Getting life insurance, critical illness cover, income protection and private medical insurance is possible for someone living with Crohn’s disease or ulcerative colitis (UC), but insurers will assess the customer’s condition based on various factors.
How insurers calculate the cost of life insurance
The cost of life insurance is based essentially on a risk assessment. Insurers will evaluate:
- Medical condition(s)
- When you were diagnosed and how severe your symptoms are.
- More frequent or severe flare-ups can mean higher premiums.
- Stronger medications like immunosuppressants or steroids may increase the cost.
- Past or planned surgeries (e.g., bowel resection, stoma, colostomy or ileostomy) may impact getting cover until the surgery is complete as well as pricing.
- Personal health & lifestyle
- The younger the applicant, the lower the premiums.
- Smoking & alcohol use can increase costs due to higher health risks.
- BMI or other health conditions (e.g., diabetes, heart disease) can lead to increased monthly premiums.
- Insurer’s underwriting process
Each insurer has its own criteria for assessing risk. Some may be more lenient towards Crohn’s and Colitis than others. So, it often requires a good search of the whole insurance market to make sure that the customer gets the best policy.
Insurance ratings – breakdown
If you have Crohn’s or Colitis, insurers may apply a ‘rating’ to your policy, which increases the standard monthly premium due to perceived risk.
What does this mean:
- if the customer’s condition is mild and well-managed, standard rates may apply – which means the customer is getting the same price as someone who does not have a medical condition.
- A 25% to 50% Increase on the standard monthly premium may be applied if there are regular flare-ups or moderate medication use.
- A higher rating may apply if there are recent surgeries, frequent hospital admissions, or severe complications.
What are Exclusions?
Life insurance cover will never have any exclusion. However, when it comes to critical illness and income protection, in some more serious cases, insurers may offer cover with an exclusion, meaning certain conditions related to Crohn’s or Colitis won’t be covered in the policy.
How do brokers help?
A protection broker helps people with medical conditions find the best life insurance options.
- They will compare insurers to identify the providers who are most likely to accept an application at the best price.
- A broker will ensure medical details are clearly communicated to the insurer(s).
- Brokers will search the whole insurance market to find the best provider for your individual circumstances.
How do brokers get paid?
Brokers earn commission from the insurer when a policy is arranged – but customers don’t pay extra for using their services.
- Typically, a broker earns a percentage of the annual premium
- Some brokers also receive a small percentage of the renewal premium each year.
Because the commission is included in the premium whether you use a broker or go direct, working with a broker can help to get better cover without extra cost.
What information will an insurer need?
To assess an application, insurers typically ask for:
- Diagnosis date
- What treatments you are on, including steroids, immunosuppressants, or biological treatments?
- Any past or planned procedures.
- Frequency and severity of symptoms.
- Complications – such as fistulas, abscesses, or anaemia.
Meet our Expert…
Thomas Heyes, senior protection adviser with The Insurance Surgery, is here to answer your insurance questions. You can read more about him and the business in our profile of The Insurance Surgery.
If you have a question about life insurance leave a message in the comments below or email kate.saines@emap.com
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