Life Insurance for the disabled

Wizzy75

Hi my sister in law suffers from Myotonic dystrophy and is having difficulty finding a life insurance policy due to her disability. Does anybody have any advice as , 1.I would have thought that this is discrimination, 2.Where can she find help with this. I am disabled but I found life insurance, but as she has a long term genetic disorder it seems to be more challenging for her. Any advice would be appreciated.

chiarieds

Hi @Wizzy75 - it seems like it might be an idea to discuss this with an insurance broker. There's a little info here, if you scroll down to 'Life Insurance:' https://www.moneyadviceservice.org.uk/en/articles/buying-insurance-if-youre-ill-or-disabled

& some info from one broker: https://www.insurancehero.org.uk/faqs/life-insurance-for-disabled-individuals.html

Perhaps others will suggest brokers they've used, or where they were able to get life insurance from.

Chloe_Scope

Hi @Wizzy75, is this something you are still struggling to find?

66Mustang

Sorry for the thread hijack but aren’t insurance companies exempt from some discrimination laws? Just wondering as their whole business model revolves around charging people different amounts based on their age, gender, disability status, etc.

Not saying whether I agree or disagree but discriminating between different types of people seems to be part of the game with insurance.

Tori_Scope

The Equality and Human Rights Commission states that:

In general, an insurance provider must not discriminate against a person because of a protected characteristic in relation to providing them with insurance products or in the terms of the products themselves, for example, premiums and benefits.

Some exceptions may apply to disability, sex, gender reassignment and pregnancy and maternity. No exceptions apply to the other protected characteristics: race, religion or belief, and sexual orientation.

Providers of ‘insurance business’ can only justify treating disabled people (including people with a past disability) differently when providing them with insurance if:

• the different treatment is by reference to relevant information from a source on which it is reasonable for you to rely, and

• it is reasonable for you to treat the person differently.

This means it is important to have relevant information from a reliable source when making decisions about offering insurance services to a disabled person. Using untested assumptions, stereotypes or generalisations can lead to unlawful discrimination.

Interesting stuff! I don't know how it works in practice, though @66Mustang.

66Mustang

That is very interesting, thank you @Tori_Scope

I agree it does look like a very grey area and I guess insurance companies have to have some very good lawyers to help them decide what they can and can’t do!

chiarieds

Hi @66Mustang - whilst insurance providers aren't supposed to discriminate against disabled people, they are allowed to charge more in some cases. My daughter is a travel agent, &, where a customer has an ongoing health issue, then the cost of holiday insurance costs more, as they are potentially more likely to need treatment if going abroad & falling ill.

I suppose insurance companies make money because the balance of probabilities is that often a person won't make a claim for a long time, thinking about life insurance if the person doesn't have a life-limiting disorder, or won't become ill when abroad; won't have their house burn down, etc. When the risks are considered higher with those that have certain disabilities, then they charge more to cover themselves. Not 'exactly' discriminating, but built on the model that they will charge less to those at less risk, & more to those considered to be higher risk. Hope that makes sense.

woodbine

When my life insurance ran out I took out an over 50's plan, no questions asked and a £100 gift voucher that covered the first 2 years of payments

Tori_Scope

Sounds like a good deal @woodbine!

Parrot123

Sunlife if you are over 50 i took one out last year and got £100 gift voucher

SheffieldBloke1976

I've looked into life insurance even though I'm only in my 40s, but I've been told that because of my various disabilities and health conditions the premiums would financially cripple me and also that no reputable company would touch a guy like me with a 10 foot Bargepole.