Impaired Life Insurance

Life insurance is usually termed as impaired when there is a higher risk to the underwriter than a 'standard application'.

There are several reasons why an application may be impaired for a number of reasons, including:

  • Pre-existing medical conditions
  • Hazardous occupations
  • Professional sports
  • Extreme sports
  • High risk hobbies/pass times

The insurance company will consider the risk involved and your application could be categorised as impaired with various elements and levels of risk.

The insurer classifies the level of risk and applies a rating or increase in premium which accounts for that.

Why is my premium more than that of a standard application?

  • Your premium going up may be due to multiple reasons; the difference is going to vary dependent on the insurance company.
  • Say an individual with type 2 diabetes applies to two insurers for diabetes life insurance and gives them both the same details.
  • Company 1ís premium is £30 monthly
  • Company 2ís premium is £37 per month

The reason for this difference could be that Company 1 has lower underwriting limits for diabetes life Insurance than the other company.

This could be as a result of various factors like claims history, re-insurer terms or underwriting guidelines. Numerous factors are taken into account when underwriting a life insurance application, for example, the seriousness of a medical condition, how frequently the individual is placed at risk and how great the risk by way of occupation or sport.

How do I know which insurer is the cheapest?

It is not easy to work out which insurer offers the best premium for an individual's specific circumstances without precise knowledge of how every insurance company's underwriting works.

Which types of insurance are categorised as 'impaired'?

There are numerous reasons why an application may be classified as impaired. They can be split into certain key categories; specific examples of pre-existing medical conditions are:

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