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.

Learning that you have got  cancer is shattering news. At some point during our lives, one in three of us will develop the disease. It is not surprising that PPP observed that of all diseases, cancer causes British people the greatest apprehension even if they have the best life insurance.

At this difficult time you would anticipate an instantaneous pay out by your medical insurers, making it possible for you to think about getting better. Alas you could get a big surprise. Lots of cancer patients make a full recovery thanks to advances in medical science. Nowadays some cases are not even seen as serious, so it is shocking to discover that lots of medical and life insurance plans only settle when your illness is terminal or life threatening.

An independent financial adviser, counsels that people must not assume that they will get a pay out  they have been diagnosed with a serious condition. He counsels people not to focus on the cost alone when taking out an insurance policy, but to examine the Ts and Cs in a private health or critical illness policy to be sure that the company will settle when you really need it. And if you want the best price get online quotes for life insurance.

On the diagnosis of an explicit condition, critical illness cover and life insurance will pay out a lump sum. Whereas, you will receive superior quality and speed of treatment with private health/medical insurance. Such as suitable licensed treatments could be available, which are not dispensed on the National Health Service. A spokesperson of independent advice firm Clicklife says about 17 % of claims fall short on protection policies and at pay out for serious conditions and diseases. On the other hand some cancers sound much more severe than they are and in these cases you more than likely won’t get any money from standard policies.

Formerly insurance companies had an all or nothing approach, but they are now beginning to give policies with a complete or part pay out. An example is PruProtect, an alternative critical illness policy from the Prudential, which connects the amount of the settlement to the severity of the illness and how much hardship it will cause. This policy does not turn out to be void once a claim is made but subsequent pay outs may be lowered significantly. This figure is intensely important when the patient is diagnosed with a stage-one or stage-two cancer, which may become even more severe.

Just lately the insurance industry dealt with the tricky issue of customer non-disclosure. The Association of British Insurers has brokered a new agreement, which will permit claims effected by non-disclosure to get a full or partial settlement, which was not the case before.

Insurance policies might not be influenced at the moment by the arguable matter of genetic testing subsequent to ABI’s suggestions that people should not be asked by insurers for the results of genetic tests for the next 6 years.

Resembling many of Association of British Insurers rulings,  such as expunging the Raising Standards Initiative, it’s not an obligatory code but a voluntary one. Nonetheless it is marvellous news. In fact, only a few of of  Association of British Insurers 400 members are likelyto disregard the suggestions, as it may put their membership of the ABI at peril.

The low consistrency of genetic tests offered at the moment was recognised by the Association of British Insurers. For example, basically because a member of their family died from cancer does not always mean that they will get the disease. However the still approves the test for Huntington’s disease has a dependable guage when underwriting cheap life assurance cover.

With life insurance policies over £450,000, insurers may ask for the results or a genetic test for Huntington’s Disease. However Association of British Insurers indicates that only 4% of all cheapest life cover quotes are underwritten for over 300,000 pounds.

A Parliamentary select committee has uttered doubt about the impact of the genetic testing for Huntington’s and has demanded that the Genetic and Insurance Committee reconsider their evaluation. It is imperative that this moratorium is used to talk about the subject in depth rather than to make it  a reason to disregard genetic testing for the following 4 years. Burying our heads in the sand will just worsen the situation, as progression in medical science will be employed to cultivate much more trustworthy genetic tests within the next four years.

Insurers may then apply genetic tests when underwriting covers, leaving customers with a genetic underclass, who could have  trouble in finding life insurance.

Certain Life insurance companies like the Standard Life, are advising a public/ private solution to answer the problem. They recently employed an all encompassing moratorium on the underwriting of life insurance policies based upon the results of genetic tests. utilising these tests will be expensive so it is only reasonable that the Government should take their share of the burden with insurers.

An unbiased complaints system will be organised by the Association of British Insurers so that the public have sufficient rights if they believe that the insurers have handled them unjustly. At present there is no documentation of how a system of this form would work,nevertheless it needs to deliver solutions, which purely deliver and be completely outside of the insurance industry. The ABI do control the moratorium themselves, which provoke fears regarding whether consumers might obtain an unbiased  hearing. The encouraging statement by the Association of British Insurers will be an empty promise if they don’t.

The Governments Cross party Group have been given a Statement of Concern  46 organisations and individuals have appealed to Parliament to promulgate a law to avert  the use of genetic test results in insurance.

They are concerned that there is no legal guidelines to prevent the use of genetic testing by employers and insurance companies to make judgments about who gets insurance. besides they think that testing is not a reliable or conclusive predictorof a customers future health.

There are also occasions, like purchasing a house, when life insurance might be essential.

Life insurance companies may want to know if you are gay. They will ask you to complete an application document which would require information on whether your partner is in the homosexual category.

The question may not be direct but the company will later on send out an invasive document on the way you live.

It will be wrong not to release information or to give made up details but this will only make your insurance invalid and is subsequently a very bad idea. In addition, this can make substantial difficulties when reapplying to other insurers.

Once the application form has been filled in, you might then be asked to undergo a test to discover wether you are HIV positive. There are no  predetermined rules on testing and life insurance companies are fairly casual in their selection process.
If the test for HIV is positive, it would be hard to buy products associated with life insurance. Just taking the test itself can end in a refusal of cover by some insurers, even if the test is negative.

Even though you pass all the tests and blood tests satisfactorily some companies will nevertheless double or treble your monthly payments. Most insurers will be adamant that they want HIV  testing for homosexual men who apply for income payment protection or critical illness cover even though neither of the policies would pay out for an Human Immunodeficiency Virus (HIV) connected claim.

Robert Lucas, of Carvosso & Co, a financial specialist based in Brighton, says: ‘it’s  distasteful knowing the insurance company can claim rights to some of your blood.” Unsurprisingly the test can be traumatic.

He suggests that you have the test on your own  terms before going to  an insurer. To prevent insurers having entry to parts of your medical records, a few people recommend having drug or STD treatment at private medical centres which are on hand in almost every town or city. The National Aids Helpline or the Melton Aims Trust should be able to help you find the right one.

There is currently an agreement among The ABI  and The British Medical Association (BMA) whereby doctors should not be asked to provide details on Sexually Transmitted Infections and negative HIV  tests. Different proposals will help to make the risk assessment assumed by insurance more up- to- date by guaranteeing that careful sexual behaviour, sooner than sexuality, is the principle.

Although it might be some months before new procedures are fully applied, gay candidates can usually nevertheless get the insurance they want even in the current system. Independent Financial Advisors, specialising in gay finance could generally find inaurance without   testing and on precisely the same terms that are appropriate to gay applicants.

If you are gay and seeking cheap quotes for life insurance, shopping on-line, via MSN, Yahoo or Google could well generate some of the less expensive quotations.

Leon McDuff, a Director of investments at Brighton-based financial adviser 38 Finance Ltd, cautions that it is very irresponsible of people not to have Life Cover and/or Critical Illness Cover as he maintains that life has two potential hazards – either being alive too long and passing away too early.  “Its absolutely vital to have some insurance cover in place – particularly if youve got young children,” he says. “These days you need to build your own little stronghold because nobody else is can do it for you.”

Paul Harris at LifeSearch says now is the ideal time to invest in such plans as there are lots of very cheap premiums around owing to the intense vying for business within the insurance market. “The cost of cheap life insurance has come down – gone down by about 42% in five years. It has never been as cheap,” he states. “The critical illness market paid out on 85% of claims in 2004 – growing from seventy nine per cent  the previous year.”

Make sure you check what insurance cover you have before you take out more.  Do you already have investment policies or does your employment pension fund give you any other insurance?

The simplest way to estimate how much insurance you need is to calculate how much you would need to provide the same level of living over a year and then times it by 24 years.  The minimum amount required should clear all outstanding debts and and leave a decent amount for your dependants.

Obtaining the best deal

When making a decision on your policy it is very necessary to read the guide that most a lot of insurers have of the conditions and illnesses that they include. It will catalog everything and should be very clear and simple to grasp.  You will also need to review the documentation of the main points of the cover which will include all benefits and exclusions.

When someone takes on the responsibility of a homeowner loan they are more often than not advised to take out critical illness insurance cover but should research the market and not just take the first insurance policy suggested.

If you begin paying these premiums when you are younger they are noticeably cheaper, distinctly different to leaving it until you are older, when cover rises quite substantially.

Insurance payments can also be reduced by giving up smoking.  Mary Lakes, head of protection insurance at AxA Insurance says “Giving up smoking can save people a significant amount of money as well as hopefully bringing a longer and better quality of life.”

If you quit smoking you can take off as much as a quarter off life insurance, critical illness  insurance and income protection insurance payments because the facts that we now have proves that smoking can cause severe illness and aggravates any other existing medical conditions.

You may have to change your policy if your circumstances alter.

Under no circumstances imagine that once you have bought your insurance policy that you can just keep on with your life and disregard it. At all times be very aware of the insurance cover you have and ensure that, should your circumstances alter, or, is going to alter your insurance policy must have capacity for these alterations.  Perceivable examples are changing your job, or do you intend to have more children; on a regular basis consider anything that may increase your costs to live and must be to be covered if you are taken ill and are unable to work.

Very little is more distressing in life than to be diagnosed with a serious or chronic condition. Things are made much worse when your insurer informs you that they won’t pay out on your critical illness policy or private health cover for the HIV or cancer you are suffering from .

You are told to peruse sub-clause six of paragraph 325 of the small print, which informs you that you have got the  wrong form of cancer. Only tumours below the hips are covered and only the first six days of your treatment will be paid for, and then it is up to you to find the finance.

This situation may sound ridiculous, although brokers and insurance companies are regulated, this type of procedure continues togo on. It has been a long drawn process to tidy up the industry and to make certain that consumers get a proper deal.

A short time ago Cancer Backup, a registered charity, highlighted this problem by organising a large assortment of  shopping surveys, which exposed some disconcerting facts about the private medical insurance companies. It established that of most of the leading insurance companies only PPP provided cover for cancer patients throughout the length of their illness. Only  the initial treatment is covered by the majority of health insurance policies. Care or treatment over a longperiod, such as hormone replacement or chemotherapy is normally excluded.

While life insurance companies and brokers want to finance long term cover for insurance holders with chronic illnesses, they won’t always make it clear to likely clients, at the time of taking out the policy what they are covered for.

Eeven though both  Cancer Backup and Macmillan Cancer support have been in discussions with comparableestablishments within the industry to lift the standard of sales practices and make the phrasing of insurance documents much clearer, progress has been slow since the report was published two years ago.

Private medical insurance and critical illness cover  is usually taken out by clients who are comparatively hale and hearty. The last thing that crosses their minds is getting cancer. That is why it is so vital to spell out an insurance policy’s exclusions before they sign up.

A statement of best practice for life insurance companies writing and selling medical insurance policies has been revised recently by the  ABI, which is a much needed step in the proper direction.

The market body has now proposed that insurance companies and providers selling these kinds of insurance should orchestrate similar case studies, which explain the situations when a policy will or will not be paid. Regrettably insurance providers no requirement to adhere to this code, which is voluntary.

While the  Association of British Insurers initiative is to be embraced, the best way of explaining a policy is by getting the salesman to explicate the small print.

In addition, industry jargon is in spite of everything even now being used by insurance companies to baffle the consumer. For instance it is wrong to classify cancer as an acute or chronic illness, disputes Cancer Backup. On the other hand insurance companies are insistent that it should go in the acute category. Consumers only learn about this when their claim is rejected.

Although the  Association of British Insurers have got their responsibilities right, the insurance companies can only be required to improve their standards by the regulator. Better training of call centre staff, who sell the majority of the insurance policies, is also long overdue

More thorough marketing procedures are essential with terminology being eliminated. At the end of the day it it is the duty of the insurance companies to ensure that their clients fully comprehend the terms of their policies before they commit themselves.

Summary
Some of the ways in which the insurance industry is tackling the mis-selling of life insurance. The problemslinked to payment protection policies are pointed out.
The mis-selling of life insurance cover by a substantial number of mortgage lenders has to be attended to by the Government. Steps have been taken by the DTI, who have just about concluded their enquiriesinto the tie in of home insurance with mortgages. An announcementbarring the procedure is  Mr Timescarries on that although lenders may not insist on customers taking out life insurance, they can be persuaded that they do not have a choice, through the provider being evasive with the truth.

50 per cent of life cover is sold by mortgageproviders, however it can be bought through independent advisers or direct providers.

However a Department of Trade and Industry spokesman has said that their enquiry continues into a huge range of insurance tie-ins. A lender who met Jack Straw has said that life cover has been looked at in passing , while more importance has been placed on home and contents.

The problem with consumers being forced to buy uncompetitive life cover and home and contents insurance policies is just as significant for both products.

The concerns are especially severe with PPI. About half of all consumers who have been persuaded to take out a  PPI may have been provided with the wrong the wrong kind of policy. In addition the majority of those who purchased one of these debatable insurances expect a lot more than they would actually receive should they not be able to pay their bills.

An extensive investigation has found that around 25 per cent of the population think that they will receive a monthly wage from their PPI policy, rather than understanding the policy would only cover their debts.

A further 20 per cent said they believed the insurance would protect them if they could no longer meet their repayment commitments for any reason, and 7 percent said they thought their medical bills would be paid if they became sick .

Many people thought the insurance would carry on indefinitely to meet their debt repayments, others thought their policy would cover motor car breakdowns and household bills.

Yearly sales of Payment Protection Insurance policies are said to generate premiums of around £5.4bn for the finance industry. However an amazing 4 billion pounds of this is said to be sheer profit. Investigations suggest  that some banks charge up to 500% more than others for a comparable product.

The Office of Fair Trading is studing the sale of PPI following objections from the National Consumer Council and Citizens Advice. It recently pointed out concerns that banks are luring in customers by advertising deceptively cheap loans and then hammering them with massive additional costs by selling pricey Payment Protection Insuranceas part of the deal.

As a consequence, a loan which seems to give good value becomes far more expensive.