In this bite-sized episode of 3 Spoonies, we’re joined again by independent insurance adviser Sarah Gashi (aka Clever Duck) to answer real community questions about getting insured when you’re already living with a chronic illness.
We talk about income protection with variable income, what to do if you forget medical details like a past TIA or mini stroke, and whether adding new conditions always means higher premiums. Sarah also shares why stacking smaller policies can sometimes work better than replacing an old one, and how often to review your cover to make sure you’re still protected. You can find more info about Sarah here.
Simple, practical advice for chronically ill and self-employed Spoonies who want to understand their options—without the jargon.
Key Takeaways from the Q&A
1) Income Protection With a Variable Income – Can you pay extra to insure more? Yes—but claims are based on your most recent income at the time you claim.
Proof of income: Most insurers accept your latest self-assessment tax return. If your recent months have been significantly higher and not yet reflected in your return, you can usually provide more up-to-date evidence (e.g., recent months’ figures).
The risk: If you’ve been paying for a higher level of cover but your income drops before you claim, your payout is proportional to your most recent earnings—so you might not receive the maximum you insured.
Pro tip: Book regular reviews (typically every two years) with your adviser to adjust cover up or down based on income, sick pay changes, hours, or contract updates.
2) Forgetting to Disclose a Condition (e.g., after a TIA/mini-stroke) – Worried you’ll forget something and it’ll look like you lied? In many cases, especially with recent significant medical events like a TIA, insurers will request a GP report at application.
Why that helps: The insurer gets the formal medical details directly from your doctor at the start, before the policy begins. That reduces the risk of accidental nondisclosure causing issues later.
Bottom line: Be honest to the best of your ability—insurers often verify with your GP when needed.
3) Will Adding a Condition Always Increase My Premiums?
How pricing works: Premiums are based on your age and health on the day you take out the cover.
If you want to increase cover later: Expect to complete a fresh medical declaration for the new amount. That new “top-up” is priced based on your current age/health.
Smart strategy: Don’t cancel older, cheaper policies if they were taken out when you were younger/healthier. Instead, keep the old policy and add a smaller top-up. Stacking policies can be more cost-effective than replacing everything with one new, more expensive policy.
Managing multiple policies: It’s okay to have several policies (within reason). An adviser can keep track, explain what each covers, and flag expiries so you stay protected without duplicating costs.
Why Regular Reviews Matter: A quick check-in every two years helps ensure:
– You’re not overpaying for cover you can’t claim at today’s income level
– You’re not underinsured if your income and needs have grown
– Your policy still aligns with any employer sick pay or contract changes
You can find more info about Sarah here.
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