In today's video, I talk about our client Mr B who wanted income protection and life insurance. Mr B came to us with a history of depression, bipolar disorder and multiple suicide attempts. Listen to how we hit some stumbling blocks while arranging his cover, but ultimately, how we were able to arrange life insurance and income protection for Mr B.
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Hi, and welcome to the B section of the CuraVision A B C series. So, today I'm going to be talking to you about Mr. B. I'll refer to him, probably, as Barry as I'm chatting. So, Barry came to us because he was going to be setting up a mortgage shortly with his partner, and his primary concern was having income protection, so, something there just in case he was unable to work due to ill health that his income would be replaced.
So, when Barry came to us, he was in his early 30s, his BMI was slightly above the normal range, but nothing that would worry an insurer. He was a smoker, which automatically, within the UK insurance industry, means that his premiums are automatically increased compared to what a non-smoker would pay.
The main reason that he came to speak to us was because he had a history of depression in his teenage years that had been combined with a number of suicide attempts, before he was properly diagnosed with bipolar disorder. Once he'd been diagnosed with bipolar disorder and he started treatments and some medication, his health became much better. His mental health stabilized, and he was now, say, a full-time worker, he was about to get a mortgage, and he had a partner. So he had clear protection needs, and we were obviously a number of years down the line from when those instances had happened.
Now, obviously Barry straight away had wanted income protection, and we knew quite quickly that long-term income protection wouldn't be available at the moment, due to a recent flare-up in regards to some stress that had caused him to have some time off work recently, and also as well, critical illness wouldn't be currently available. They would be, hopefully, in the next 12 months if the insurance industry sort of stays, as we anticipate.
So the intention is that, we have put some policies in place for him now, but in 12 months time, we will review his cover so that we can get those policies in place as he had wanted. We did suggest to Barry that he check with his employer as to whether or not they offer income protection and critical illness in what is known as a group scheme.
Because it is an employer, an employee benefit related scheme, but that wasn't available, but he could've also might have been included, in those if he was eligible for them with his employer, regardless of his medical history. So what we did for Barry, for the short term is we arranged for him a short term income protection policy, which is known as accident and sickness cover.
What's the beauty of these products is that they don't take into account your medical history, when you are accepted for the policy. So it doesn't matter what your health's like, you can be accepted for the policy, but it's very important and we made sure that it was very clear to Barry that any existing medical condition that you do have, will be excluded from the policy claims set for at least the first 12 months.
So, if he takes out the policy and he has time where he's unable to work due to the bipolar or the depression, then he will not be able to make a claim on the policy for those, say for at least the first 12 months. We were also able to arrange for him the decreasing life insurance policy that mirrored his mortgage.
We spoke to an insurer who agreed that the suicide attempts had been more of a knock on effect of not having the proper diagnosis of the bipolar disorder and that now that he was a number of years down the line, having had the treatment and the medication, he was much more, in a sense stabilized. Obviously he'd had that flare up in regards to stress recently at work, but in general his health had obviously stabilized a lot more. His mental health.
So, the insurers have offered that to him, and it was what is known as non-standard terms, or special terms, which means that there was a premium increase placed on the policy. Whilst that may not seem ideal, it's important to realize that with the U.K. life insurance policies, most of them will offer life insurance with potential claims for suicide, after the policy's been in place for 12 months.
So with Barry's history, it is understandable why they would've increased the premium on the policy for that. So, we were able to meet Barry's end goal. So, he got an accident sickness policy that will provide a monthly replacement of income, tax free of £1400 per month, for a monthly premium of £15. The decreasing life insurance we were able to put in place for him of around £150,000 decreasing over 23 years for a monthly premium of around £35 per month.
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