Executive income protection and pre-existing medical conditions
Having an existing medical condition doesn’t necessarily stop you from getting executive income protection.
What happens will depend on the condition, your medical history and the insurer you apply to. You could get normal terms, pay a higher premium or have an exclusion added to the policy.
What counts as a pre-existing medical condition?
There isn’t one definition used by every insurer.
You’ll be asked questions about your health when you apply. These can cover current conditions as well as illnesses, injuries or symptoms you’ve had in the past.
You may be asked about:
- current medical conditions;
- previous illnesses or injuries;
- medication you take or have taken;
- hospital treatment or surgery;
- tests and investigations;
- time you have taken off work because of your health; and
- symptoms which are still being investigated.
Answer the questions you’re asked fully and accurately, even if you think an old condition was relatively minor.
Can you still get executive income protection?
Yes, in many cases.
After looking at your medical history, the insurer could offer you:
| Possible outcome | What it means |
|---|---|
| Standard terms | You are offered the insurer’s normal cover and premium. |
| Higher premium | Cover is offered, but at an increased cost. |
| Exclusion | The policy is issued but claims relating to a particular condition may not be covered. |
| Further evidence | The insurer wants more medical information before making a decision. |
| Cover declined or postponed | The insurer is not currently prepared to provide cover. |
Read more in our guide to executive income protection underwriting.
What medical conditions can affect an application?
Your medical history forms part of the application and may include information about:
- back, neck and joint problems;
- anxiety, depression and other mental health conditions;
- diabetes;
- high blood pressure;
- heart conditions;
- asthma and other respiratory problems;
- neurological conditions; and
- previous cancer diagnoses.
The insurer won’t look at the condition in isolation. They’ll also want to know how long ago it was, whether you still have symptoms, what treatment you’ve had and whether it has kept you off work.
What does a medical exclusion mean?
An exclusion means you’re insured, but the policy won’t cover certain claims connected with a particular medical problem.
For example, if you’ve had recurring back problems, the insurer could offer you a policy with a back exclusion.
You would still have income protection for other illnesses and injuries covered by the policy.
Check the actual wording of any exclusion before accepting the policy. An exclusion can be narrower or wider than the name of the medical condition might suggest.
Will you have to pay more?
You may have to pay more, depending on your medical history. A higher premium may be charged, or a particular condition may be excluded from the cover.
The approach varies between insurers, so the terms available from one provider may be different from another.
The premium may also be affected by your age, occupation, the amount of cover, deferred period and length of cover.
For more, read our guide to how much executive income protection costs.
Will the insurer contact your GP?
Not necessarily. Plenty of applications are dealt with using the medical information you provide yourself.
If the insurer needs more detail, it may ask for a GP report or other medical evidence. This is more likely if you’ve had recent treatment, a significant medical problem or something is still being investigated.
Sometimes the insurer will simply ask you some more questions about the condition.
What if the condition was years ago?
How long ago you had the problem can make a difference.
A condition that was treated years ago and hasn’t caused any further symptoms may be viewed differently from one that still requires treatment.
You should still disclose it if the application asks you to. How far back you need to go depends on the question you’re answering.
Can an exclusion be removed later?
An exclusion may not have to stay on the policy permanently. Some insurers will review it if the condition has cleared up and hasn’t caused any further problems.
If this matters to you, check whether the exclusion can be reviewed later and what the insurer would need to see before it is removed.
What if you don’t mention a medical condition?
The medical questions on the application need to be answered accurately.
If relevant information is missing or incorrect, this may affect a later claim and, in some cases, the policy itself.
If you’re unsure what a question is asking, check with the insurer or adviser before answering.
Does your company have access to your medical information?
The company owns and pays for an executive income protection policy, but that doesn’t mean your detailed medical information is handed over to the business.
Your medical information forms part of the insurer’s underwriting process.
This may be particularly relevant where a company is arranging executive income protection for an employee rather than an owner-director.
Getting cover with an existing medical condition
Don’t assume that a previous health problem means you won’t be able to get executive income protection.
What matters is what cover you’re offered, including any exclusions and whether your medical history has affected the premium.
If you’ve had significant health problems, a specialist IFA can approach insurers to find out how they are likely to treat your medical history before you decide which policy to apply for.
For more information on choosing your benefit, read our guide to how much executive income protection you need.