Income Protection help please

ladybirdirl

Afternoon all,

I have a question please

I recently attempted to start an income protection policy with one of the main providers.

I do have a chronic illness but I work full time & miss little work. I disclosed all of this on the medical questionnaires.


Today I rang the broker & she informed me that she had received a 'preliminary' decline note & had sent it back to the underwriters for further consideration.

I'm furious at this tbh, I noted everything on the form, do not miss too much work & gave a year's deferral period(prior to claim kicking in) & no disability to working,driving etc due to the illness

My questions are


1. Can the company decline without getting any info from GP/spcialists etc

2. Is this market like the car market, where the company must quote?

3. Is this something I should be sending to the financial ombudsman?


Ladybird

BankMan

Effectively insurance companies can cover or decline cover to anyone they choose. They cannot be obliged to put you "on-risk" if they don't want to. Having said that, try another insurer - they don't all operate the same rules.

kaiser sauze

1 - Yes

2 - No, however an agent will likely have given you a quote in the beginning. These quotes are dependent on underwriters accepting the proposal.

3 - No


I would be surprised if you got cover with a chronic illness.

ladybirdirl

Thanks for the advice guys!!

Grr makes me cross:mad:

broker2008

Income Protection is underwritten in a different way to specified illness cover(serious/critical illness) and life cover. It is possible to get turned down for income protection, charged a higher premium for SIC and normal premium for life cover.

Drumpot

ladybirdirl wrote: »

Thanks for the advice guys!!

Grr makes me cross:mad:

Did you consider putting in an application form for Income protection with a differant company?

Being turned down by one company does not mean you will definantly be turned down by another.

I have dealt with cases (crit Ill, Income protection) whereby a client was declined cover with one company, when I took their details to another company they were accepted (but loaded).

Always worth looking at other companies, as they each have similar but differant criteria on who they will accept. Each Assurance company has to abide by certain rules agreed with their re-insurers. So as far as you are concerned, one company may think you are not worth the risk, whereas another company may believe that you are a good candidate for cover. think of it like Mortgage companies who will only accept first time buyers etc . .