Health exclusions should equal premium cuts

LifeSearch is advising consumers to seek premium reductions when health conditions are excluded from their protection insurance.

The price comparison website estimates that one or more illnesses are excluded in around 15% of critical illness and income protection applications.

In such cases, the extent of the policy is reduced but not necessarily the premium.

According to the firm, not every insurer will reduce costs, although some have now taken a stand and agreed to make premium cuts.

The firm urges consumers to remember that if they take out a policy and a significant exclusion, such as Cancer, is added, there are insurers who will treat them fairly.

LifeSearch senior policy adviser, Matt Morris, says: “If they refuse, speak to an independent adviser who can find you an insurer that will.”

He adds: “Remember that the way to avoid exclusions – other than the general ones, such as war and suicide – in the first place is to take out a policy while you are still healthy. Don’t wait until disaster strikes.”