Kathryn Knowles discusses the case of David who came to Cura looking for life and critical illness cover
David* had recently moved with his family into their new home and wanted some financial protection in place. David and his wife wanted to know that they would each be financially secure if they fell critically ill, or either/both of them died during the mortgage term. They had a young child and wanted to make sure that she would be looked after, should the worst happen.
David approached us because he has type 1 diabetes and was not sure which insurer would be the best for him. We arranged insurance for both clients, but I am focusing upon David for this piece, as he had the medical history that needed extra consideration in the adviser's research.
There was immediately a number of insurance options that we could look at. Well controlled type 1 diabetes is not something that causes concern for most insurers. Our adviser went through his factfind and established David's HbA1C was slightly on the higher side of ok, but overall his health and symptoms were good. David had not experienced any form of neuropathy, retinopathy or hypos, all of which are big factors in determining which insurers and insurances are a potential for someone with diabetes.
The trickier part was the options for critical illness cover. When it comes to critical illness cover, offerings for personal protection policies are not great for diabetics. There are specialist offerings which were discussed with David, but the key way to get a good quality critical illness contract for someone with diabetes is through group cover options. Unfortunately, David was not in a position with his employer to broach this.
Ultimately, our adviser presented the options that David could have, including a long-term income protection option, and he chose to go ahead with the life insurance only for the time being. David and his wife now have the comfort in knowing that they both have life insurance, and his wife also has critical illness cover, that can be used to repay their mortgage in the event of a successful claim. David now has a decreasing life insurance of £226,000 over 29 years, for £35 per month.
*Details are anonymised
Thursday 12 March
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