Q: Mortgage protection insurance application referred to reinsurers

[Amygdala]

Dear all,
We recently have gone sale agreed on our "forever home" and naturally need mortgage protection insurance. My partner had a benign skin lesion removed recently which we naturally put on the form. We have now returned all doctors' reports documenting the benign nature, yet our application was referred to the reinsurers. The amount we are borrowing is substantial and I am the main earner with my partner contributing approx 8-10% of our earning potential/repayment potential. Our application has been with the reinsurers for just under 2 weeks awaiting a decision. We are naturally stressed and anxious as our closing date was today.

Can we be refused based on a proven benign condition on an applicant who is a minor contributor?

Any feedback would be welcome.
BW
A
PS I originally posted the same question in the " insurance not covered in other forums" forum.

 

[Itchy]

Yes you can be refused. If it was benign, its likely you may have a small loading for the next few years and then revert to a 'normal' rate. If you are offered insurance, you are not stuck with the one company, you can continue to shop around for a suitable deal.

 

[Amygdala]

Thank you very much Itchy for your response.
On what grounds can we be refused? This is a histologically benign lesion as mentioned above.
1000's of patients have benign skin lesions remove weekly in the country.
Are all these potentially "refusable"?
BW
A

 

[odyssey06]

If you are the main earner there is chance lender will provide an exemption for the minor earner - especially if they have say pension assets or death in service benefit

 

[Itchy]

Thank you very much Itchy for your response.
On what grounds can we be refused? This is a histologically benign lesion as mentioned above.
1000's of patients have benign skin lesions remove weekly in the country.
Are all these potentially "refusable"?
BW
A

You can be refused on the grounds that the company are a private business and are not obliged to cover to you in any way! There could be a multitude of reasons for a refusal. They could already have too much of your 'type' of risk on the books and may not be able to take on more. I wouldn't worry, there are people with far more serious conditions/circumstances than you.

Its obviously a stressful time for you, relax! See what comes back, establish the rationale for a 'refusal' and work out your next course of action. If the delay is unacceptable to you, apply for cover from another company while you're waiting. Use a broker, who maybe able to give you an indication of how serious your circumstances are. I used lion.ie in the past (no connection).