What is Impaired Life Insurance?
The likelihood of many people being aware of the term impaired life, or impaired risk is quite low. However, it impacts more protection policy applications than you may think. But what does this term mean?
More importantly, if your application for Life Cover classified as impaired. You will want to find out how it will potentially impact your ability to securing affordable Life Insurance protection. The term Impaired risk refers to an individual who does not meet the standard criteria set by each insurer. Which will mean a slight variation in the monthly premium amount available.
Being advised that your policy could be defined as an impaired risk. Does not mean that you can’t get affordable Life Cover. At Life Insurance Cover, our specialist team of advisors can help you to find the best Life Insurance for you and your family.
In today’s guide:
We take a look at how you could be classed as an impaired risk. Including how it can affect your Life Insurance.
Impaired Risk Life Insurance
If your application for a protection policy has been defined as impaired, the insurer has decided that because of rating factors which are often health related. Which could mean that you could be more likely to make a claim against a policy. Because you have being deemed a higher risk to the insurer, your premiums will be more expensive when compared with a standard policy.
Not all insurers will rate impairments in the same way and it is essential to compare quotes from all the providers to secure the best deal for you and your loved ones.
Once you have chosen the right level of protection, whilst you may be paying slightly more than a standard policy. The terms of the cover will remain the same for the length of the policy and will not differ from a standard application.
Impaired life Insurance Providers
Over the last 10 years, all Life Insurance providers have become better at understanding the individual needs of impaired applicants. Because of the increased understanding of medical conditions, not only do many specialist insurers exist. But many of the mainstream insurers are also now accepting higher risk applicants.
At Life Insurance Cover, we work with all of the UK Life Insurance companies, which includes impaired specialist providers like The Exeter, to help you to find the best quote for you.
Our team are trained to understand each person’s individual circumstances. Helping you to find a policy to protect the future. Because our team has many years of experience in finding the best protection possible. They are able to find cover for people who may have struggled to find Life Cover previously.
Will This Mean You Can’t Get Life Insurance?
Not at all, there are a small percentage of applications who will be declined for protection due to the severity of their impairment. The vast majority of people who have been defined as impaired have been protected by Life Cover. By having an impairment does not mean that you are uninsurable.
Because of the ongoing improvements in the Life Insurance market it is becoming more accommodating every year. Which includes improved policies and the protection for people with different types of circumstances. Some providers now have specialist schemes for providing impaired life policies. Being defined as having an impaired policy or quote does not mean that you cannot get adequate protection.
It will mean that you will need to either do some searching to find and compare quotes in order to find the best policy for you. Or you could choose to use an FCA regulated broker, like Life Insurance Cover. We can do all of the searching for you, at no cost to you.
How Does Being Impaired Impact Your Policy?
Of the many policies provided by Life Insurance Cover, we have found that the largest impact to an impaired policy is the monthly premium cost. Another key point to remember which could impact your policy is further information may be required relating to your health and lifestyle.
In some applications for protection, you may be asked to attend a brief medical exam, this is a standard practice to confirm your current health. Many insurers request information about your health, lifestyle and family medical history. This is to make sure that an insurer is able to offer the best protection possible to you.
How Are You An Impaired Risk?
There are a wide variety of reasons why each insurer may choose to deem an individual as an impaired risk for Life Cover. Each insurers standard cover requirements are different to each other, so it is important to understand the four main areas for impairment.
The four key areas include:
This is the largest group for impairment policies, this is because as we all grow older the likelihood of a long term medical condition increases. If you have an ongoing condition prior to applying for Life Insurance. It may be considered as a pre-existing medical condition. An insurer will ask for further medical information to confirm if your condition impacts your life expectancy or your ability to work.
As detailed within our recent post for people having family history of health problems, drinking, smokers or the clinically obese will also potentially be placed into the impaired policy category.
Depending on the potential severity of a condition could mean an increase in your monthly premiums or the need for a specialist policy.
Common Impaired Conditions Include:
Dangerous Job Types
During the application process for Life Cover, you will be asked what your occupation is. People who work in a job where there’s a significant risk of death and/or serious injury. Are likely to be deemed to be impaired.
These occupations include the armed forces, people who work at height, as well as those that handle heavy machinery.
Most Common Impaired Jobs Include:
- Armed services
- Police service
- Fire service
- Offshore workers
- Prison officer
- Security guard
- Airline pilot
- HGV driver
If you are self-employed, you will be deemed as financially vulnerable even if your job type is low risk. This is due to the level of protection offered by employers including death in service, company pension, health care or sick pay.
Professional Sports People
Some professional sports are deemed as potentially high risk. which can mean that individuals that choose to participate will be deemed to be impaired.
Some sports are deemed to be dangerous and where there is statistically a greater chance of serious injury or death include:
- Equestrian sports
Dangerous Hobbies, Pastimes, Extreme Sports
Even if you choose not to play a sport professionally, your lifestyle choices can impact your Life Insurance. If you regularly choose to enjoy a dangerous hobby or extreme sport, such as snowboarding, it’ is extremely likely to increase the cost of your monthly premiums.
Most Common Impaired Hobbies Include:
- Scuba diving
- Rock climbing
- Bungee jumping
Exeter Life Insurance
The Exeter Insurance company offer life cover specifically designed for people who have chronic or serious medical conditions. Who may find it difficult to secure standard cover with other insurers.
Due to their unique underwriting process and understanding of individuals circumstances. They are able to provide impaired applicants with a greater chance of obtaining affordable Life Insurance.
The Exeter Have Two Different Types Of Policy:
This policy type is for people with a high BMI, or for people who have been diagnosed with Type 2 Diabetes.
The Exeter Manage Life policy can have reduced monthly premiums by losing weight and achieving goals set by the insurer.
Also this policy type will work exactly the same as a standard policy. Which makes a claim payment to your family and loved ones after you pass away.
This policy type is available as a Level or Decreasing term based Life Cover. It also follows the standard procedure of making a claim payment to your loved ones after you pass away.
You’re unable to apply directly for Exeter Life Insurance, so get in touch with our team at Life Insurance Cover today for your individual quote.
Use A Broker To Compare Quotes & Secure The Right Policy
This is the ideal scenario in which to use our fee-free, no-obligation broker service at Life Insurance Cover. Allow us to search the market on your behalf, finding you the best possible policy quotes, to compare. Remember, many comparison websites don’t show you the whole wide range of insurers available. Our service is regulated by the Financial Conduct Authority (FCA).
Read our in-depth article on 10 reasons to use a Life Insurance Broker and how it can benefit you.