Press Release
Are you in the life insurer's little black book?
Are you one of the 40% of life insurance policyholders who are on a life insurer's 'dirty book'? If you are paying more for your life insurance than you should be, then you are. Research* shows that for every 100 life insurance applications accepted, 40 of these will end up with hiked up premiums - some as much as 200% - and an entry in an insurer's 'dirty book'.
People who are classed as non-standard risks - that is, someone who the insurers deem as a 'high' risk - are put on to what some insurers call a 'dirty book'. Once on the 'dirty book', a client can expect to see his premiums increase by anything from 50 - 200%. And this, in a lot of cases says David Thomson from BestDealInsurance.co.uk, is "exploitation" of consumers.
David, who is Chief Executive of the specialist insurance website says: "The term 'dirty book' implies sleaze and certainly this could be said of the numerous insurers who are hiking up their clients' life assurance premiums for minor ailments, or because of height and weight issues.
"Even a 100% fit and healthy client with family health-related associations - such as a family member with breast cancer, multiple sclerosis or motor neurone disease - can also face being listed in the 'dirty book' and consequently higher premiums."
David fumes: "A decade ago, not even 20% of life insurance applicants would have received a loading on their premium - and probably for a valid reason such as a pre-existing serious medical health condition. Nowadays, that figure has more than doubled and consumers are getting ripped-off by being overcharged silly premiums for, in most cases, unwarranted reasons."
He explains how four out of ten of us will get a quote for life assurance and apply of it based on the 'screen price' as to what the premiums will be. However, once their application has actually been looked at by an insurer's underwriters, they will find that the price originally quoted was far cheaper than what they are actually now being expected to pay.
David cites an example of a client who was originally quoted a premium £33.00 per month through their own insurance broker. When the client revealed that his father was diagnosed type 2 diabetic at aged 50, the premium went up to £49.00 - an increase of 50%.
Another client who had childhood pneumonia and who is now fit and healthy despite suffering from mild infrequent asthma saw his original premium shoot up by 75%.
BestDealInsurance placed both these cases with different insurers and at standard rates, without any premium loadings.
David explains that there are no across the board rules as to what conditions or family associations insurers can load premiums for, so insurers can bump up premiums as they see fit.
Probably the most shocking case that David has recently come across is the lady who applied for life cover from a leading insurer. On her application she mentioned that she had fainted after returning from a holiday. Routine tests had been done as a matter of course and the client was found to be fit and healthy. However, the insurer refused to insure the lady, suggesting she re-apply in six months. Another insurer accepted her application immediately and at standard rates.
"It beggars belief" says David. "You go with one insurer and he'll whack up your premiums for a tenuously linked family health problem or because you are slightly overweight, yet another will accept you at standard rates."
He urges anyone who is looking to buy life insurance or has an existing policy with a rating to approach an experienced brokerage who knows how each insurer judges a particular health problem or family association. He says:"In most cases, those individuals with loadings on their policy will find that they do not face a loading at all or, at the very least, their current loading would be greatly reduced."
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