Life Life Insurance refusal query

Hi, I am a longtime viewer of this site but never had the need to post until now.

Recently I inquired with a Life Insurance company about the possibility of getting some life cover that will act as mortgage protection for a house that we hope to sign for in a couple of months time. The insurance company only deals over the phone or you can apply online (Laya).

I only spoke with them over the phone and gave my name, date of birth and phone number. On the call I mentioned that my weight was an issue and they said that they would call me back after speaking with their underwriting team.

I then got a call back to say that they would be unable to provide me with cover due to the weight issue. I am now really worried as I what I taught was an initial discussion about the prospect of getting cover has now turned into an application that has been refused. My fear is that this is bad, as Life insurance companies ask if you have been refused elsewhere and I am not sure if I now have to disclose this in future applications with the main life insurance companies? At this stage I would have hoped to solve the main issue of the weight...

thank you...

Hi,

You will need to disclose the fact that you were declined cover on future applications that ask that question (most companies). However, if your weight decreases then you may be able to get cover in the future despite the previous declinature.

Hope this helps.

Stephen

Since you did not complete a Proposal Form or make a formal application I would not consider this to be a refusal.
It is likely that whatever company you are using for the Mortgage will have a "preferred provider" when it comes to Mortgage Protection. You can then make a formal application to them.
Weight (or to be precise - overweight) is a factor which will be taken into account when considering an application for Life Assurance. But I would wait until you are completing the Mortgage paperwork before worrying about the Mortgage Protection.

There are a few threads here somewhere already about this same topic. People are often refused life cover for various reason, just make sure the bank you apply to accepts waivers in lieu of life assurance where a person cannot get it or it is too expensive due to loadings.

I would be distinctly uncomfortable about relying on the idea that as no proposal form was completed that there has been no refusal.

The law on insurance proposals is quite strict. On the evidence, I think that there is clear evidence of a refusal of cover. In the alternative, it can be argued that there has been a refusal to quote and that is just as problematical.

For clarity, failure to disclose the refusal constitutes failure to disclose a material fact. That could well render any future insurance void or voidable.

It is never for a proposer for insurance to decide if a fact being considered for disclosure is material or not. That is a decision for the underwriters. Even if there is doubt about a fact it should always be disclosed. This is part of the concept of uberrima fides (utmost good faith) which applies to these situations.

IMHO disclose the facts of what has happened or leave yourself open to forming an invalid contract with it's consequences.

You weren't refused cover as no formal application was made.

And you only enquired with one company. In saying that, if you do make a formal application, there is a chance of being refused by other companies or having the premium increased as you are viewed as a higher risk than others.

I echo what DirectDevil said about disclosing material facts. There is no point in lying on the form and saying you are lighter than you are. If there is a claim and they see that you lied, they can refuse to pay out, leaving your family in a very difficult financial position.

The best thing to do is ring around and get an opinion on the whether you can get cover.

Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

Thank you everyone for your responses...