When a respiratory disorder is disclosed, the underwriter has several options to assess the conditio...
When a respiratory disorder is disclosed, the underwriter has several options to assess the condition. Point of sale questionnaires are routinely used to obtain as much information as possible from the applicant. Alternatively a report and a supplementary respiratory questionnaire are sent to the GP if the condition appears to be more severe. Finally, underwriters may ask the client to attend a medical examination where the lung function can be assessed.
In addition to the medical evidence obtained, the underwriter will also consider the occupation of the client. Particular attention will be paid to occupations which involve working with air-born allergens such as dust, flour, pollen and occupations which are associated with high levels of stress or an excessive amount of physical activity.
Finally, the smoker status of the proposer is taken into account as it has been proven that smoking has a detrimental affect on lung function and smokers will be treated less favourably. Any of the above factors could aggravate certain conditions or cause them to flare up.
n Asthma ' the underwriter will use the information provided from the proposer and/or the GP to assess the severity of the condition.
For mild asthma, life and critical illness (CI) applicants would be likely to obtain standard rates. Income protection (IP) applicants can expect a deferred period of four weeks and may attract a small rating, while longer deferred periods can be considered at standard rates.
For moderate cases, applicants may still obtain CI at standard rates, however life protection and other disability benefits will require a rating. This can vary depending on the features of the case.
For severe cases, if some features are favourable then terms may be offered for life cover only, but they will be highly rateable. IP and other disability benefits will be declined. The most severe cases may be declined for life cover.
n Bronchitis ' for applicants with a history of acute bronchitis, where a full recovery has been made, terms can be considered at standard rates for all benefits. However, if there is a history of more than one attack per year this should be classified as chronic bronchitis.
In severe cases, life cover if offered will be highly rated. CI and other benefits are likely to be declined. At the reversible stage, life and CI protection may obtain standard rates. IP will be acceptable with a rating and shorter deferred periods attracting higher ratings.
Moderate bronchitis will be rated moderately for life with proposers under 40 viewed less favourably. For CI, small to moderate loadings will apply and IP will be rated heavily if offered, terms available on the longer deferreds only. Life protection may attract a rating for mild bronchitis. CI will usually be acceptable at standard terms. Terms for IP will be available for longer deferred periods only and these will attract a moderate rating.
In all cases cigarette smoking and occupational risks will be considered and additional ratings may be applied accordingly.
