# Mortgage Protection - Previous Suicide Attempt



## Ralph08 (26 May 2008)

Hi all,

I am hoping someone out there can point me in the right direction.  A friend of mine is going through the process of buying a new house and is due to draw down mortgage very soon.  Last year she went through a tough time and took an overdose.  This was a once off cry for help and all the docs agreed that it was v unlikely to happen again.  The problem is she is now being refused mortgage protection and the bank won't give her the mortgage without it.  Is it possible that any of the insurance companies will give you cover but exclude death by suicide? She hasn't been offered this but would definitely accept those terms.  She has a broker but I don't think he is very helpful so i've advised her to get a good broker.  Does anyone know of any insurance companies or brokers that specialise in the 'non-standard' type risks?

I would greatly appreciate any help you could give me as she is starting to stress now that the house sale will not go through.

Thanks


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## rmelly (26 May 2008)

I think Mortgage Protection policies specifically exclude suicide by default - i.e. the policy wouldn't pay off the outstanding mortgage balance.


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## eileen alana (26 May 2008)

rmelly said:


> I think Mortgage Protection policies specifically exclude suicide by default - i.e. the policy wouldn't pay off the outstanding mortgage balance.


 

Correct me if I am wrong but isn't that just for the first two years after the policy is taken out.


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## ClubMan (26 May 2008)

Ralph08 said:


> The problem is she is now being refused mortgage protection


How many underwriters has she tried?
Has she tried a broker?


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## LDFerguson (26 May 2008)

ClubMan said:


> Has she tried a broker?


 


Ralph08 said:


> She has a broker but I don't think he is very helpful so i've advised her to get a good broker.


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## Ralph08 (26 May 2008)

Hi,

As far as I know she has just tried 1 broker and i think he has tried a few insurance companies.  I don't think he is working hard enough for her though, I really didn't think it would be this difficult.

Most mortgage protection policies do exclude suicide but as already mentioned this is just for the first 2 years.  I don't see the problem in having this exclusion on for the life of the policy.  Perhaps the insurance companies won't do this because there are some events that are not obviously suicide (eg some single vehicle car accidents) and they don't want the risk of something like this happening?  Not sure but if anyone could shed some light i would be very appreciative.


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## LDFerguson (26 May 2008)

Any life assurance policies that I've seen do exclude suicide but only for a year or two after the policy start date, as was suggested by Eileen above.  

I suspect that the problem may be that the suicide attempt was relatively recent.  I have arranged life assurance cover for clients with depression, including bi-polar depression, but have never had an application from someone with a suicide attempt in the year before application.  

Has she been discharged from medical/psychological care yet?  Is she receiving ongoing treatment or taking medication at present? 

I would doubt that any life assurance company will issue a policy with a long-term suicide exclusion, as prolonged chronic depression, if not successfully treated, can lead directly or indirectly to other life-threatening illnesses. 

I would suggest that your friend gives all relevant details to her broker (any prior history of depression, extraordinary circumstances contributing to last year's suicide attempt, treatment last year, ongoing treatment) and asks him/her to simply ring around ALL the life assurance companies with whom s/he holds agencies.  Assuming no other health issues, the broker is likely to get an idea within a few phone calls whether or not s/he can arrange cover.


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## Soldier (26 May 2008)

how did they even find out about the suicide attempt ? isnt that confidential


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## LDFerguson (26 May 2008)

Soldier said:


> how did they even find out about the suicide attempt ? isnt that confidential


 
All life assurance applications will contain questions about any recent medical treatment and the reasons for it.


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## Ralph08 (26 May 2008)

Liam,

Thanks for your response.  I will pass on everything you have said to her.  Unfortunately it is not looking too good.  She didn't have to have any follow up treatment and (I can't speak for her but as far as i am aware) she wasn't depressed.  It was a shotgun reaction to a particular event.  The doctors had no concern that it would happen again.  Unfortunately although it is obvious to us I suppose its different when it is written down in black and white for the insurance companies, they must weigh up the risk regardless of her personal circumstances.

I will get her to contact her broker and do what you have advised.  Again many thanks for your response.


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## KerryG (26 May 2008)

Switch banks for mortgage, some banks allow you sign a waiver if you cannot get life cover.


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## LDFerguson (27 May 2008)

KerryG said:


> Switch banks for mortgage, some banks allow you sign a waiver if you cannot get life cover.


 
As has been said before on Askaboutmoney, no bank will waive the requirement for life cover for all loans.  They will look at the merits of each individual case - is there a second borrower, does the loan represent a high percentage of the property value etc.  

Just because a bank might agree to waive life cover for one customer, it doesn't follow that they will agree to waive for another.


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## KerryG (27 May 2008)

This may be the case, however in 20+ yrs with a particular mortgage provider I have never had a waiver queried or refused by the company in any circumstance where I had a letter from the life company refusing cover.


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## Ralph08 (28 May 2008)

Hi,

I just want to update you all as you have been very helpful.  The bank has agreed to waive the need for life cover for my friend.  She is delighted.  Hopefully she can apply for this in a few years time and will be successful.

Thanks for all your comments

Ralph


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