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Underwriting Centre

Critical Illness re-launch

Introducing a one-stop-shop

Our Adviser Underwriting Centre has been designed to make the underwriting process quicker and easier for you when writing new business. 

With useful information, tips and resources,  we have developed this page with you in mind.   This means that instead of having to call us, you can get all of the information you need at the click of a button. 

Our Philosophy

"Our vision is to provide your customers with a digital underwriting experience that is straightforward and effortless whilst ensuring every customer is assessed as an individual in terms of the risk they present, thereby providing the fairest premium"


Robert Morrison - Chief Underwriter 

Underwriting at Aviva

Here at Aviva, we are proud to say that the vast majority of customers (currently 8.5 out of every 10) will receive a final decision from their application alone.

We have created a process that is simple, yet detailed enough to give us all of the information we need to make an informed decision.

By combining our intelligent underwriting systems and the knowledge of our underwriters, we aim to ensure that even our most complex cases can be handled as quickly as possible.

Child with red pencil

Experienced underwriters

 3789_Woman_in_purple_top (1)

All of our underwriters have to go through our Underwriting Academy. By developing an understanding of medical conditions, technical knowledge and risk, we are confident that each one of our underwriters is capable of making the right decision for your client.

The latest technology

2269_Woman_at_computer

We have developed a system of hard-coded rules created by us that, in the majority of cases, will generate a decision at the time of underwriting.

We are constantly trying to make the underwriting process better for you which is why we have recently introduced real time tracking and implemented iGPRs.

How medical conditions may affect underwriting

Pre existing medical conditions

If your client has a pre-existing medical condition it may impact the underwriting process.We have selected the most common conditions and have provided further information on the type of impact certain conditions could have on your clients premiums.

For each condition listed, you will be able to see the types of additional information that we may require before putting your client's policy on risk. If your client does have a pre-existing condition, getting as much information about it as possible is likely to mean a smoother and faster process.

Medical condition Description
Angina Chest pain associated with coronary heart disease (narrowing of the blood vessels that carry blood to the heart). This leads to inadequate blood flow to the heart muscle. 
Arthritis A disease affecting one or more components of a joint (cartilage, lining, bone), usually with accompanying inflammation. Arthritis can affect people of all ages, and there are various different types.
Asthma A disorder of the airways typified by recurrent episodes of wheezing, shortness of breath, chest tightness and cough.
Back pain Pain/discomfort in the spinal column or supporting muscles, ligaments and tendons.
Cancer A condition where cells in a specific part of the body grow and multiply uncontrollably. The cancerous cells can invade and destroy surrounding healthy tissue and spread (metastasise) to other areas. Malignant tumours are cancerous; benign tumours are not.
Diabetes A chronic condition associated with abnormally high blood sugar levels due to the body’s inability to produce sufficient insulin (or to respond to the insulin it produces). Type 1 diabetes – the body produces no insulin whatsoever, and insulin injections are required. Type 2 diabetes – the body produces insulin, but in insufficient quantities, or the body produces insulin but becomes resistant to it. Diabetics can suffer major complications, such as heart disease, stroke, kidney failure and blindness.
Heart attack Death of a portion of the heart muscle due to a sudden interruption in the blood supply.
High blood pressure A sustained increase in blood pressure. Blood pressure is the force of blood pushing against the walls of arteries as it flows through them. Arteries are the blood vessels that carry blood from the heart to the body's tissues. High blood pressure means the heart has to work harder to pump blood around the body, and this increases the risk of developing heart disease or suffering a stroke. High blood pressure is a common condition which often goes undetected as it usually causes no symptoms.
Mental Health Various conditions including depression, anxiety, stress, bipolar disorder and schizophrenia.
Multiple sclerosis (MS) An inflammatory disease of the central nervous system. Signs and symptoms include muscle weakness, tremor, disturbance of speech and vision, and bladder dysfunction. The most common type of MS is described as relapsing remitting MS. It’s characterised by recurrent attacks of symptoms with periods of remission in between. With progressive MS, symptoms continue to get worse over time, with no distinct periods of remission. 
Raised cholesterol Cholesterol is a fatty substance which circulates in the blood. When the amount of cholesterol is raised above an acceptable level based on age and gender, it increases the risk of heart disease and stroke as fatty deposits form inside the blood vessels and hinder the flow of blood. Factors most likely to contribute to high cholesterol are a diet high in saturated fat, smoking, lack of physical activity and high alcohol intake.
Stroke (CVA) Permanent damage to an area of the brain caused by a sudden interruption in the blood supply. This can be due to a blockage in one of the blood vessels supplying the brain or a bleed in the brain. Most strokes occur when a blood clot blocks an artery.

Types of evidence

If we are unable to make a decision based on the information provided on the proposal form, additional medical evidence may be requested to assist the underwriter in their decision making.

Sometimes medical evidence may automatically be required due to the customer's age or the level of financial cover that they are seeking (see here for more details).

General practitioner's (GP's) report

These are obtained from a person’s own doctor. In order to proceed a customer gives us permission to approach their doctor (under the Access to Medical Reports Act) for a report which customers can elect to view before the report is sent to us.

The report is in a standard industry format and the information that the doctor will provide to the insurance company will include:

  1. Details of the customer’s current state of health and any treatment they are currently taking.
  2. Details of relevant past medical history (including any investigations or tests, which have taken place at any surgery, clinic or hospital).
  3. Details of any medical investigations, referrals or treatment that is awaited.
  4. Details of any medical conditions known to occur within the family.

Mini screening

These are simple screenings carried out by a nurse, usually inthe person’s own home at a time convenient to the customer. Blood pressure, height and weight measurements and a urine test are carried out. We may also require an HIV test or cotinine test to confirm the customer’s smoking status and is simple to perform and requires a sample of saliva. If one of these tests is required you and your customer will be informed.

Nurse tele-interview

Occasionally we will ask a nurse to telephone the customer to ask some further questions about something they have disclosed on the proposal. This phone call doesn’t usually last more than 10 minutes and will be carried out at a time convenient to the customer.

Medical examination

This is usually carried out by an independent examiner, selected and arranged for us by a third party provider of medical services. Such examinations tend to be called for when the cover amount is large, the customer is of above average age, or where the customer may have a medical condition about which we need more information. The examination is usually in two parts. The first includes a detailed questioning by the doctor of the applicant’s medical and family history, drinking and smoking habits. The second is a full examination including, heart, chest, blood pressure and urinalysis. If an HIV test is required, this will be performed at the same time from either a sample of saliva or blood.

HIV tests

We use saliva and blood testing. The nurse or doctor sends the samples directly to the laboratory. The results are sent to Aviva.In the unlikely event that a positive result occurs, this is sent directly to the Chief Medical Adviser who deals personally with the situation. The proposer will be told the result of an HIV test.

Electrocardiograph (ECG)

An ECG is an electrical recording of the heart. It enables doctors to understand far more about the condition of the heart muscle and the rate and rhythm of the heart..

Microscopic urinalysis (MSU)

The microscopic urinalysis is the study of the urine under the microscope to identify any possible problems with your body which shows in your urine. 

Fasting lipids estimation (FLP)

A blood test which measures the key blood fats that can indicate an increased risk of heart disease.

Full blood profile (FBP)

Full Blood Profile (Haematology, Biochemistry including Renal and Liver Function and Fasting Lipids Estimation).

Prostate specific antigen screening (PSA)

A blood screening test which can detect presence of an asymptomatic cancer of the prostate.

Family history

The following list includes most of the main conditions with a significant familial element that we need to know about:

  • Alzheimer's disease
  • Blood disorders(haemophilia or other bleeding problems, thalassaemia, sickle cell disease)
  • Cancer - particularly breast, ovarian and bowel
  • Cardiomyopathy
  • Coronary artery disease
  • Diabetes mellitus
  • Huntington's disease
  • Motor neurone disease
  • Multiple sclerosis
  • Muscular dystrophy
  • Parkinson's disease
  • Polycystic kidney disease
  • Polyposis colI (FAP)
  • Stroke
  • Type 2 diabetes

There are many other conditions which run in families or for which an applicant may have been advised to have screening. This has to be disclosed if the customer is applying for critical illness or income protection.

What do we need to know?

  • How many relatives are affected and what age their diagnosis was made (not the age of death, if applicable)
  • When applying we only ask about family history that is relevant, so for example, we will not ask about a family history of multiple sclerosis for life cover because it will not be rated.

Is medical evidence required?

We will usually be able to make an informed decision from the information on the application form, unless the customer indicated they are undergoing screening. It may be necessary to request the details from the client's GP.

For further information on how family history can affect the underwriting process, please see the family history pages in the guide to underwriting.

Build and BMI

Build is something that is considered during the underwriting process.

The key measure that Aviva uses to assess build is BMI(Body Mass Index). The BMI compares weight with height, irrespective of sex. It is calculated by dividing weight in kilos by height in meters squared (m2).

A typical classification of BMI is:

BMI Definition 
<17 Underweight
18 to 25 Healthy
26 to 30 Overweight

31 to 35

Obese
36 to 40 Severely obese
>40

Morbidly obese

Key points for life insurance and critical illness insurance

  • Obesity is often progressive with age, A younger obese life therefore may be rated more severely  than an older life with the same BMI.
  • Moderate overweight is often accepted at standard terms.
  • Significantly overweight applicants will be subject to a heavy premium loading. They may be declined if their BMI exceeds a certain threshold or other significant risk factors are present, for example, a history of angina.
  •  

    Key points for income protection

    • Obesity also has the potential to impact on the customer's ability to work and as such, people who work in a more physical job would be reviewed in more detail than those in a less demanding role. For example, obesity puts greater strain on joints and therefore may lead to problems for builders, plumbers etc.
    • If a customer was significantly overweight we would be likely to impose a higher loading on their policy and if severely to morbidly obese we would decline to offer cover. 

    BMI graph

    How lifestyle may affect underwriting

    Smoking

    Smoking status is something that is considered during the underwriting process.

    Aviva uses the following classification rules for smokers, ex-smokers and non-smokers.

    Smoker Ex- smoker Non -smoker
    Someone who is either a current smoker or who has used cigarettes, tobacco or nicotine replacement products in the last 12 months. Applicants who only use e-cigarettes containing 0% nicotine can class themselves as a non-smoker. Someone who used to smoke but has not used cigarettes, tobacco or nicotine replacement products within the last 12 months. Someone who has never used cigarettes, tobacco or nicotine replacement products. 

    Failure to correctly declare as a smoker will usually be treated as deliberate non-disclosure which could therefore result in the non-payment of a claim.

    The implication of smoking on life, critical illness and income protection insurance

    • Smokers pay a higher standard premium.
    • Very high levels of tobacco consumption may lead to a loading on top of the smoker rates.
    • Smoking may increase ratings for conditions that it is known to exacerbate or reduce the effectiveness of treatment.
    • An accurate and reliable test for the presence of cotinine (a by-product of nicotine) is routinely used by insurers to test declared non-smokers.

    Smokers also diagnosed with the following conditions will be automatically declined

    • Asthma with continual symptoms
    • Chronic Obstructive Pulmonary Disease (COPD)
    • Heart attack/disease

    Alcohol

    Alcohol use is a regular and accepted recreation in our society.

    However there are risks associated with excess consumption which is why we consider it as part of the underwriting process.

    Excessive levels of consumption can be divided in to three broad categories :

    • Hazardous drinking.
    • Harmful drinking. Frequent or regular binge drinking can be considered harmful drinking and can lead to long-term health problems or dependence.
    • Alcohol Dependence. A chemical dependence on alcohol.

    We will ask about usual consumption levels and if there has ever been any medical advice to stop or reduce drinking.

    In addition to asking customers to confirm their weekly alcohol consumption we ask the following:-

    Have you ever been advised by a health care professional or a counsellor to reduce your alcohol use, see a specialist or attend a support group because of your alcohol use?

    Applications where the above question has been answered yes will be referred to manual underwriting. A GP report and in some cases a medical screening would be required. In certain situations terms may be declined.

    The implication of excessive alcohol consumption on life, critical illness and income protection insurance.

    • High level of consumption may lead to a premium increase.
    • A history of damaging alcohol abuse where the applicant has ceased drinking will take into account how long they have been abstinent. Recent cessation may mean postponement. Otherwise a loading or standard terms will apply.
    • A history of damaging alcohol abuse with continuing alcohol consumption will lead to an application being declined.

    Drugs

    Drug abuse means the voluntary abuse of drugs - i.e. where people choose to do so. This includes people who use illegal drugs or abuse legal drugs.

    We will ask the following:

    During the last five years, have you used any of the following: Recreational drugs (other than cannabis), for example cocaine, ecstasy, heroin etc; stimulants, sedatives, tranquillisers or anabolic steroids that have not been prescribed by a doctor, or Methodone?

    The online underwriter will automatically decline any applicant who answers yes to the above question and confirms this history was in the last 2 years.

    Otherwise, the application will be referred to manual underwriting and terms will be subject to a full GP Report. A history of drug abuse with the last 3 to 5 years is likely to attract a high premium loading.

     Types of drugs
    Stimulants

    The most widely abused stimulants are cocaine,  crack (a pure form of cocaine) and amphetamines.

     Depressants  These are substances that slow down or depress the Central Nervous System. Depressant drugs include alcohol, barbiturates and tranquillisers.
     Analgesics  Analgesics are substances that provides relief from pain. Mild analgesics, such as aspirin or paracetemol are relatively harmless. Analgesic drugs of abuse are far stronger than this and are all powerful pain killers. Some are refined from an extract obtained from opium poppies (Papaver somniferum) and are classed as “opiates” and some are produced by chemical synthesis.
     Hallucinogens  Drugs that affect a person’s perception of sights, sounds, touch, smell etc. Some of the stronger hallucinogens can exert a powerful effect on a drug users thinking and self-awareness.

    They include mescaline (found in magic mushrooms) LSD, MDA (methylenedioxyamphetamine) and Ecstasy (methylenedioxymethamphetamine - or MDMA).

    The implication of drug abuse on life, critical illness and income protection insurance.

    • Any history of drug abuse is cause for concern.
    • Ongoing abuse will usually mean any application is declined.
    • Consideration of a history of drug abuse will depend on the  types of drug used, the length of abuse and any damage to health, the length of time since cessation. Any history of injecting drugs will often need a HIV test.

       

    Occupation, residency and pursuits (Inc. HM Forces)

    Occupation

    All applicants are asked to provide their occupation. Further details may be required for disability related benefits – total permanent disability, waiver of premium or Income Protection.

    Life

    Very few occupations will lead to a loading. Some examples of possibly loaded occupations: working on a trawler, manual occupations engaged in tunnelling, mining, quarrying, offshore oil/gas industry, working outside at heights, non-commercial flying, some armed forces (see HM Forces).

    Critical Illness

    A small number of occupations will be subject to an additional clause that excludes claims arising from carrying out their occupation. Such occupations include those that are rated for life cover and some that are not acceptable for Income protection.

    Income Protection

    Occupation is key to determining the premium here. Further details are provided in our Occupation Guide

    Residency

    Our contracts are for residents of the United Kingdom of Great Britain and Northern Ireland, Channel Islands and Isle of Man.

    Applicants have to confirm:

    "“I am resident in the UK, Channel Islands Isle of Man or Gibraltar or have a BFPO postcode” as part of their declaration. They also need to apply with a UK, Channel Islands, Gibraltar or BFPO address and UK bank account.

    These residence restrictions apply to ensure that Aviva UK Life products are not taken out in territories where Aviva has no knowledge of the local legislation, regulation and tax requirements.

    These restrictions are written into the policy Terms and Conditions and are as follows:

    Eligibility

    You must be at least 18 to apply for this policy and, if different, the life covered must also be 18.

    You must be a resident of the UK, the Channel Islands, the Isle of Man or Gibraltar.

    Resident

    At the time you complete the application you must be physically living in the names territory and:

    • a citizen of that territory or a British Overseas Territories citizen; or
    • have been granted permission to settle permanently in the named territory.

    Future travel abroad

    Of course a permanent resident may travel abroad and may even live for some time in a foreign territory. At the very least the applicant must be in the UK etc. at time of application with a permanent UK address and a UK bank account that is used to pay premiums.

    Travel risk is assessed as part of the application. Everyone is asked about any future travel intentions:

    "Are you currently living outside of, or during the next 12 months, do you intend to spend more than 30 days outside  of the EU, other Western European countries, North America, Australia or New Zealand? You can ignore holidays lasting less than one month, business trips of up to one week provided they do not total more than 12 weeks and postings as members of HM Forces"

    Anything disclosed in answer to this question is subject to individual consideration.

    Life of another cases

    The above guidelines refer to cases where the applicant is also the Life insured. With Life of Another cases it may be possible to consider Lives insured who are resident abroad when the policyholder is an appropriate UK individual or business.

    We strongly recommend that any such application has a pre-sales conversation to ensure we are happy to consider. We’ll discuss risk factors, insurable interest, how to manage any potential obstacles including medical evidence gathering and understand any additional costs. We’d expect any doctors examination or nurse screening to be performed in the UK. Please call the High Value Underwriters on 0800 0929964 and select option 2.

    Purpose of cover Notes
    Key person The life insured needs to be directly key for a UK registered/operational business. i.e. not a subsidiary. 
    Shareholder protection The insurable interest needs to be established in a way that the business can be the policyholder, e.g. set out in the Articles of Association.
    IHT (including gift related) e.g. policyholder is a UK resident Trustee(s), or for gift related scenarios the recipient of the gift is the policyholder.

    Relevant Life

    Relevant life is different. Both the Life insured and the policyholder need to be in the UK, which for relevant life does not include the Channel Islands , Isle of Man or Gibraltar.

    HM Forces

    Aviva are committed to offering terms at the most competitive rate to all members of the armed forces wherever possible.

    Members of the armed forces are asked "“Are you currently on, or within the next 12 months are you due to go on, a tour of duty to an active theatre of operations or humanitarian aid operations?” If the answer to this question is no then most service personnel can be accepted for life cover at standard rates. Exceptions are high risk occupations such as bomb disposal, air crew and special services such as SAS. If an applicant answers yes to the above question then individual consideration applies depending on nature of conflict and destination. We usually can offer cover to protect a mortgage.

    Critical illness

    Armed forces are acceptable without any extra charge though critical illness arising from accident or injury in the course of their occupation in an active theatre of operations or an area of hostility, war or conflict will be excluded.

    Income protection

    We don’t offer this to members of the armed forces.

    Pursuits

    Some pursuits present an increased risk – usually from accident or injury.  The pursuits that we ask about vary according to benefit applied for:

    Pursuit Asked about? Likely outcomes
    Life insurance Critical illness Income protection Life insurance Critical illness Income protection
    Diving Yes Yes Yes Standard if trained, accompanied, to less than 40m and not in caves, wrecks or other risks. Otherwise loaded.  Standard if trained, accompanied, to less than 40m and not in caves, wrecks or other risks. Otherwise pursuit excluded.  Standard if trained, accompanied, to less than 40m and not in caves, wrecks or other risks. Otherwise pursuit excluded.
    Mountaineering/rock climbing  Yes Yes Yes  Standard if UK only, up to 4000m and using safety gear. Otherwise loaded.  Standard if UK only, up to 4000m and using safety gear. Otherwise pursuit excluded.  Standard if UK only, up to 4000m and using safety gear. Otherwise pursuit excluded. 
    Flying (other than as a fare paying passenger), hang gliding or paragliding Yes Yes Yes Usually loaded. Pursuit excluded. Pursuit excluded.
    Motorcar or Motorbike racing Yes Yes Yes May be loaded Pursuit excluded. Pursuit excluded.
    Parachuting, skydiving or BASE jumping Yes Yes Yes Usually OR if less than 50 jumps per year. Base jumpers declined. Pursuit excluded. Pursuit excluded.
    Caving or Potholing No Yes Yes N/A Pursuit excluded. Pursuit excluded.
    Powerboat racing No
    Yes Yes N/A Pursuit excluded. Pursuit excluded.
    Transocean sailing or offshore racing No Yes Yes N/A Pursuit excluded. Pursuit excluded.
    Full contact martial arts, combat sport or boxing  No Yes Yes N/A Pursuit excluded.  Pursuit excluded.
     Any extreme sport, for example bungee jumping (other than one off bungee jumps), white water rafting, cliff or free diving etc. No Yes Yes N/A N/A
    Pursuit excluded.
    Equestrian sport other than private hacking No No Yes N/A  N/A Pursuit excluded.
    Winter sports other than holiday skiing or snowboarding for pleasure   No  No Yes N/A N/A Depends on activity – will usually be excluded. 


    Useful tools

    Guides

    Automatic underwriting requirements

    Find out the types of medical evidence required for the amount of cover required/age of your client

    Occupations guide

    A guide explaining how different occupations are rated

    A guide to medical conditions and the underwriting process

    How pre exisiting conditions can impact the underwriting process

    Capture guides
    Person typing

    Calculators

    BMI calculator

    Work out your client's BMI and the likely decision Aviva would apply for it - you will need to log in to be able to view this

    Income Protection Maximum Benefit Calculator

    Find out how much cover you client is entitled to in relation to their wage.

    High Value

    We know how important high value protection business is to you, which is why we can provide bespoke service from our specialist high value team. 

    Our High value team looks after applications for:

    • Life cover of more than £1 million
    • Critical illness cover of more than £500,000
    • Income protection cover of more than £50,000 annual benefit

    For more information on our service for high value clients, take a look at our handy guide.

    Yellow telephone 2

    Who to contact

    Business protection and high value administration experts

    0800 092 9964

    High value underwriters

    0800 082 9950

    Tax and trust experts

    0800 056 2795

    Our bespoke service

    Financial

    • We get most of the financial information we need as part of the application
    • We offer a new short question and declaration approach which means we expect more than 80% of applications up to £2m life cover and £1m critical illness cover being accepted financially with it.
    • If we need to ask for financial information, we'll make the process as efficient and painless as possible.

    Medical

    • We don't want to waste your clients' time by asking them to attend any unnecessary appointments. Instead we'll use existing medical information wherever possible. So, if your client has had an executive screening in the last nine months or completed a medical exam with another provider, we will endeavour to obtain a copy.
    • If we do need new evidence, your client can choose the surgery where the medical examination takes place(subject to satisfactory fees).
    • Or, with our mobile doctors service, they can choose a different location altogether such as their home or workplace.
    • We use providers with a nationwide network, who are flexible enough to meet your client's busy schedules. 

    Even more reasons to chose Aviva

    As well as our service promise:

    1. We provide a fast and efficient pre-sales service, managing all aspects of your client's case effectively right from the start.
    2. We can accept high levels of cover for life insurance, critical illness and income protection. 
    3. We have a strong brand with a long history of protecting what's important to your clients.

    It goes without saying that you want ti give your high value clients the best possible value. So we work closely with our pricing experts to offer  the best price we can. What's more is that our Protection Promise will provide up to £1m free life cover between the point of application and the completion of underwriting.

    Flexible financial underwriting

    When we need information:

    We start asking for financial information when the intended overall cover in the market is:

    • £1,000,001 or more life cover
    • £500,001 or more critical illness cover

    Although, if we have clarity around the purpose of cover, we do not routinely aggregate business and personal cover when determining any financial requirements.

    NB: lower limits of £500,001 life and £250,001 CI apply for house persons, retired, students and the unemployed.

    Methods of information gathering

    We have a flexible approach to financial evidence gathering:

    • Submit online as part of the application process
    • Short financial questionnaire (a quick question and declaration approach)
    • Full financial questionnaire (this is if the overall cover is more than £2m (life) or £1m (CI), we may also use this if the short questionnaire is insufficient
    • A recorded call with a high value underwriter at any time during the underwriting process (even at pre-sales stage) for up to £3m life cover and/or £1m CI cover (select option 2 on the support line 0800 092 9964)
    • We don't insist on a formal financial questionnaire if a bespoke report covers off the salient points, including overall cover 
    • Factfinds instead of financial questionnaire for up to £3m life cover and/or £1.5m CI cover
    • High market limits, where supporting evidence is needed for more than £4m life cover or £2m CI cover.
    • We don't ask independent third parties to countersign financial questionaires.
    • We can download copies of accounts from Companies House so you don't have to.

    A guide to how much cover we'll consider

    Purpose

    of cover

     

    Short FQ

    What we can allow with this quick question & declaration approach.

    For use where overall intended market cover will not exceed £2m Life or £1m CI.

    Full FQ

    Higher amounts of cover can be considered if this FQ is completed, with potentially even higher levels with a sound calculation and rationale

    Personal or Family

    (can consider adding in any unprotected residence mortgages, bearing in mind term of the policy versus repayment date of the loan)

    Age range

    Multiple of earned income for age and benefit

    Age range

    Multiple of earned income for age and benefit

    Life

    CI

    Life

    CI

    Up to 35

    27

    10

    Up to 35

    30

    11

    36 to 45

    21

    8

    36 to 45

    25

    9

    46 to 55

    15

    6

    46 to 55

    18

    7

    56 to 65

    9

    4

    56 to 65

    12

    5

    66 up

    6

    N/A

    66 up

    7

    N/A

    Key person

    (can consider adding in any unprotected commercial loans bearing in mind term of the policy versus repayment date of the loan)

    The last 12 months Net profit before tax:

    • Up to 5 times for Life cover
    • Up to 3 times for CI

    (Total between all key persons for the business.)

    Average of the last 2 years Gross Profit (attributable to the key person) multiplied by 2
    or

    Average of the last 12 months Net profit before tax (attributable to the key person) multiplied by 5 for Life cover and 3 for CI
    or

    For replacements costs we usually allow 5 times salary, although up to 10 times can be considered

    Shareholder/ Partnership

    Valuation of the business does not exceed 8 times the last 12 months Net profit after tax.

    (Sum assured applied for will relate to the % shareholding.)

    Average of last 2 years Net profit after tax multiplied by 10
    or

    3 times the average of the last 2 years Gross Profit
    or

    We will consider any other appropriate method of valuing businesses

    Business loan

    The amount of loan the key person is responsible

    As per the Short FQ

    Buy to let

    Full amount of the liabilities

    • Usually allow 100% of the first £2m Life cover, then 50% of the balance.
    • Cap CI at £1m

    IHT

    Full amount of IHT liability as long as that liability does not arise after the policy proceeds become payable, i.e. a 2nd death policy may be appropriate.

    As per the Short FQ

    Gift related IHT

    Full amount. But the series of policies need to match the tapering effect of the liability (divided by 5 with policy terms of 3, 4, 5, 6 & 7 years)

    As per the Short FQ

    Relevant Life: Exactly the same as for Personal cover (including adding in mortgages)

    We are able to take into account any earned income/remuneration irrespective whether that income is related to the particular Policyholder/Employer or not.

    Earned income includes salary, benefits in kind and regular dividends and bonuses from any employment, i.e. income that will be lost on death or critical illness.


    Underwriting helpline

    Call our pre-sales underwriting helpline

    0800 533 5192

    Get instant advice before submitting an application Monday to Friday, 8.30am to 5.30pm.

    Calls may be recorded. 

    Contact us

    You can find contact details for each product area in the drop-down list:

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