Refused Life Cover

J

jboy

Guest
I've recently been refused Life Cover due to an underlying medical condition. I understand that once you've been refused this will appear on a central data base (it's unlikely I will get cover from another provider) What options are open to me now? I want to re-mortgage and wonder can I sign a waiver?
 
jboy
I'm in the process of buying an apartment and I've also been refused life cover. Did the insurance company immediately refuse you? With my application it went to the chief medical underwriter and then to a re-insurer company in the Uk who made the final decision to refuse me. I have been told that most insurance companies would use the same re-insurer company - so therefore they will have your information. The whole process was a nightmare though - it took them over 3 weeks to give me an answer (and I had to sign contracts within 2 weeks!) Anyway, Ulster Bank saved the day and approved us for a mortgage waivering the life cover for me. All we have to do is sign the waiver form - so maybe give them a try?
 
If you cannot get life cover or a "reasonable" quote due to medical issues then lenders may waive the normal requirement under the Consumer Credit Act for owner occupier mortgage holders to have such cover. Obviously there are risks for the next of kin inherent in proceeding with no life cover but in some cases it may be the only option if the lender is amenable.
 
My husband too was refused life cver and we signed a waiver for our previous 2 mortgages and it wasn't a problem. THere is the risk though if anything were to happen to him that I would still be left with the mortgage but fortunately my salary would cover this on my own at present.
 
If you have been refused life cover you just need to sign a waiver stating that you are fully aware that if you were to die that your mortgage won't be repaid.

You would be taking a risk but if you have been refused cover and want to proceed with the mortgage it may be your only option. You could still re-apply to another company, just because one company has refused you it doesn't mean that all will - some have stricter underwriting guidelines (thats how they can offer lower standard rate premiums). Expect to pay more than the standard rate as its likely you will be loaded but at least you will have peace of mind that if something was to happen you wont be leaving a mortgage behind for your family to pay.
 
I had a hard time convincing Insurance companies to give me life cover. Reason they hesitated was that i went for a testicular scan after a friend of mine was diagnosed with cancer and asked us all to get checked out. I thought i was being diligent they thought me a risk. Go figure!
 
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