What to expect during executive income protection underwriting
When you apply for executive income protection, the insurer will ask about your health, the work you do and how much you earn. It uses this information to decide whether it can cover you and on what terms.
For many company directors, that’s all that’s needed. In other cases, the insurer may want some additional medical information before making a decision.
What information will you be asked for?
The application usually covers:
- Your age and occupation.
- Your salary and, where relevant, dividend income.
- Your medical history.
- Current medication.
- Smoking status.
- Hazardous sports or hobbies.
You’ll also be asked about any previous periods of sickness absence, ongoing medical investigations and existing insurance policies.
Answer the questions accurately and give the insurer the information it asks for. The answers form part of the basis on which it offers you cover.
Will you need a medical examination?
Not usually.
Many executive income protection applications can be dealt with without a medical examination.
The insurer may want more information if you’ve disclosed a medical condition, you’re applying for a high level of cover or there is something else it wants to investigate.
This could include:
- A report from your GP.
- A telephone medical interview.
- A nurse screening.
- Routine measurements such as height, weight or blood pressure.
- Occasionally, blood or urine tests.
The insurer will normally arrange any medical evidence it requires, with your permission.
Does your occupation matter?
Yes. Insurers will want to know what your job actually involves, not just your job title.
A company director could spend all day at a desk, or they could be out on building sites doing physical work.
What you do can affect the premium, the terms you’re offered and how the insurer assesses a future claim.
For more information, read our guide to own occupation executive income protection.
What if you have an existing medical condition?
You can still apply for executive income protection if you have an existing medical condition.
Depending on your medical history and the insurer, you could be:
- offered cover on standard terms;
- charged a higher premium;
- offered cover with an exclusion;
- asked to provide further medical information; or
- declined cover.
Insurers don’t all treat medical conditions in the same way. One might add an exclusion or charge more, while another may offer better terms for the same condition.
For more information, read our guide to executive income protection and pre-existing medical conditions.
How long does underwriting take?
A straightforward application can sometimes be dealt with within a few working days.
It will take longer if the insurer needs additional medical information. A GP report, for example, can add several weeks to the process depending on how quickly the information is provided.
If the insurer asks you a further question directly, replying promptly can also help avoid unnecessary delays.
Choosing the right insurer
Insurers don’t all approach underwriting in the same way. This can be particularly noticeable if you have a medical condition, an unusual occupation or income that isn’t made up of a straightforward PAYE salary.
One insurer may offer better terms than another, particularly if you have an existing medical condition or an unusual occupation.
A specialist IFA can approach different insurers on your behalf and compare the terms and premiums they offer.