Insurance and dementia

The principle

A diagnosis of dementia is a "material fact" for many insurance contracts. You must declare it at policy renewal, or when taking out a new policy, or sometimes during a policy if your circumstances change. Failure to declare invalidates the policy, which means claims may be refused.

Motor insurance

You must declare a dementia diagnosis to your motor insurer. You must also notify the DVLA. Most insurers continue cover, sometimes with adjustment:

• Some mainstream insurers cover with no premium loading where the DVLA confirms fitness to drive;
• Specialist providers (Saga, Age Co, Just Travel Cover) cover dementia explicitly;
• Premium increases are typical but not universal;
• Compare 3 to 5 providers; significant variation in approach.

Travel insurance

Most mainstream travel insurers exclude dementia or load premiums heavily. Specialist providers cover dementia:

• Saga, Staysure, AllClear, Insurancewith, Just Cover, JS Insurance and others;
• Premiums depend on age, destination, duration, severity and any other conditions;
• Annual multi-trip policies sometimes work out cheaper than single-trip;
• Cover usually includes medical emergencies and cancellation; check repatriation cover;
• Compare via Money Saving Expert's travel insurance comparison or Compare the Market.

Declaration is essential. Failure to declare means claims may be refused, leaving you exposed to potentially substantial medical costs abroad.

Life insurance

New life insurance applications after diagnosis are usually declined or heavily loaded. Existing policies taken out before diagnosis remain valid, but check the terms. Many policies require declaration of significant new medical conditions at renewal or annually.

Critical illness insurance

Some critical illness policies specifically cover dementia diagnoses (often paying out a lump sum). Check the policy schedule. New policies after diagnosis are unlikely to be available.

Income protection insurance

Income protection policies may pay out if you cannot work due to dementia. Check the policy terms and the definition of "unable to work". Notify the insurer of the diagnosis as required by the contract.

Home insurance

Dementia is generally not a material fact for buildings or contents insurance, but if behavioural symptoms might increase the risk of fire or damage (for example, forgetting to turn off the hob), declaration may be required. Read your policy and check with the insurer if uncertain.

Long-term care insurance

Specific long-term care insurance is rare in the UK market. Most care funding is from savings, property and means-tested local authority support. Pre-paid care plans (where available) and immediate needs annuities are alternative tools to consider when care costs are imminent.

Health insurance

Private medical insurance generally excludes chronic conditions, including dementia, but may cover the initial assessment and investigations. Check the policy. Top-up cover (cancer, mental health) varies.

Funeral plans

Pre-paid funeral plans are not insurance but are sometimes purchased at this life stage. The Funeral Planning Authority regulates the UK market; check the provider is registered.

Where to get help

• Money Saving Expert (free comparison and guides);
• British Insurance Brokers' Association: 0370 950 1790, find an independent broker;
• Citizens Advice;
• Insurance Ombudsman for disputes: Financial Ombudsman Service 0800 023 4567.