It is not uncommon for consumers to have one or more illnesses excluded from their protection policy. In fact it happens in around 15 per cent of critical illness and income protection applications according to LifeSearch. A condition that has been excluded cannot be claimed on, which in effect reduces the comprehensiveness of the policy, so it makes sense that the premium should also be reduced.
Sadly not every insurer will do this and clients with exclusions added to their policy can find themselves paying the same premiums as someone without any exclusions. However, there are some insurers who have taken a stand and agreed to offer reductions.
Commenting, Matt Morris, LifeSearch senior policy adviser, said: “All the companies who offer premiums 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.
“Consumers must remember to check whether the insurer will reduce the premium as recompense and if they refuse, speak to an independent adviser who can find you an insurer that will. Remember that the way to avoid exclusions – other than the general ones, such as war and suicide – in the first place is to take out a policy while you are still healthy. Don’t wait until disaster strikes.”