“My life premium has been loaded due to the early death of a close relative who lived a totally different lifestyle to me.”
We hear this a lot – healthy people having to pay more for life assurance because of a death or illness in their family, even when it is not something that they are any more likely to suffer themselves.
Some insurers have started loading premiums by 50% based on a parent being diagnosed with certain illnesses prior to their 65th birthday – regardless of the health of the person looking to be insured.
I recently had the example of a client whose father had smoked from the age of 14. He survived a stroke at the age of 52 and is now over 65. Although his son has never smoked, the initial insurer wanted a 50% loading for our client’s policy due to the father’s medical history.
We reapplied with a different insurer that doesn’t have an automatic loading clause for parents, with great success: the new insurer was only 15p per month higher than the first insurer’s original quotation (before the loading).
We can’t change the fact that some life insurers load premiums in these ways – but you don’t have to accept it. But we can help you to find one who doesn’t, and save you money each month with a smaller premium.
That’s why it’s worth contacting life insurance brokers. We can quickly find the best life assurance for your unique situation.