should be able to obtain non-smoker rates, which will typically result in a premium reduction of around 50 per cent. But they must also have steered clear of nicotine replacement products, normally including e-cigarettes.
High blood pressure – If someone has recently been diagnosed with raised blood pressure and the medication has resulted in little progress, they might get a premium loading of around 50 per cent. But after 12 months if the condition has clearly been brought under control by medication and lifestyle changes, they could be offered standard rates.
Edmund Tirbutt is a freelance journalist
Key points
Headline rates for life, income protection and critical illness cover policies do not highlight applicants with poor medical histories
