Protection Product to be launched by Royal London
Could this be the Protection that Diabetics have been waiting for?…..
Local Cornish radio station Pirate FM recently stated that almost 60 thousand people in Cornwall are at risk of developing diabetes, and in 2013 in Truro over 100 people were referred to their doctor after a free test found they could be at risk of developing Type 2 diabetes.
With statistics like this, many people are searching for an answer that could protect them.
Royal London’s Protection answer
Royal London revealed at the 2016 COVER Summit that they are set to release a life cover policy specifically tailored for diabetics.
Head of protection at Royal London, Debbie Kennedy, has stated that the life insurance policy will ask targeted underwriting questions for diabetics.
The Product is likely to be launched sometime in early 2017.
A product like this would not only help the finances of the individual short term, but also provide them with piece of mind. Especially people who are coming up to retirement or looking for some kind of protection.
Debbie Kennedy said “There’s a growing number of people in our country who have diabetes – there are over 4 million people diagnosed with either type 1 or type 2 diabetes.”
“A worrying trend is that it is accelerating among young people and children. At Royal London, we thought surely this group of people more than anyone need access to protection.”
Every year policyholders will be asked to provide the results of their HbA1c – the standard test to measure blood sugar levels. If their condition has improved, Royal London will consider a reduction in premium.
Kennedy said: “We held focus groups with customers to understand their attitudes to buy protection and we spoke to advisers about what they felt were the processes when looking to sell cover.
“The process was frustrating and very difficult – people thought cover was unaffordable and more expensive that what they were led to believe with standard rate quotes and the process was time consuming.
“Someone with a chronic health condition could never follow the standard rates process but yet mostly in our industry our process hunts out clean lives and is designed to sail straight through. Advisers wanted to get more accurate quotes – more often than not they had to go for indicative quotes. One quote from an adviser that stood out was when someone walks in, if they tell you they have diabetes, your heart sinks.”
Kennedy also stated “People with diabetes felt that standard questions from insurers were not quite right for them, so they were taking a much more targeted approach for people who controlled their condition very well, they would be considered a better risk than some other lives. We have stripped away all of the other parts of the process, asking questions relevant to them, getting a much more accurate picture of their condition, we’ve shortened the application process meaning that people can go in risk within a very short time, more importantly at the end of that they’re given a decision.
“We’ve gotten rid of the old process with [further medical evidence] and with the questions we’re asking, get a much more accurate picture. We know the type of tests they get anyway so everyone will have an annual test which is a good indicator of control [HbA1c], we’ve asked: ‘can you share that test with us.’ Via email or via phone, they can upload a photo of that. We’re happy to receive that after we’ve given terms.
“So they can share with us on an ongoing basis. If the control is improved, we will reduce the premiums, [this is an example of] dynamic pricing.”
There is estimated to be over 4 million people living with diabetes in the UK at present (at the time of writing). Which represents 6% of the UK population or 1 in every 16 people having diabetes (diagnosed and undiagnosed).
More than 24,000 people a year with diabetes die before their time, which is because:
- Only 60 per cent of people with diabetes are getting the recommended checks , which are key to identifying any problems early.
- Diabetes education courses are not being commissioned for people in over a third of areas in England.
- Hospital care for people with diabetes is consistently poor and, in a significant minority of cases, is putting people’s lives at risk.
Here is more detailed information on Protection
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Last updated: 28th October 2016
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