Bill seems to be a standard health risk, however, we need to know more about the mountaineering and ...
Bill seems to be a standard health risk, however, we need to know more about the mountaineering and rock climbing. For example, how high does he climb, is it UK or non-UK based and is he amateur or professional? Rock climbing without mountaineering is much cheaper to insure.
UnumProvident does not provide cover for professional climbers and the sport would be excluded if he chose a four-week deferred period, or if climbing is at heights of greater than 4,000 metres.
UnumProvident can provide full cover for a 13-week deferred period, which would be preferable, so as not to rely on the £5,000 of savings to cover costs during the early stages of incapacity.
Another important consideration is the definition of disability. UnumProvident provides the widest cover based upon inability to perform 'material and substantial duties.' The 'totally unable' definition, offered by many insurers, would be much harder to claim under.
Affordability is an issue as the customer is young with high outgoings. Although review able rates are cheaper, guaranteed premiums mean there are no surprises in the future. Another cost-saving option to consider would be to exclude cover for rock climbing rather than pay the higher premium to include it.
The standard premium to age 65, with a 13-week deferment, is £22.93; with a five-year benefit period this can be reduced to £13.96 or £10.46 with cover to age 50. To include cover for climbing on an amateur basis in the UK up to 4,000 metres would cost £33.87 to age 65 ' with a five-year benefit this would be £24.90. Climbing outside the UK to the same height would cost £39.34 and £30.37 with a five-year benefit period.
