Refused Life Assurance

S

salopian

Guest
I am in the process of buying a house and have a mortgage offer with The Bank of Ireland but I have been refused Life Assurance by 4 companies. Contracts have been exchanged and unless I can get Life Assurance or get the bannk to waive it, which they are refusing to do, I could lose my deposit of €22,000. I would really appreciate some help as I am panicing.
 
Medical grounds but mainly 'a history of depression' which was in fact a one off incident over 3 years ago which did not result in hospitilisation. I had no previous history psychiatric problems and none since. I have never see a psychiatrist or been given medication.
 
It seems a bit harsh that you should be refused life assurance cover for one incident of depression as you describe, unless it was a very serious one, e.g. a suicide attempt.

Did the broker / life assurance salesperson go through the application form carefully with you, making sure to present all the relevant facts up-front, particularly all the positives -
"I had no previous history psychiatric problems and none since. I have never see a psychiatrist or been given medication."
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Hi Salopian!
I would go along with what Liam says.
Make sure the broker has agencies to more than one Life Insurance company as
allot only have limited access to products.
The Way you word the application form is very important. Also if you do not disclose all the required info the Insurance company will retract the cover on a technicality .

I hope it works out for you,

Mike Lavelle
[broken link removed]
 
salopian said:
I am in the process of buying a house and have a mortgage offer with The Bank of Ireland but I have been refused Life Assurance by 4 companies. Contracts have been exchanged and unless I can get Life Assurance or get the bannk to waive it, which they are refusing to do, I could lose my deposit of €22,000. I would really appreciate some help as I am panicing.
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Dont be bullied by the mortgage companies. I was in a similar position due to medical conditions and was refused insurance. As you automatically go on a register you will be denied by every subsequent company - especially as you have to declare the answer on the next application you make. I was told by my bank that there was a provision in the consumer credit act ( IANAL ) that forbids a financial institution to refuse a mortgage whereby the applicant has been turned down by three life companies. I duly applied and was turned down by a further two companies and my bank issued the loan without life cover after this process.

You should also look to use of Death in Service benefits as security - and particularly if you leave your current employer most Death in Service plans allow you to continue the life cover WITHOUT medical evidence. I have done this twice in the last 8 years and am now one of the most insured persons in the country(!) - without medical evidence.


Go back and ask them about the three refusals - and then look at your death in service plans.

Best of luck --- 22K is a lot of money.
 
salopian said:
Medical grounds but mainly 'a history of depression' which was in fact a one off incident over 3 years ago which did not result in hospitilisation. I had no previous history psychiatric problems and none since. I have never see a psychiatrist or been given medication.
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I assume you delcared this medical history without the support of your GP. I myself declared an investigative procedure for cancer and the alarm bells rang with the insurer. This procedure was done solely because there is a history in my family. I got my doctor to confirm in writing that there are no further tests to be done (that it was a once off)etc and got my life policy.
 
danash said:
As you automatically go on a register you will be denied by every subsequent company - especially as you have to declare the answer on the next application you make.
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There is a register of adverse life assurance decisions which is shared between participating life assurance companies. You agree to be added to it when you sign the application form.

But it's not true to say that if one company declines, that all will. The register serves to inform life companies of the adverse decision, in case you foolishly decided not to disclose it.

Each company will make their own decision. I've seen countless examples where one company declines and others accept.

danash said:
I was told by my bank that there was a provision in the consumer credit act ( IANAL ) that forbids a financial institution to refuse a mortgage whereby the applicant has been turned down by three life companies.
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This is not true either. The Consumer Credit Act 1995 does have a provision which allows a lender discretion to waive the life assurance requirement on a homeloan where the applicant is over 50, cannot get life cover at all or cannot get cover at a reasonable premium. But it only offers the lender discretion - if the lender doesn't want to lend without life cover, they don't have to. They will look at each application on its own merits. In danash's case, they evidently decided to proceed without life cover. That doesn't mean they will in all cases.

danash said:
You should also look to use of Death in Service benefits as security - and particularly if you leave your current employer most Death in Service plans allow you to continue the life cover WITHOUT medical evidence. I have done this twice in the last 8 years and am now one of the most insured persons in the country(!) - without medical evidence.
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It should be noted that you cannot use Death in Service benefits as security for a loan or assign them in any way. However, if you have them, they might be useful in convincing your lender to waive the requirement for life cover as mentioned above. Death in Service benefits can only be converted to a personal policy if the scheme offers a continuation option AND you're leaving your employment. If you're taking on a new mortgage, I presume you're not leaving your employment.
 
Salopian, as a last resort, apply to First Active.
They will usually waive the mortgage protection requirement where you have been declined by the insurer.
 
hi salopian,

sorry to hear you are stressed. i too was refused life assurance by two life assurance companies in May (one who i had an existing mortgage policy for my last home) but mine was for weight to height ratio reasons. i thought it was the end of the world as i thought i would lose my 34k deposit and went through all the stress you did, but Bank of Scotland Ireland agreed to waive the life assurance.

did your broker confirm bank has refused to waiver? can you contact the lender directly.


please keep us posted
 
This is where the quality of broker is paramount. The 4 companies that you applied to may very well have the same reinsurer. A decent broker who has been in the business a while would be able to ring an underwriter with your history and be able to get an idea of whether it is a runner or not however than was then and this now...we live in a different world.
 
Firts post and its a doozy

I had a heart attack 3 weeks ago and had 2 stents put in , everything else is ok. I was wondering how difficult, or is it possible to get life cover for a new mortgage on a new house with this incident in my history.

OK stop laughing.

I'm serious.:)
 
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