Not only will the needs of each and every client who needs a protection policy differ, but advisers also have to factor in the different underwriting processes of providers...
Aegon UK has put together a list of advisers' ten most frequently asked questions, and offered its answers*.
1. How do you underwrite diabetes?
Decisions can vary from standard rates to decline depending of the duration of the condition, control and any complications. Ratings for Type 1 diabetes will always be higher than for Type 2.
Example: A 49-year-old man who has had type 2 diabetes for four years but keeps it under good control with no complications.
Outcome: Ordinary rates for life cover for a ten year policy term.
2. What is your armed forces philosophy?
Decision will depend on whether the occupation involves any hazardous duties, travel to troubled areas or areas of conflict and their deployment status.
Example: Army - not under orders to go to a war zone. No special duties. £5 per £1,000 sum assured on life for the first two years. Exclude aviation and war risks from CI. Navy/RAF - not under orders to go to a war zone. No special duties. Ordinary rates for life. Exclude aviation and war risks from CI.
3. General question about occupation
Example: Scaffolder - average height worked in excess of 12 metres - £2 per £1,000 sum assured on life. Occupational exclusion on CI.
4. General question about cancer
Type, severity, time since initial treatment ceased.
Example: Breast cancer - stage 1, grade 1, 1.1 - tumour 2cm in size. Initial treatment finished 3.5 yrs ago. Life cover £10 per £1000 sum assured for the first four years only.
5. How do you underwrite raised cholesterol and/or blood pressure?
Ratings will depend on the client's blood pressure and cholesterol control and other cardiovascular risk factors such as BMI and smoking. Factors that will be taken into consideration are control, readings, duration and number of medications.
Example: A 60-year-old female with typical blood pressure readings of 150/90 and cholesterol of 5.5. No other adverse factors.
Outcome: Life/CI £250K - ordinary rates
6. How do you underwrite BMI?
Depends not only on BMI but age, gender, type of cover, family history and any other disclosures.
Example: Female, aged 46, height 5'1, weight 13st. Life and CI £95K. No other adverse factors. Ordinary rates for life and CI.
7. How do you underwrite travel?
Which country (region), location of visit, reason for travel, duration and frequency, Is additional security required?
Example: Egypt - £2 per mile for life cover. Decline all other benefits.
8. How important is family history?
Depends on what condition, age at diagnosis, no. of relatives and what type of cover.
Example: A 40-year-old man who has a clean application but three family members with heart disease diagnosed at age 45, 50 and 55.
Outcome: Ratings applied - Life +75%, CI +100%.
9. How do you underwrite depression (mood disorders)?
Mild cases may be accepted from the application. For moderate cases a tele-interview will be required. For more severe cases a GP questionnaire will be required. Each applicant is judged on their individual history. Terms will vary depending on severity and date of last symptoms. Severity will be measured by duration, time off work, medication, alcohol/substance abuse, suicide attempts.
Example: A client with long term depression on continuous treatment who has reported no significant time off work and no suicide attempts.
Outcome: Rating applied - Life and CI +50%
10. How do you underwrite stroke/TIA heart attack/coronary artery disease/coronary surgery?
Ratings will depend on the client's age, severity, which vessels affected, number of vessels affected and details of any complications.
Example: A 50-year-old man who had a heart attack more than 6-12 months ago, no coronary surgery.
Outcome: Ratings applied - Life +150%, CI decline.
*Any guidance provided by AEGON whether verbal or written (as above) on a pre-submission enquiry is purely a general indication of our underwriting stance on any one particular subject and it should be understood that this is by no means a guarantee of what our final underwriting decision may be. All potential lives assured are underwritten on their own individual merits, in conjunction with our assessment of comprehensive evidence (medical and non medical) where necessary.
