Pre-existing conditions that you have before taking out the plans will not be treated on a new plan.
Private Medical Insurance is there to provide quicker access to treatment for acute medical conditions. The appointments will be often quicker and therefore if you have an underlying condition, this may be diagnosed quickly.
You may also have quicker access to various hospitals, consultants and treatment that may be difficult with the often long NHS waiting lists.
Many consumers have struggled to claim on policies such as wedding and travel insurance as a result of the Covid 19 pandemic, no similar issues have been reported in the life insurance industry.
In fact, data from the Association of British Insurers (ABI) shows that during the height of the COVID-19 crisis, insurers received 7,000 life insurance claims and paid out £90 million – the equivalent of £980,000 every day – to support the families of those who died due to coronavirus.
The age is 18 to buy a plan, the maximum age is the day before 60th birthday to buy a plan.
Life insurance policies is always cheaper in annual premiums the younger you are when you buy the policy. Also if your health is good it will also translates to lower insurance costs and buying a policy younger also lowers the chances of having an illness like diabetes or heart disease.
Some conditions are genetic and can run in families, e.g. diabetes or certain cancers. If the insurer deems you a high risk for the condition they may request a medical screening or they may add on exclusions or raise the monthly premium.
It’s very important that you are sure about the family member, the exact name of the condition and when they were diagnosed, otherwise you may have an incorrect outcome to your application.
As with any insurance policy, if you do not disclose all information required, you may not receive a payout.
If you have decided to take out life insurance plan to provide a lump sum or a regular income to your loved ones when you die, there is usually no income or capital gains tax to pay on the proceeds of the policy.
The payout is not subject to any taxes but if you have any Inheritance or if the payout forms part of your estate it may be beneficial to place your policy in trust. Before you do this, you need to speak to an adviser.
This depends on the type of insurance you’ve taken out. For example if you are covering your mortgage then the amount will decrease in line with the amount with the loan. The monthly premium you pay will be the same each month.
If you have opted for RPI your premium and amount paid out will be in line with this each year. Please note that some insurers will only offer this for the first few years and if you decline it each year, it will no longer be available for you.
Sometimes these types of policies are not that much more expensive than having one joint policy. If you both pass away it would mean that your beneficiaries would have more of a payout.
A joint policy would end as soon as one of you die and if you had two separate policies and one of you is still alive it will continue until the end of the policy or on death.
It is important to note that everyone’s financial situation is different and it may be that these are is more suited to your circumstances and budget.