# mortgage protection policy for an alcoholic?



## gav (28 Jul 2004)

Anybody know of a life Insurance that deals with Alcoholics, it just that my brother inlaw wants to re-mortgage and he has premiums quoted 400% above the norm, he has been clean and sober for many years but that doesn’t seem to matter


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## daltonr (13 Aug 2004)

*Re: Alcoholics*

How do they know if he's an alcoholic or not?

I don't drink, and I know the theory is that you never stop being an alcoholic.  But if the guy has been sober for years then he shouldn't be telling anyone that he is an alcoholic.

Do they ask have you ever been an alcoholic? or do they ask are you currently an Alcoholic?  Is there are Database somewhere listing all the Alocholics?  

-Rd


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## Barry (13 Aug 2004)

*Not to be recommended*

daltonr,

The normal high moral ground of AAM regulars seems to disappear when it comes to seeking to pull the wool over the eyes of the insurance industry.

A proposer of a life assuarance contract has an obligation to disclose all material facts.  The fact that the insurer in this instance is seeking a 400% loading clearly comes from somewhere - there's an increased risk (statistically) that this person will die early. 

Non-discloser of material facts could result in non-payment in the event of a claim.  Falsifying a proposal for life assurance is not any different from tax fraud, IMHO, and that doesn't get much support on this platform, and rightly so.  The same should be case for your contribution.  

Regards, 

Barry


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## ajapale (13 Aug 2004)

*Re: Not to be recommended*

From New Ireland Proposal Form for Life Insurance



> 6. Have you ever had in-patient treatment for
> alcohol abuse, been given advice by a doctor
> to cease or reduce your alcohol consumption
> or taken drugs for other than medical reasons?


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## jem (13 Aug 2004)

*Re: Alcoholics*

A client of mine is an alcoholic. When we filleup the life asurance form we stated the fact and added in a letter from his doctor confirming that he had not had a drink in many years- 8 I think. While they did load him somewhat it wasn't anything near the 400%. I cant rember which company it was though


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## Brendan Burgess (17 Aug 2004)

*Re: Alcoholics*



> The normal high moral ground of AAM regulars seems to disappear when it comes to seeking to pull the wool over the eyes of the insurance industry.



Hi Barry - I don't think that there is any justification for this remark. 

I agree with your point though that people should make full disclosure to insurance companies. 

I heard someone from the insurance industry noting that only a few hundred driving endorsements are reported to them every year, so defrauding the insurance industry is a widespread practice.


Brendan


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## Brendan Burgess (17 Aug 2004)

*Re: Alcoholics*

gav

Your friend should take the quote into the mortgage provider. They may waive the requirement for life insurance. If he is single, he should not want mortgage protection anyway. If he is married, he has to decide whether or not the life insurance is worth paying.

Brendan


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## Guest (18 Aug 2004)

See this topic for some background on the mortgage protection life assurance "waiver" which is allowed in certain circumstances under the Consumer Credit Act:


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## ajapale (18 Aug 2004)

also look here 

and here 

for discussion on the mortgage protection waiver.

follow up: my friend has type I diabetes had no difficulty getting a waiver from his lending institution.

ajapale


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## ajapale (18 Aug 2004)

This page from the US msnmoney is interesting:

moneycentral.msn.com/cont...P35420.asp

short excerpt and some headings


> There are few subjects about a person's health that can be more sensitive than the use of alcohol. The lines between heavy drinking and alcoholism are blurry at best, but when it comes to life insurance, even a moderate drinker can have problems finding an affordable policy.
> 
> There is no doubt that heavy drinking can lead to health problems. According to the Society of Actuaries, abusing alcohol can take an average of 10 to 15 years off your life. The most frequent cause of premature death from alcoholism is heart disease, followed by cancer, accidents and suicide.
> 
> ...


]

ajapale


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## dearth (26 Aug 2004)

*Alcoholic*

gav - I dont doubt but if they have been clean and sober for a couple of years it should not be very difficult to get life cover at ordinary premium. Try Hibernian or Friends First. If the increased premium is with one of these there is something else that you are not telling us.


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