Case Study –Replacing Life Cover After Health Circumstances Changed

The Situation

Clients had existing life insurance policies approaching expiry.

A proposed remortgage would extend the period over which life cover was required, meaning the existing arrangements would no longer provide protection for the full intended mortgage term.

The protection review therefore needed to consider both the new borrowing and the clients’ current circumstances.

The Challenge

Since the original policies had been arranged, the clients’ health circumstances had changed. The new medical disclosures influenced which insurers were likely to be appropriate and how the case could be underwritten. Simply approaching the lowest-cost provider would not necessarily have produced the right outcome. The important first step was to understand how different insurers were likely to assess the medical position before a formal application was made. We carried out medical research on an anonymous basis to assess the underwriting approach across relevant insurers. This allowed us to consider the clients’ ages, health circumstances, disclosed medical history and required policy term before deciding where the case should be positioned. Rather than submitting multiple applications without a clear view of likely underwriting, we were able to approach the market more selectively. An insurer with an appropriate underwriting appetite was identified and the required life cover was secured at standard rates.

The Solution

Protection advice becomes particularly important when circumstances have changed since the original cover was arranged. In this case, the value came from evaluating the medical position first, understanding the underwriting landscape and then building the recommendation around that assessment. Rather than treating insurer selection as a price comparison exercise, we focused on identifying a provider whose underwriting approach aligned more closely with the clients’ circumstances and protection requirement. Protection policies are subject to eligibility, medical underwriting, exclusions and policy terms. Future underwriting decisions cannot be guaranteed.