The Exeter Income Protection for diabetics
Last year, The Exeter launched its Managed Life product, offering life cover for those with Type 2 diabetes. Now it has changed its underwriting stance for Type 2 diabetics on its income protection products too. These are its existing IP plans - Pure Protection Plus for those in more manual occupations, and Income One Plus, which is a bespoke plan for those with below risk occupations.
According to Diabetes UK, there are now around 3.7m people in the UK with Type 2 diabetes, with a further 12m at risk of developing the disease. Given the additional morbidity risks associated with diabetes, such cover is often not available to diabetics or the ratings applied make it unaffordable.
Comment: Type 2 diabetics have long felt discriminated against by insurers (not just protection insurers) and, while the health risks are known, insurers are accused of simply ignoring the needs of missions of potential customers.
The Exeter is at the forefront of changing that and this latest move, should be welcomed by diabetics and advisers alike.
Plus points: A new underwriting approach to Type 2 diabetics, means opening up a significant new IP market; Existing IP specialist now gaining a reputation for its innovative customer-centric underwriting too.
Not so plus points: Ratings can still apply; Other higher risks groups still struggle to get IP cover on reasonable terms; Applies to Type 2 not to Type 1 diabetics..
Website: www.the-exeter.com.
Rating (max 10): Innovation: 8. Overall: 8. Gold
Tags: IP; The Exeter