The changing shape of insurance in later life

Originally posted on CMJ Insurance brokers.

Lifestyles are changing as life expectancy increases, and many individuals are acquiring higher value possessions. Living longer equals longer retirement, giving more opportunity to travel.

Claims increase as the years increase!

Insurers take age into account when pricing an insurance product, as there is statistical evidence of a link between age and the likelihood of a claim. As we grow older we tend to acquire more of those costly but small items that are easy to lose – such as expensive spectacles and hearing aids – and insurers factor this into their calculations. Beware of exclusions that may apply to standard insurance once you reach a certain age – be it for home, contents, motor or travel.

Specialist travel insurance

Statistics show that the average travel insurance claim is around four times greater for people aged between 86 and 90 than for those aged between 31 and 35. Little wonder that we find our premiums increasing over time.

Getting the correct insurance in later life is crucial, as people in this age group are naturally more likely to have issues such as pre-existing medical conditions. A number of insurers are looking at the ageing population and adopting different approaches for looking after clients who wish to travel.

Cruises are naturally popular with older generations. Some travel insurers include cruise cover on their policies, while others charge extra. Be sure to ask your insurer or broker about cover for excursions as this is often an additional benefit that has to be purchased. It is unusual to find a policy without exclusions. Chubb Masterpiece and Signature policies have no exclusions as long as your GP agrees you are fit to travel. These policies are only available via a broker.

Duty of care

Financial Conduct Authority (FCA) rules state that insurance brokers have a duty of care to be aware of the possible vulnerability of older or impaired individuals. However, buying insurance online or in some cases by phone does not involve receiving advice; therefore the FCA ‘duty of care’ would not apply.

Disclosure

It is important to note that you need to disclose all medical conditions when obtaining an insurance quotation. For example, a CMJ client recently thought that as he had been signed off by his oncologist, he no longer needed to declare cancer, even though this was a fairly recent event. This omission would have put him at risk of cover being excluded by an insurer, based on non-disclosure of a medical condition.

Hand holding

Providing the right cover is vital, but CMJ Insurance Brokers also believe that giving assistance when clients need it most is equally important. This is something that you will probably not get from a direct insurance provider.

CMJ call it ‘hand holding’ and make every effort to deal with their clients face-to-face. This is particularly valuable in the event of a claim, when they make sure they are actively involved in the process, rather than leaving clients to liaise directly with insurers and loss adjusters.

Insurance documents can appear complicated and it is easy to overlook the small print. CMJ highlight vital details such as exclusions and limitations, and will advise you according to your individual needs.

You get what you pay for

Don’t forget when you’re making decisions about insurance, price matching does not necessarily mean matching cover. An insurance broker will guide you and highlight any possible pitfalls so that you get the cover you expect.

The insurance market is very competitive, giving ample opportunity for people of all ages to shop around. For specialist advice and peace of mind please contact Macbeth Insurance Brokers who can guide you to the correct cover for your requirements.

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