Life Insurance might seem like a modern invention – like a lightbulb moment that could have happened in the last century given the rise of corporate banking and massive financial companies.
It actually goes back centuries – the first Life Insurance policies were taken out in the early 18th century and the first company to offer Life Insurance was founded in London in 1706.
It was called the Amicable Society for a Perpetual Assurance Office, which is long-winded but pretty brilliant. Who wouldn’t trust an ‘Amicable Society’ with their ‘Perpetual Assurance’?
Given that was London in the 1700s, modern Life Insurance probably comes with a lot less moustache twirling and tricorn hats.
Life Insurance, as a business, has been developing for centuries – so the vast majority of people can usually get some cover. Here’s what you need to know if you think you’re ‘uninsurable’.
Look, Life Insurance is a business. Insurance companies are turning over serious profit – ultimately, they’re not in the business of declining people for no good reason. If you’re reasonably healthy, your application should sail through and you can start amicably paying for your perpetual assurance.
However, insurers (and the banks too) sometimes turn people down. The reasons usually fall into the following categories:
Life Insurance claims aren’t turned down that often – and when they are, there’s usually a reason for it. Knowing the reason gives you extra information to either make lifestyle changes or health changes (for example waiting for your medication to work and then reapplying).
Okay, so if you get a letter of decline, you might be tempted to go full Homer Simpson and run on the spot, panicking, and flailing your limbs.
Don’t do that.
I mean, you can – but keep it short and be prepared to hustle again afterwards.
As I said above, you’ll usually be declined for one of a handful of reasons. You can request more information from the insurer as to why.
It may be a case that you can reapply in six months’ time with an updated medical history. If you’ve applied through your bank or to one insurer, widen the net by working with a broker – especially a broker who has worked with ‘tougher’ cases.
Each of the insurers has its own set of underwriting guidelines, so they’ll all treat medical issues differently. A specialist can match you with the right insurer for your condition, giving you a better chance of cover.
If you’re actually uninsurable, you may have the chance to go in on a workplace insurance policy, which could keep you covered until your health improves.
If you take one thing away from this blog post let it be this: your situation probably isn’t as bad as you think it is.
I work with people all the time who have chronic illnesses. It’s our speciality at Lion. A lot of the people I talk to have convinced themselves that they haven’t a hope of getting Life Insurance and that their family will be left in awful financial difficulty if they pass away.
It’s just not true.
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