Hi not sure if this is the write place to post. DH has had life insurance since before we got married, mainly to cover the mortgage and bills of anything were to happen to him. Fast forward 5 or so years and we now have a child, a bigger mortgage and he is on a bigger salary etc so we need to update our policy.
Problem is DH had a cancer scare last year. It was luckily one that was easily removed and got it super early, hadn't spread at all and all mri blood tests etc clear. It's not the type that is likely to return. However, the big C is like alarm bells for insurance companies as we are now finding out.
When we initially enquired about the upgrade we were quoted an extra $20 a month (fine) and told DH had to have a blood test. All good. Now the quote came back DOUBLE the original cost, with a clause saying he is not covered for cancer!
We haven't had a chance to drill the insurance company about how they arrived at that figure. In any case we will be shopping around.
My question is, for those that work in insurance or have been in a similar situation, is having had cancer an automatic disqualification to ever being covered for it ever again?
And if they have put a clause in there saying he isn't covered for cancer, why would they still increase the premium so dramatically?
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21-09-2015 13:24 #1
Life insurance & cancer - anyone have experience with this?
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21-09-2015 13:43 #2Senior Member
- Join Date
- Mar 2015
Hi! I work in insurance but not an underwriter or financial adviser. I will firstly just ask if you have spoken to a financial adviser? That would be the the first point of call. They can get preassessments from multiple companies as some are more conservative than others.
I would suggest to keep the amount of cover where it is. Do not move or change. If you want to increase with another company then you can always have separate policies.
Depending on the type of cancer you may find the insurance companies will prefer you to wait for x amount of time to pass before allowing cover OR if they do they will either put on a loading or exclude the particular cancer that your DH had.
With the exclusion depending on what type od cancer/where/the stage it was at will depend on if they offer cover with an exclusion and offer to reassess after x amount of time has passed.
Unfortunately when it comes to insurance they have to offer covers based on almost worst case scenario - there is a lot of research that happens in the background and if it is something that may cause issues in the future (as in according to medical studies) they have to take the conservative approach. Does that help
ETA. Yes. You can put a medical loading and an exclusion on at the same time. Can you see a % somewhere on your quote?
ETA 2. The loading could be due to blood results. But that should be in the explanation. I would get a medical release letter to the company to release the results to your DH or your dr to go through. The same results can possibly be used if you apply for cover elsewhere as part of an application.
Last edited by twinklify; 21-09-2015 at 13:54.
21-09-2015 14:11 #3
Thanks @twinklify that's really helpful stuff. So confusing how it all works! I haven't seen the quote details only spoke to DH about it over phone, he is currently travelling for business so we will sort it when he gets back. I was just shocked at how much more they wanted to charge us more than anything. I wasn't sure if our existing policy is still valid now? We are still paying the premiums for it.
Does his having had cancer affect our existing policy or is it only new ones we take out from now on?
Def will suggest we see a financial adviser asap.
21-09-2015 14:22 #4
Life insurance & cancer - anyone have experience with this?
Have you told your current insurer about the scare?
Sometimes it's hard for them to say whether or not you'll be covered as its a case by case situation when assessed if you were going to claim.
+1 for a financial planner (a really good one!!)
21-09-2015 14:33 #5
If I had got life insurance at 30 there would have been no issues. Since having difficulties having our last child they found a few minor things and if you have ever mentioned the word (postnatal) depression to your doctor that will also affect your policy due to the rates of suicide.
I now have to pay a 75% loading on my policy and was refused for disablement.
You will need to disclose everything with your insurance holder and nothing can be withheld - as they will do a proper investigation post-death or disablement which may void your policy if anything is found.
Tip #1 to other hubbers - get policy young. Or get policy, then mention the 'd' word to your doctor, not before.
I have inquired into getting mine reviewed but I think it involves a whole new assessment and if anything has come up since in your medical records they get to base it on that too!
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Wise Enough (21-09-2015)
21-09-2015 14:48 #6
Yeah I am hoping the policy we took out when DH was in his 20s is still valid.
I don't think we considered getting an additional policy rather than 'upgrading' so providing it's still valid it sounds like that is the way to go.
I will need to look into some for me too. Just hate how much we already spend between house, car, health and life insurance combined. It would be close to 1K per month all up. Dropping back to single income next year will be v challenging between that & the mortgage 😰
21-09-2015 15:14 #7
is this life insurance through your super? if it's through super, your super fund pays the premiums so it's less of an impact on your immediate cash flow.
21-09-2015 15:26 #8Senior Member
- Join Date
- Mar 2015
Getting a top up/additional policy means you keep the old cover with the terms and new terms will be on the new cover. The only time I would suggest replacing your cover is if you can get better terms.
If your DH pays for Disability Income - that can be claimed in his tax return (if it is out of pocket) - also it is sometimes beneficial paying for insirance from super (for some people).
@Little Ted if you review your cover and its worse and you already have a contract you are not required to accept the terms - and it will not affect your current contract.
We have plenty of people reviewing their cover and if what they want reviewed is not improved or worse we say no and thats it - but we do not penalise you on current cover.
The only thing to keep in mind is tests will be out of pocket for you. But if you do them with your dr you can just get the results and send them in yourself.
Also, when it comea to depression etc. Depression is hard. It is actually the thing that is probably claimed on the most (as well as back pain). It is usually an exclusion that can be reviewed after x amount of time if you have no symptoms and are not on current treatment plan.
I hope I have not bombarded with info. The important thing is if you have a good adviser they will know this. Whether it is worth reviewing and getting you a better deal.
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Little Ted (21-09-2015)
21-09-2015 15:49 #9
The super insurance wasn't as good. This is much more comprehensive and for a higher amount, hence the premium.
21-09-2015 18:19 #10
what other insurances have you got besides life? eg: income protection (which you get it you can't work due to disability/illness or injury), trauma etc?
Insurance is so bloody confusing (and expensive).
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