Insurance and MS

This page aims to help you decide on the best course of action for you, whether it is choosing insurance policies or finding out about companies which may be more sympathetic to people with MS. Finding the right insurance policy can take time and persistence.

Some insurance companies are, and sometimes choose to be, ignorant about MS and often consider people with MS as a high risk. It is a good idea to "shop around" and get quotes from different companies; you may avoid costly premiums by doing this. When making decisions on insurance matters, it is in your interests to consider taking independent financial advice.

Life Assurance

In many instances, life assurance has become a social necessity. Unfortunately, people with health problems have a greater need for the security and protection of life assurance. It can often be difficult and costly to obtain adequate insurance cover.

When policies are being drawn up by insurance underwriters they use "mortality tables". These show the average life-span of a proposer and help to calculate their premiums to cover the risks and also show a profit. If an underwriter determines that an individual does not have any "risk factors" they will be covered by a "standard" insurance policy at ordinary premium rates. However, if a proposer has a complex medical history the underwriter may ask for a higher premiums for their policy. A medical condition is either stable, reducing or increasing - the underwriter will apply the terms accordinly.

It is common for people who have been diagnosed with MS for a significant period of time to be regarded as a stable risk. The underwriter usually charges an age extra. This may, for example, mean that a 30 year old would be regarded as a 35 year old and the premium would be increased accordingly.

If a medical condition presents a reducing risk an individual may apply for a With-Profit Endowment Policy. This guarantees a minimum sum on death and when the policy matures, profits are added. However, the underwriter might impose a reducing debt of 50%. If the initial cover was £10,000, for example, and the client died the following day, the policy would only pay £5,000. The year after that, the payment would be £5,500 and so on until the end of the policy term, when the full minimum sum assured is paid and the With-Profit Endowments are then added. There are several kinds of life assurance:-

Term (protection only) insurance - This is a policy that is taken out for a set period of time. If death occurs within that time the policy will pay out the sum assured. There is a choice between a lump sum payment on death or Family Income Benefit. If death does not occur during this period of time, the policy is terminated and no payment is made. The premiums are not returnable if the policy is cancelled.

Investment Insurance - This is a policy that it taken out for a set number of years and, on death, will pay out a lump sum. However, if the set term is completed and death has not occurred, a lump sum payment is made anyway.

A Profit Endowment Police - This policy guarantees a minimum payment at the end of a stated term. It is profit linked so bonuses are added by the company as the term progresses. The bonus figure is based on the company's Investments and therefore it is not a guaranteed sum.

Low Cost Endowment Policies - These policies are linked to a mortgage and are a combination of profits, endowment and term insurance. At the end of a term, enough should be paid to repay the mortgage loan and get a lump sum. If death occurs before the end of the period, the term insurance part of the policy guarantees payment of the loan.

Whole Life Policies - This policy pays out whenever death occurs. It also includes a savings element. There are two types of policy, endowment and unit linked.

Endowment - This can be non-profit, paying out a guaranteed amount on death with profit. This also guarantees a set amount including the bonuses which are added and are linked to the company's profits.

Unit Linked - This policy involves your premium being invested in units in one or more funds ran by the insurance company, providing the investment part of the policy. Units are cashed monthly to provide the life insurance.

Private Medical Insurance

Many people are now taking out private medical insurance schemes. They are an alternative to the NHS, enabling the insured person to receive private medical treatment. These insurance policies vary considerably to fit an individual's needs and circumstances. A private medical insurance policy does not cover routine medical treatment such as dentists, opticians and chiropodists. Some policies excluse pre-existing medical problems.

Permanent Health Insurance

This can also be known as Income Replacement Insurance Policy. A permanent Health Insurance Policy is taken out to cover risk of a health problem which prevents the insured person from working.

A policy like this pays a monthly income following a waiting period when illness has halted employment and lasts until you reach an agreed age. The policy continues despite the number of claims made. The cost of the policy depends upon age, occupation and health status.

Wheelchair insurance

It may not seem an obvious thing to do, but it is always best to get a wheelchair insured. They are expensive to buy and to replace or repair. If you use a wheelchair regularly, imagine the restrictions and diminished lifestyle that would occur should you be unable to use it, whether due to damage or loss. Wheelchair insurance is offered by a number of companies.

Car insurance

Under the Road Traffic Act, everyone must have minimum car insurance cover. This means that should you damage somebody else's vehicle, that person can make a claim to your insurance company in order to cover the cost of repairs.

Third Party Fire and Theft - This is a minimum insurance policy that covers liability for injury to other people, damage to their cars or property and theft or fire damage to your own car.

Comprehensive Insurance - This is a full insurance policy that covers your own car against any damage, as well as insuring you for Third Party Fire and Theft. The type of insurance cover you choose for your car depends on its value. It may not be worth paying a high premium for full comprehensive cover for an old car with a low market price.

The costs of policies varies enormously, depending on your age, driving experience and the area in which you live. It is always worthwhile shopping around to obtain the best and most appropriate policy for you.

Insurance companies require notification of a change in circumstances. This includes anything which affects your health or driving ability. If you already had an insurance policy before you were diagnosed with MS, you must inform the company when you have been diagnosed. If you do not inform them, there is a possibility that the policy may become invalid. The company may require an additional premium to continue the original policy. When this happens it is advisable to approach other insurance companies for quotes on their own policies. This will help to ensure that you get the best policy to suit your circumstances.

If you are driving abroad, you will probably need to obtain a black Card. For a small premium this will extend the cover on your British policy fully and insure you when you are abroad.

Holiday Insurance

It is often a false economy to leave insurance out of holiday plans. An inclusive package policy is offered by the tour operator or travel agent, who consults an insurance company for an insurance policy that suits your needs. Cover for a holiday policy usually includes baggage loss, cancellation, personal liability and personal accident.

Many overseas travellers forget that they may have to pay thousands of pounds in medical costs if they fall ill or have an accident while abroad. The costs of bringing a person back to the UK in the event of illness is very expensive without insurance cover.

Free or reduced cost emergency medical treatment is available in other European Community countries if you are taken ill suddenly or have an accident. Emergency treatment only is covered, and you will receive care on the same terms as the nationals of the country you are visiting. These arragements are provided under the State Health Care Schemes. Private treatment is not covered. To get medical care in most European Community countries, you will need a form called an E111.

Your E111 will be valid for up to 5 years as long as you continue to live in the UK. You should apply for it at least a month before your first visit starts. Sometimes treatment is free but often you will have to pay part of the cost yourself. Occasionally you may have to pay the full cost and then claim a full or partial refund. When claiming a refund, apply by post or in person to the local Sickness Insurance Fund of the country you are visiting. You must include the original document and keep a photocopy for your own reference.

If you leave your claim until your return to the UK you may face a long wait or lose the money altogether. If you intend to get medical treatment while you are abroad the E111 form will not cover the cost.

Buildings Insurance for Homeowners

It is vital to arrange insurance protection for your home, as this is probably your most valuable possession.

A Home Buildings Insurance Policy covers the structure of the building, permanent fixtures and fittings (e.g. sanitary fittings, permanent kitchen and bedroom cupboards). It will also cover interior decorations and most policies extend to include outbuildings such as garages, blackhouses and garden sheds. Limited cover may also be given for boundary walls, fences, gates and paths/drives.

Most policies will insure you against risks such as damage to your home by fire, lightning, explosion, earthquake, thieves, riot and malicious persons, storm and flood, aircraft or things falling from them. subsidence, land-slippage, falling trees, impact by vehicle or animal, breakage or collapse of radio and TV aerials, escape of water from tanks or pipes and oil escaping from fixed heating installations.

Home Contents Insurance

Whether you own or rent your home, you need insurance protection for its contents. The policies which are sold differ in the cover they provide and in their terms and conditions. It is important that you understand your policy and that you are adequately insured.

A Home Contents Insurance Policy normally covers your furniture, furnishings, household goods, kitchen equipment and appliances, food and drink, televisions, videos, computers and audio equipment, clothing, personal effects and valuables such as jewellery and money up to a set limit. You can, in fact, insure anything which is movable. That is except for property such as boats, caravans and vehicles which are insured separately.

You are insured against the same risks which apply for House Building Insurance. These also include accidental breakage of mirrors; glass fixtures and fittings and glass items or additions to furniture. Some policies also include accidental damage to televisions, videos, home computers and audio equipment.

However, a standard Home Contents Insurance does not cover every risk and it may be advisable to extend your policy to cover your specific needs.

There are two types of Home Contents Insurance Policy:

Replacement as new - This policy will insure that you will be paid the full cost of repairing damaged articles or the cost of replacing them with equivalent new articles if they are stolen or destroyed.

Indemnity - If items are covered on an indemnity basis, you will be paid the cost of repairing damaged articles or of replacing what is stolen or destroyed minus an amount for depreciation and wear and tear.

Furniture, carpets, domestic appliances, televisions, videos and audio equipment can normally be insured on a replacement as new basis. Clothing and linen are normally insured on an indemnity basis. This means the insurers deduct an amount for depreciation and wear and tear.

How to complain

If you have a dispute over an insurance policy the following steps should be taken:

1. Contact the insurance company, broker, building society or bank that arranged the policy and present your complain.

2. If the reply is unsatisfactory, refer your complaint to the Chief Executive of the company.

3. If the complaint remains unresolved you can seek advice from a Citizen's Advice Bureau, Consumer Advice Centre or from most local authority Trading Standards/Consumer Protection Departments. Their addresses are in your local telephone directory. It is also important to find out if the insurer belongs to an independent claims settlement scheme and take up your complaint with them.

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