There are a number of ongoing risks created by incomplete or inaccurate medical information, Standard Life’s Strategic Partnerships Lead for Annuities – Andy Powell – told Professional Paraplanner. Understanding what sits beneath the disclosures can make the difference between an aligned plan and a costly mismatch.
Medical underwriting is one of the most impactful yet misunderstood elements of retirement income planning.
For paraplanners, it represents both a risk and an opportunity – a risk if incomplete information undermines suitability, and an opportunity in asking the right questions to unlock significantly better outcomes for clients.
Clients under‑disclose because of past insurance experiences
Andy Powell, Strategic Partnerships Lead for Individual Retirement at Standard Life, spoke openly about one of the biggest reasons clients fail to disclose fully.
“Clients think disclosing medical information is bad. They’ve spent their lives telling insurers about illnesses and it’s resulted in exclusions or higher premiums.”
This creates a deep‑rooted behavioural barrier. Clients instinctively hold back information because they assume it will harm them. But annuity underwriting works differently.
Poor health can translate into higher lifetime income. Missing details can mean clients receive thousands less each year than they might otherwise be entitled to.
A real example: How one missing detail increased income by 47%
Andy shared a striking case involving a client with diabetes, a condition that is frequently under‑reported or misreported.
The client had incorrectly stated their diagnosis date by ten years. Their earlier diet‑controlled years weren’t included, simply because they didn’t realise they mattered. Once the information was corrected and associated complications were added, everything changed.
“When everything was corrected, the income went up by 47%,” Andy says. “It’s the biggest uplift I’ve ever seen.”
While this was an extreme example, it illustrates what’s at stake. Respiratory conditions, cancers, hypertension and diabetes are routinely reported inaccurately. Even small misunderstandings, such as forgetting a past diagnosis or misinterpreting a medication, can materially alter the quote.
Paraplanners are critical in the data‑gathering stage
Paraplanners often act as the guardians of detail. Even when they don’t speak directly to clients, they are the ones who spot inconsistencies in fact‑finds or details that don’t quite align.
Andy encourages paraplanners not to hesitate in asking for more:
“You don’t need to remember every medical term. You just need to spot the red flags. If someone mentions diabetes, ask for detail. Ask for complications. Ask about diagnosis dates.”
He also emphasised how often clients simply misunderstand their medical picture. Drawing on his ambulance experience, Andy said: “I’d ask patients if they suffered with anything and they’d say no, then hand me a repeat prescription the length of a scroll.”
This is precisely where paraplanners add huge value – they know when the story doesn’t match the paperwork, and they know when to push for clarity.
Bad data can break a financial plan
Underwriting doesn’t just affect the annuity rate; it can reshape the whole retirement strategy.
Andy stressed the seriousness: “Once you’ve bought a lifetime annuity, that’s a decision for life. Getting it wrong can literally blow a hole in all the planning.”
A plan constructed on incorrect assumptions is not simply inefficient, it can become fundamentally misaligned with the client’s goals and tax position.
An opportunity for paraplanners to drive better outcomes
Medical underwriting might not grab headlines, but it can sit quietly behind the scenes of suitability. Accuracy affects the level of secure income a client receives, the structure of their wider assets and the sustainability of their long‑term plan.
Paraplanners who routinely question, clarify and escalate medical details not only reduce risk but actively improve client outcomes. Their attention to nuance can unlock higher rates, strengthen cashflow structures and support better, more compliant suitability.
In a landscape where retirement decisions are increasingly personal and flexible, the details matter more than ever – and paraplanners are ideally placed to ensure those details are right.
Main image: medical, underwiting, vitaly-gariev-xDNwySMfR5I-unsplash
