Most life assurance companies are quite sympathetic towards a history of critical illness within the...
Most life assurance companies are quite sympathetic towards a history of critical illness within the family. However, it is always a good idea to discuss a case in advance with medical underwriters at a life company to give the client a clearer indication of possible ratings, or if a medical is likely to be required.
Because the client's mother was diagnosed with breast cancer before the age of 50, the likely rating would be +50%. This may sound like quite an increase, but may represent just a few extra pounds a month on the premium in exchange for the peace of mind the client will be covered if they get a serious illness.
For example, with Swiss Life, a standard application for a female 32-year old non-smoker for £150,000 critical illness cover over a 25-year term would cost £40.87 per month, the medically-rated premium would be £60.05 a month.
I would recommend the client considers taking out life cover in addition to the critical illness cover because in the event of being diagnosed with a critical illness at any stage in the future, she may find it impossible or prohibitively expensive to obtain life cover.
The cost for accelerated life and critical illness cover (there is only one potential payout) with Swiss Life would be £61.80 a month. This means £150,000 life cover for less than £2 extra a month compared to the pure critical illness quote.
The cost for separate life and critical illness cover with the same provider ' potentially two payouts because the life cover remains in place even if there has been a claim for critical illness ' would be £75.70 a month. Both of these figures already include the 50% medical rating.
It is also worth noting that if there have been two or more relatives diagnosed with cancer, the application would almost certainly be declined outright.
On the positive side, if the client's mother had been diagnosed with cancer after the age of 50 there would be no medical rating at all.
