Life insurance, GP's reports & subject access requests

life insurance advice newton abbot

When you apply for life insurance, your insurer may need to request a medical report from your GP to verify that you are fit and healthy and wont expose them to too much risk. This is nothing extraordinary, however in practise getting a GP to provide this report can be incredibly difficult. The normal process is for the insurer to request the necessary medical details directly form your GP (with your permission), however this has become increasingly slow and has led to such delays that many insurers are now suggesting that you request your own report using data protection legislation.

Under the data protection act, if you request it, any organisation that holds information on you (personal, medical or otherwise) must provide it to you within 40 calendar days or face sanctions. This type of request is known as a "subject access request" (SAR) and you can be charged a maximum of £10 for the service (or in rare cases up to £50 if files are paper based). The Failure of an organisation to comply with a SAR brings serious consequences and can lead to criminal prosecution.

If your insurer asks you to request a SAR you do not have to agree, however failure to do so could slow down your application and postpone the commencement of cover.

If you are not yet familiar with the potential problem, many applicants experience delays of up to 3-6 months in application processing caused solely by the failure of their GP to provide medical records. The implications of not having cover can be dramatic, but many insurers now offer ‘free cover’. Free cover guarantees that you are insured whilst your application is being processed. Free in this case, referring to the lack of underwriting required. It is important to understand the specific terms of any free cover being offered.

The increase in the use of SARs in life insurance applications may be the catalyst needed for GPs to improve their administrative service and with any luck should lead to positive developments looking forwards.

The information contained in this article is based on current legislation and tax rates, and could be subject to change in future

Your home may be repossessed if you do not keep up repayments on your mortgage.

For mortgage advice we can charge a fee of typically £500 or we can receive commission from the lender.

Buy to let mortgage adviceCondidering Buy to Let?

A Buy to let mortgage allows you to buy a property and rent it out for commercial gain. The rent that you receive should at least cover the monthly mortgage payments or you will have to pay the difference yourself. The benefits are the potential to gain from an uplift in valuation or provided the rent received is higher than the mortgage costs, equity can be accrued in the property over time or an income can be derived.

Continue Reading »

Blot on the landscape or beneficial financial outlay? the kingskerswell bypass..

Continue Reading »