I have a client looking to buy life and income protection (IP) cover. My problem is that, although he has indefinite leave to remain in the UK, he is a refugee and has no long-term medical or financial history. What problems are we likely to encounter?
Mark Jones, LV=
When considering life insurance or IP for your client, the cover available will depend on several factors. For instance, if your client discloses an existing medical condition but does not have a long-term medical history in the UK, they could be required to undertake a medical assessment.
IP applicants may need to provide evidence of recent earnings, so depending on how long your client has been employed in the UK, this may or may not be possible to provide.
Before a policy is underwritten, all applicants are also asked whether they have visited countries with a high level of HIV within the past five years and how frequently they travel to such countries. If an applicant has recently visited such a country, an HIV test would be required.
Subject to this test being negative, there would be no impact on their claim. However, if an applicant plans to travel to areas of high conflict, additional premiums could be applied or cover could be declined.
If an insurer is aware that your client has not lived in the UK for a long time, they may ask for evidence that your client intends to reside in the UK permanently. Although each case is decided on its own merits, if your client appears to be putting down roots in the UK – i.e. has obtained a mortgage or is employed in a full-time professional role – insurers could be more likely to provide cover.
If your client intends to move abroad in the future, it is important that they are aware that to receive payouts, many insurers require claimants to have a UK bank account and live in one of the permitted areas, as laid out in their policy.
