Crohn’s Disease life insurance, Critical Illness Cover and income protection
The facts about getting Crohn’s Disease life insurance
The severity and complications of Crohn’s disease can vary widely between patients. This means that policies offered can also change dramatically depending on the severity of your symptoms and medical history. If your condition is considered less severe you should be able to gain cover at a standard rate. If not, gaining appropriate Crohn’s Disease Life Insurance, Critical Illness Cover or an Income Protection policy can become more complex.
What does Crohn’s Disease Life Insurance cost?
If you are currently suffering with Crohn’s Disease and are applying for life insurance, Critical Illness cover or an Income Protection policy, insurers may require additional information regarding your condition. Insurance agents will take the following information into account when assessing your application:
- When were you diagnosed with Crohn’s Disease?
- What medication are you taking to manage your condition?
- Have received or are waiting to receive any surgery on your digestive system?
- Are you currently able to work?
- When was your last attack and how often do you experience symptoms?
If you are currently awaiting any surgery, it is likely that insurers may ask to postpone your application for Crohn’s Disease Life Insurance until have fully recovered.
Your premiums for Crohn’s Disease Life Insurance will also depend on:
- Sum assured (£’s)
- Term of cover (years)
- Type of policy (e.g. Family, Mortgage, Whole of Life etc.)
Crohn’s Disease Life Insurance rates/ratings
Many people who suffer from Crohn’s Disease can obtain cover with standard terms. If your symptoms are more severe an application for Crohn’s Disease Life Insurance, Critical Illness Cover or Income Protection may be considered non-standard cover. If you are offered non-standard cover this means that insurance underwriters have identified additional risks to your application. Terms on high risk life insurance are amended to reflect these risks and rates are offered at higher premiums. These rates can vary dramatically between life insurance companies depending on their underwriting guidelines. Insurance providers will often use a risk based scale to determine the amount your cover will cost and may apply a ‘percentage loading’ or ‘£’s per mille loading’ to your premium.
Percentage (%) loading for Crohns Disease life insurance
If underwriters do identify additional risks, your insurance agent may choose to apply ‘percentage loading’ to your premium. This means your premium will raised in line with the risks and could more than double the monthly cost of your life insurance policy. When deciding how much loading to apply, underwriters will consider your health and lifestyle alongside your medical history. If they decide your risk is above their maximum level of loading your Crohn’s Disease Life Insurance cover will be declined. The level of loading available will differ with each provider meaning you may still be able to obtain a higher rated policy elsewhere (e.g. 300% or 400%).
Per mille loadings for Crohns Disease Life Insurance
‘Per mille loading’ is rarely used and will often only be applied to very severe medical conditions. The amount of ‘Per mille loading’ that would be applied to your cover is entirely dependent on the amount of cover you choose to apply for. For instance, £1 or £2 could be added to your premium per thousand £’s of cover. ‘Per mille loading’ can be quite flexible as it can be applied to Crohn’s Disease Life Insurance policies on a short or full-term basis.
Exclusions for Crohn’s Disease Life Insurance, Critical Illness Cover or Income Protection
It is important to remember when applying for any Crohn’s Disease Life Insurance that insurance agents may include an ‘exclusion’ on your policy. An exclusion would make you unable to claim for any symptoms or medical conditions that are believed to be related to your Crohn’s Disease. This could affect your eligibility for additional benefits such as Total and Permanent Disability, Guaranteed Insurability or Waiver of Premium. If you chose to accept a Crohn’s Disease Life Insurance, Critical Illness Cover, or Income Protection policy with an exclusion it’s important that you are fully aware of what will be covered.
How much cover do I need?
The amount of cover you should apply for is entirely dependent on your financial circumstances. When making any application for Crohn’s Disease Life Insurance you should ensure that you have accounted for all your potential expenses and have a clear idea of the amount you may need. If you are finding this difficult there are some simple rules you can apply to ensure you’re making an informed decision.
During your application for Crohn’s Disease Life Insurance, Critical Illness Cover or Income Protection, it’s important you are aware of any loading or exclusions that may be added to your policy. This will often occur after underwriting and could have an affect on how affordable your life insurance policy may be.
When discussing the amount of cover you may need it is best to consider:
- The amount left to pay on your mortgage.
- Any outstanding debt (e.g. Loans, second charge, credit cards and other)
- Spouse or Partner
- Annual Income (after Tax)
- Any financial assets (e.g. car, house, business etc.)
If you feel unsure or require more information to decide how much Crohn’s Disease Life Insurance you will require to secure your family and home, see our Iam insured life insurance calculator [LINK].
Critical Illness Cover works a little differently than a standard life insurance policy. Critical Illness Cover will provide a tax-free lump sum should you be diagnosed with a critical or serious illness. This money can then be used to help recoup loss of earnings or pay for additional treatment. Many people with of Crohn’s Disease can obtain Critical Illness Cover at standard terms however each application is considered on a case by case basis. This means if your medical condition is more severe you may have an exclusion or pay a higher premium. When considering Critical Illness Cover you should account for:
- Your annual Income (after Tax)
- Mortgage/rental payments (annual)
- Cost of living (annual)
- Any other potential costs (e.g. medical treatment or adaptations)
If you find yourself struggling to decide whether Critical Illness Cover could be right for you feel free to contact one of our specialists. You can contact a member of team by filling out our enquiry form [LINK] or by telephone [TEL].
An Income Protection policy can provide a strong sense of security for people with Crohn’s Disease should they become unable to work. An Income Protection policy is designed to help policy holders deal with loss of income due to severe illness and claims can be made as needed during your policies term. If you are self-employed or have concerns about loss of income, an Income Protection policy can help to provide peace of mind. People who Suffer with Crohn’s Disease and have mild symptoms or have not suffered an attack for a substantial period may be able to obtain an Income Protection policy on standard terms. However, for most people with Crohn’s Disease, Income Protection will require you to agree to an exclusion or pay a higher rated policy. When deciding how much Crohn’s Disease Income Protection you will require, you should closely consider:
- Monthly income (after tax)
- Mortgage/rent payments
- Debts (other)
- Cost of living
Many life insurance companies will consider people who suffer with Crohn’s Disease, but availability and life insurance quotes will vary dramatically between providers. In general, sufferers with less severe cases will have more options available to them but that does not mean cover can not be obtained for people suffering from more acute symptoms.
If you are having trouble finding a Crohn’s Disease Life Insurance policy that works well for you, Iam Insured can help. Our team of experts can assess your medical condition, lifestyle and current health to help you arrange cover that fits your needs and budget.
Although it may be difficult obtaining Critical Illness Cover or Income Protection, it is well worth considering applying. Critical Illness Cover and income protection policies provide immense peace of mind and protect you from worst case scenarios.
If you have previously applied for Crohn’s Disease Critical illness cover or an Income Protection policy and were declined, it may be worth speaking with a specialist insurer. Iam Insured have over 20 years of experience dealing with high risk clients and will be able to help find cover that works for you. For further details or a consultation please contact one our experts using our enquiry form [LINK] or if you by telephone [TEL] if you prefer.
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