Risk Clinic: impaired health protection cover

In addition to all these considerations and options, there will be a number of specialist treatment centres that the client could be sent to. In those he will find more options for private treatment.

He will also be provided with further advice on his condition and health that could help him manage it better.

Colin Boxall, AVDO Group

As an individual with impaired health, insurers will shy away. But as viral heart conditions can have a good longer-term prognosis and can leave no lasting tissue damage there may be options available in the future.

For example, individual PMI with moratorium underwriting will exclude related heart claims. It will offer cover now for unrelated and new conditions with the possibility, after a future two-year treatment-free period, of including future heart claims.

If cover is needed immediately, insuring on a group basis offers options depending how much the employer is prepared to support the client and other employees. Depending on employees covered, collective underwriting can allow the inclusion of past and current condsitions.

It can, however, come at a price. Initial costs can be reasonable but future pricing is dependent on claims. With group risk, a freecover limit may not give all the cover required but is available. PMI can also cover past conditions depending on the number of employees included and may include a premium loading.

Although these arrangements can produce results for the individual and valuable staff benefits for other employees, the arrangements have to be viewed longer term for potential pitfalls.

PMI will not only cover past conditions for the client but also all other employees.
Although start-up costs may be considered reasonable, future premiums will be driven by claims.

Allowing past and current conditions to be included for all could spiral future costs.