Being refused life insurance doesn’t mean you have run out…
If you've ever heard the term impaired life, or impaired risk, in relation to life insurance, you might wonder - what does this mean?
More importantly, if you’re classified as impaired by insurers, then you’ll want to know what impact this has on you securing affordable cover.
Impaired risk refers to an applicant who doesn't meet the insurer's standard criteria to obtain the most affordable rate. It’s typically due to:
Impaired, signifies that you're considered a higher risk and therefore more difficult to insure.
However, being labelled impaired doesn't necessarily mean you can't secure suitable life insurance to protect your loved ones.
At Reassured, we have a specialist impaired life insurance team who can help secure cover where you may otherwise have had difficulty.
Read on to find out exactly how being classed as impaired risk can affect your life insurance…
If you’re regarded as impaired, the insurer has decided that because of certain key factors, often health-related, you’re more likely to make a claim.
As a result of being deemed high-risk by the insurer, your premiums will be more expensive compared with a standard applicant.
Therefore, it's more essential than ever to compare quotes to secure the right policy at an affordable deal.
Once cover has been secured, whilst you may be paying slightly more, the terms of the cover won't differ from a standard applicant.
Contact our dedicated team today to arrange life insurance protection.
In recent years, the life insurance market has become more accommodating to impaired applicants.
As a result, not only do many specialist insurers exist, but many mainstream insurers are accepting higher risk applicants.
At Reassured, we work with major insurers, as well as impaired specialists The Exeter, to help secure you the best quote we can offer.
Our award-winning team are trained to understand individual circumstances and determine which of our insurer partners are most likely to accept your application.
We have a specialist team dedicated to finding cover for applicants who may have struggled previously.
In addition, we also work with insurers that specialise in over 50 life insurance - a type of policy designed for people aged 50 - 85 who have poor health.
Over 50 life insurance guarantees acceptance, even if you’re classified as impaired, and there are no medical questions when you apply.
Contact us today to discover your policy options and receive your free quotes.
No. Although a small percentage of applications are declined outright, in the majority of cases being impaired doesn’t mean you’re uninsurable.
As discussed, the modern life insurance market is much more accommodating than it used to be, and provisions for all sorts of circumstances.
Some insurers now specialise in providing impaired life policies and being labelled as impaired doesn’t mean you won’t be able to secure standard cover.
It may mean, however, that it’s more important to shop around and compare quotes in order to find the most competitive deals.
You may also consider over 50 life insurance if you’re in the eligible age bracket, as acceptance is guaranteed regardless of your health and lifestyle.
At Reassured, can help you compare multiple quotes for various policies, at no cost to you.
The main impact being an impaired risk will have on your policy is the amount you pay for your monthly premium.
The amount your premium will be increased by will depend on your personal circumstances and the insurer.
Another potential impact is an insurer may ask more health and lifestyle questions. Others may request access to your medical records.
In certain cases, you may be asked to go for a medical check, in order to satisfy the insurer of your current health.
If you agree to a medical check, then this would be at your local pharmacy or GP, at a time and date that suits you.
Usually, the terms of your cover will not be affected and you will be insured for all the same causes of death as a standard applicant.
There are many reasons why an insurer's underwriters may class you as an impaired risk.
We have broken this down into 4 areas: medical conditions; dangerous occupations; sports professionals and dangerous hobbies.
1) Medical condition
You may be considered impaired if you have a pre-existing medical condition, which could impact your life expectancy and/or your ability to work.
Monthly premiums could increase by 25%, 50%, 75%, 100% or even 150%+, depending on how serious a risk the condition is considered.
Common impaired conditions include:
2) Dangerous occupations
People who work in a job where there's an increased risk of death and/or serious injury, are likely to be classed as impaired too.
This includes those in the armed forces, people who work at height, as well as those that handle heavy machinery.
Common impaired occupations include:
Even if your job is not considered high-risk, but you're self-employed, you could be particularly vulnerable.
This is because you don't enjoy the protection provided by an employer; death in service, company pension, health care, sick pay etc.
3) Sports professionals
Some sporting professionals may also find they're a higher risk in the eyes of the insurance underwriters.
Sports deemed dangerous and where there is statistically a greater chance of serious injury or death include:
4) Dangerous hobbies / Extreme sports
Even if you don't play a sport professionally, your lifestyle can impact your life insurance.
If you regularly enjoy extreme sports, such as snowboarding, it's likely to increase the cost of your premiums.
Commons impaired hobbies include:
The Exeter offer life cover specifically designed for people with chronic or serious health conditions, who may find it difficult to secure standard cover.
Their unique underwriting process provides impaired applicants with a greater chance of securing affordable life insurance. Even if they’ve been declined elsewhere.
You’re unable to apply directly for Exeter life insurance or income protection, so get in touch with our team at Reassured today for your individual quote.
As mentioned, if you’re aged 50 - 85 and you’re classified as impaired by insurers, then you may consider over 50 life insurance.
When applying for this type of cover, you don’t have to disclose any health conditions or certain lifestyle factors that could make you high-risk.
Not all impaired applicants are handled in the same manner.
Different insurers will employ different underwriting criteria, meaning life insurance premiums can vary in cost.
At Reassured, we offer our customers a dedicated impaired team who specialise in finding suitable cover for all non-standard applicants.
We're able to utilise our knowledge and experience to help secure a policy for those who have previously been declined elsewhere.
This is the ideal scenario in which to use our fee-free, no-obligation broker service at Reassured.
Let us compare multiple quotes to help find you the right financial protection to protect your loved ones.
What's more, our broker service is regulated by the Financial Conduct Authority (FCA).
Read our comprehensive article on 9 reasons to use a life insurance broker »
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