Couple I know are renting. They recently married. she used to have part ownership of a house with her sister. the sister bought her share off her when she got married herself. the sisters would have had life assurance with that mortgage.
When she bought her out, her sister advised her she might be better to keep the life assurance policy as she suffers from depression and is on medication and may not qualify for life assurance if she cancelled and applied later. (guesswork there, whether true or not)
Now the renting couple are looking for a house, I was suggesting she may want to cancel the current LA policy to maxmise any savings so 2 questions here
1. would any current medication jeopardise the ability to get life assurance which in turn would jeopardise the chances of getting any new mortgage (I understand its all relative to the situation) is there a general rule of thumb on that as to what medical conditions would govern decision on the granting of an LA policy that they could look up?
2. if she was unable to take out a new policy, would the current life assurance policy qualify instead as its for roughly same amount as what theyre going for, so she'd be better to keep it going?
When she bought her out, her sister advised her she might be better to keep the life assurance policy as she suffers from depression and is on medication and may not qualify for life assurance if she cancelled and applied later. (guesswork there, whether true or not)
Now the renting couple are looking for a house, I was suggesting she may want to cancel the current LA policy to maxmise any savings so 2 questions here
1. would any current medication jeopardise the ability to get life assurance which in turn would jeopardise the chances of getting any new mortgage (I understand its all relative to the situation) is there a general rule of thumb on that as to what medical conditions would govern decision on the granting of an LA policy that they could look up?
2. if she was unable to take out a new policy, would the current life assurance policy qualify instead as its for roughly same amount as what theyre going for, so she'd be better to keep it going?