5 years ago when Elliot Moores was informed that he had a brain tumour, life was never going to be the same again but following a traumatic operation his recuperation has been excellect. Yet Elliot lives with the knowledge that the tumour could re-appear at any time during the next 5 to 10 years. He will also take pills to reduce his epilepsy for the rest of his life.
Mr Moores, who is now forty one, believes he is the most “fortunate man alive” to be still living. Although he is unable to get life insurance cover.
Mr Moores and his partner have a 4 year old son, Jack, and the previous year they moved from Brighton to Woolaton in Nottinghamshire. The family remortgaged 80,000 pounds with the Nation Wide but James was unable to cover the debt with life insurance of his own.
“The Halifax’s underwriters refused to give me a quote for better life insurance. Jane has critical illness insurance and life assurance cover for the whole mortgage,” he says.
The probability of getting online life insurance cover are notably doubtful if an application is made in the first two years of having been inflicted with a nasty type of cancer or having had a heart attack. If the patient is lucky enough to make a full recovery within a set period of time, usually up to four years, insurance companies will consider insuring them again but might place a “loading” on to the premium. In most instances this might be as much as six times the rates that other people pay.
During the first four years subsequent to an operation, someboby in Mr Moore’s circumstances would be refused cover. After this period, life assurance cover should be accessible “though at a very costly premium”.
The life assurance company which underwrites for high-risk people (those who play hazardous sports or with severe medical problems is the Special Risks Services. It professes to have a victory rate of 70% when putting its customers with insurers. SRS confirmed that it will be at least another year before they may be able contemplate an application from Mr Moores.
Premiums would inevitably be excessive because of his epilepsy and because there would still be an increased mortality risk compared to the general population. Unless a policy purposely excluded cancers, Mr Moores would almost certainly be refused any critical illness insurance cover.
Thus as a result of independent financial advice, the Moores family has saved up six months’ emergency money, effectively a self-insurance policy.
And there is a little good news for James. Britannia, his previous mortgage lender, has allowed him to retain 55,000 pounds of life life assurance cover from an existing policy – although at a cost of forty five pounds a month. This is called a Guaranteed Insurability Option and means the insurance company will permit the insured up to 1/2 of the initial amount assured without underwriting.
It is not just serious medical conditions that can impact on life cover. Jason Meers, director of Malvern sports Club had his initial application declined because of a minor skin irritation. A large number of trips to consultants and no end of telephone calls to Scot Prov they finally sorted things out. Mr Meer’s advice to anyone in the same situation is to make an application first and prop it up with a full copy of your medical notes.