IBS does not present a risk for life or critical illness (CI) insurance unless there is a serio...
IBS does not present a risk for life or critical illness (CI) insurance unless there is a serious underlying medical disorder. However, if the symptoms and/or mental health problems are bad enough then waiver of premium (WOP), total and permanent disability (TPD) and income protection (IP) may attract an additional rating, exclusion or even declinature.
Inflammatory bowel disease is a perfect example of underwriting on a case-by-case basis. There is a myriad of possible ratings, anywhere from standard rates to an outright decline. This generally means insurers will get a medical report from the GP in the first instance to best assess the patient's current symptoms and history.
Long-term disability is seldom due to gastro intestinal causes but short-term sickness accounts for around one fifth of absences and causes losses to industry of around £2bn per annum. Therefore, the underwriting of WOP, TPD and IP needs to be fairly strict. We are generally looking at a moderate extra (+75/+100%) for mild cases with an exclusion or even a declinature in more severe cases.
For life assurance, ulcerative colitis can be rated anywhere between standard rates for mild cases with no flare-ups for several years to a heavy extra (+250%) for severe cases with a recent flare up. Heavier ratings will usually apply to those making the application at 35 or younger. Clients who have had successful surgical treatment can often be quoted terms after a six-month recovery period, with standard rates after two years.
For CI, ulcerative colitis will also be affected by age (again under 35s will attract higher ratings) severity of symptoms and the date of the last flare up. This can be a decline in moderate to severe cases with a recent attack to standard rates in a mild, inactive case. Surgically treated ratings are much the same as for life.
With Crohn's disease the same 35-year age break applies for life cover. Again, life cover can range from standard rates up to a heavy extra (+250%) depending on severity and date of last attack. CI cover can only be accepted at standard rates with a five-year + history of no attacks and this is rare. A loading or even declinature is more likely. As stated above surgical treatment does not necessarily cure this disease, so the standard rates rule does not apply post-surgery. It all depends on the degree of post-surgery recovery.
In general, a rating of more than 125% life will mean a declinature of all other benefits.
