DH's life insurance premiums

[grumiosmum]

Name changed for this as it's rather personal.

DH has finally got a quote for life insurance to cover the balance of our mortgage for 8 years, until it's due to be paid off.

They are charging 125% premium markup due to high markers for alcohol & cholesterol.

And compared with what I'm paying for the same insurance it's over 3 times more - but I'm 3 years younger & female obviously.

This is the 2nd quote he's had & it's taken 6 months to get it ... does anyone know IF he works on those 2 issues whether in, say a year, he can ask to be checked again and get the premium reduced?

That's if I can persuade him to give up the cheese and wine.

Anyone an expert on Life Insurance premiums?

Short answer is yes, those are both conditions that could be brought within acceptable underwriting limits over time if he makes an effort to make appropriate lifestyle changes.

But chances are he won't do it and the loading will be 150%

Thanks Sunseed, and Saggital you are probably right. He drank 2 cans of Guinness last night (total 3.8 units) even though we are trying to have a no-weeknights rule.
I do most of the cooking so can control what he eats to a certain extent, but with 2 teenage boys there's always unhealthy food in the house. Still, that's probably for a different thread on a different board.

We are looking at whether the life insurance premiums would be better spent reducing the mortgage total, as it's such a large amount.

Are you using a broker or just sourcing quotes directly yourselves?

Changing his diet will only make a small reduction in his cholesterol. He should be on a statin. Has he been to the GP?

Sunseed, our new IFA is recommending the life Insurance provider. This is the 2nd attempt (first quote was also v expensive).

Babdoc, he is going to take the letter from the insurance company to the GP for advice. He does not like the idea of statins. No idea why.

Your IFA should be able to have a conversation with the underwriters to ask them what measures need to change and by how much/over what timescale in order for them to reconsider their rating decision. That should help have a more focused conversation with the GP.

It sounds as though there has been full medical underwriting done already if it's taken so long to get the quotes through.

Sunseed yes, nurse came to house to do various tests & there were various test results demanded from GP, most of which were fine.

He can certainly look for new policy if his health/lifestyle improves but bear in mind he will be older which will result in a higher standard premium.

125% is quite a hefty loading (although not the highest it can be, usually max 400% before the insurer will just decline cover) so his risk profile obviously isn't great.

Re alcohol - do you know if it's just the units per week which is the issue, or is it because he has ever been advised by a GP to reduce his consumption, or sought treatment for alcohol problems? If it's the latter, that's not ever going to go away IYSWIM as applications will usually ask "have you EVER been advised" or "Have you EVER sought treatment" so even reducing his consumption will unlikely get him to ordinary rates as he'd still be rated for those questions.

No, never been advised to cut down. But elevated readings for Gamma GT which is a marker.
We have compromised and decided to insure him for a smaller amount which represents the difference between the mortgage & our savings.
Now I'm going to work on getting him to improve his habits.
I think it's a big red Flag & I think he realises that too, having previously reacted as if they were trying to stitch him up. He understands it's just an algorithm.