Contracts signed, but can't get life cover

Hi,

I am in the process of completing the purchase of an apartment. I signed contracts and paid relevant deposits about 3 weeks ago and then went about securing necessary life cover in order to draw down funds.

I applied with Zurich Life as I have a separate PRSA in place with them. Not thinking there would be any issue with getting life cover, I was informed this past week that they have declined my application. In a panic, I got in touch with an independent broker (which in hindsight I should have done in the first place) who then submitted applications to both Irish Life and New Ireland. Irish Life came back the following day and declined me also, I am still waiting for word back from New Ireland. At this stage, I doubt I'm going to get cover as I know that info is shared between underwriters.

My guess is that they are refusing to grant me cover based on past medical history, specifically that I had cancer when I was a teenager. The most annoying part of this is that my last treatment of any kind for this was in 1996 and I was actually given a full discharge from follow ups/check ups from my consultant in Aug, 2010 (i.e. you never have to come back here again!). So despite being cancer free for over 16 years, being given a full medical discharge by my consultant over 2 years ago, it seems that this is still somehow an issue for the underwriters (I am going to ask my GP to request written confirmation from Zurich as to the reason for me being declined).

I know that if I get a refusal from New Ireland that I can in theory request a waiver from my bank on having life cover but as I am a sole borrower on the mortgage, I am doubtful they will allow this waiver. I have read some similar type posts here but has anyone had any recent experience of a similar situation re: life cover? If this whole thing falls through I am going to be left in a horrendous position.

Who is your bank? Several of the banks allow this under the waiver system, yes it is not ideal if you are a sole income earner with dependants but you may have no option. If your lender does not allow waivers then start applying for mortgage elsewhere to one who does, only option!

I'm with AIB. I am the sole income earner but do not currently have any dependants so not sure where that leaves me. At this stage I will probably lose my deposit as I have signed contracts. Hindsight is everything but I honestly did not think getting life cover would ever be a problem. Its turning into a genuine nightmare.

Life Insurances company decision will have been made based on available medical information furnished to them by those who attended you. First thing to do is ask Zurich to write to your Dr. giving their reasons for refusing cover. Once you have this you will in a stronger position to understand reasoning behind decision and gather further medical information if needed. In some cases once proposer is cancer free for a period of 5 years they do grant cover however usually at a higher premium for a specified time.

Ask AIB tomorrow if they will accept waiver, if not start immediately applying elsewhere to any bank that will, maybe try a broker.

Leroy67 is correct. You will need to find out exactly why Zurich declined you ( I recently processed a case with them for a client that had cancer previously and received standard rates, so there may be a combination of factors contributing to the decline). If all else fails ask your broker to try Pulse Insurance, a specialist life company that will often quote clients that can't get cover elsewhere.

Thanks for all the replies. I am in process of requesting my GP to write to Zurich to request further information on reason for turning me down. Will also get in touch with AIB.

Cheers.

I was in a similar situation as you watpoae, and signed a waiver as assurance companies like Irish Life refused me. I applied last year via 123.ie just to try as I have dependants now and to my big surprise Zurich accepted me, not even a premium.

Hi OP,

If you ring Zurich they will write to your Dr. Will probably be quicker this way

I got mortgage protection from Caledonian Life with some, but not excessive loading due to medical history. This was on advice from labrokers.ie (based in greystones) who talked me through my options on the phone.

watpoae said:

I'm with AIB. I am the sole income earner but do not currently have any dependants so not sure where that leaves me. At this stage I will probably lose my deposit as I have signed contracts. Hindsight is everything but I honestly did not think getting life cover would ever be a problem. Its turning into a genuine nightmare.

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I don't want to make you feel any worse, but in theory the vendor can also sue you for non-completion. That said, their legal advisor would need to think it was worth their while doing so.

Carry on following the advice given above. But if that fails, there's another possible solution.

(1) Apply to a difference life insurance company. Lie about cancer and any other health history. Receive policy document from life insurance company. It's not worth the paper it's written on because you lied.

(2) Produce policy document to AIB who issue the mortgage cheque.

(3) I believe that you should be able to get cover in the normal way eventually, given the length of time since you last had treatment. I'd imagine that insurance companies may want to see a bit of extra time passing since the August 2010 discharge. There's also the possibility that the insurance companies aren't aware of the August 2010 full discharge. Worth checking.

Anyway, in due course you should be able to get cover properly at which time you can cancel the dud policy.

It's ethically questionable, but who's the loser?

(a) Insurance company don't care as they've collected premiums for nothing and wouldn't pay a claim.

(b) You get out of a hole.

(c) In the unlikely event that you die of cancer before you've managed to secure replacement life insurance, AIB can repossess the house.

Nice theory but it won't work, there is a central register insurance companies use and it will show op was turned down by one company already.

Other than that obvious flaw I would nearly go with it as a plan if the bank didn't allow a waiver.

wbbs said:

Nice theory but it won't work, there is a central register insurance companies use and it will show op was turned down by one company already.

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In practice many insurance companies can be very slow to update the AR register.

Might work so!

Has worked many times in the past. People who know they will be refused just apply for a dud policy, drawn down the monies and then cancel the policy.

watpoae said:

At this stage I will probably lose my deposit as I have signed contracts.

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Did your contract not have a clause to cover you if you couldnt draw down the mortgage or get life assurance? Our solicitor put it in without us asking him to

Id start applying with every company going if I were you while you try to get zurich to play ball

Marianne said:

I don't want to make you feel any worse, but in theory the vendor can also sue you for non-completion. That said, their legal advisor would need to think it was worth their while doing so.

Carry on following the advice given above. But if that fails, there's another possible solution.

(1) Apply to a difference life insurance company. Lie about cancer and any other health history. Receive policy document from life insurance company. It's not worth the paper it's written on because you lied.

(2) Produce policy document to AIB who issue the mortgage cheque.

(3) I believe that you should be able to get cover in the normal way eventually, given the length of time since you last had treatment. I'd imagine that insurance companies may want to see a bit of extra time passing since the August 2010 discharge. There's also the possibility that the insurance companies aren't aware of the August 2010 full discharge. Worth checking.

> both companies were made aware of Aug, 2010 discharge date. It may be that they may grant cover in a few years time but I've heard of people who have had cancer in past 5 years and been granted cover so who the hell knows how it works!

Anyway, in due course you should be able to get cover properly at which time you can cancel the dud policy.

It's ethically questionable, but who's the loser?

(a) Insurance company don't care as they've collected premiums for nothing and wouldn't pay a claim.

(b) You get out of a hole.

(c) In the unlikely event that you die of cancer before you've managed to secure replacement life insurance, AIB can repossess the house.

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Should have word back from New Ireland Assurance on Mon/Tues re: cover. Don't expect them to grant me cover as I've been turned down by two other companies.

I did speak with AIB and informed them of the current situation. They said that once I have been refused cover from three separate insurance providers, I can apply for a waiver. I also spoke to Financial Ombudsman who directed me to read up on the Consumer Credit Act 1995, Section 126. It basically says that the clause for having life cover can be ruled an exception in cases where you are a deemed to be part of a "class of person" deemed not to qualify for life insurance cover. At this stage I'm working on assumption of having to go down the waiver route.

I am aware that vendor could potentially sue me for non completion. That's their right but as it stands, I won't have much more to give them past the deposit.

If I had just lied in the first place, none of this would even be an issue.

True, but you would be paying for pointless life cover that wouldn't pay out. AIB are going to allow you sign the waiver so that's the best solution at the moment.

wbbs said:

True, but you would be paying for pointless life cover that wouldn't pay out. AIB are going to allow you sign the waiver so that's the best solution at the moment.

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Yes, the life cover would be null and void but I at least would be able to draw down funds and meet my completion date. Anyway, hindsight is great after the fact, hopefully I can get waiver with AIB and put an end to this whole sorry saga!

Marianne said:

But if that fails, there's another possible solution.

(1) Apply to a difference life insurance company. Lie about cancer and any other health history. Receive policy document from life insurance company. It's not worth the paper it's written on because you lied.

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watpoae said:

If I had just lied in the first place, none of this would even be an issue.

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For all but very low level life cover, insurance companies will usually look for at least a report from your GP and a GP's report plus a medical at higher amounts of coverage. Unless your GP is willing to lie for you too, this really doesn't stand a chance of working and you will have been caught in a very obvious lie.