# Refused Life assurance



## knightfever (1 Aug 2009)

I have been approved for a mortgage but cannot draw down until I get life assurance. I have been refused Life assurance because I am on dialysis and waiting for a transplant. Is there any way round the life assurance, I'm sure I'm not the only person with a medical condition who wants a mortgage. Has anyone had this problem?


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## mercman (1 Aug 2009)

Have you tried Term Assurance which might be possible ?


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## knightfever (2 Aug 2009)

I'll give it a go, thanks for the suggestion


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## Ned_ie (19 Aug 2009)

Knightfever - if you cannot get life cover then the bank CANNOT request that you have it. There is a provision in one code or other that says you do not need it. Think it is the consumer protection code. Should know it as I did the exam in it in January! As far as I remember it says where the cover is unavailable or where the cost is excessive then the cover cannot be requested.

Any problems let me know 

adrian


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## Darthvadar (19 Aug 2009)

KF,

I could probably understand a slight loading on your policy, but a blanket 'no' is not acceptable... My mum's in kidney failure, and on dialysis too, so I understand the barriers you face....

If you are refused cover due to your kidney failure, that is Direct Discrimination on the grounds of Disability under the Equal Status Act... I suggest you have a chat with the Equality Authority... http://www.equality.ie/

If you do decide to pursue the matter under the Equality Leglislation, the all the relevent information and forms are available here... 

Best of luck...

Darth...


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## GreenQueen (19 Aug 2009)

Ned_ie said:


> As far as I remember it says where the cover is unavailable or where the cost is excessive then the cover cannot be requested.



Your solicitor should be able to assist you on this.  You need to sign a waiver stating that you will not be taking life assurance on the mortgage and you are aware of the consequences of this.

Darth - I also received a blanket "no" many years ago for different reasons.  7 years on I can get cover but am loaded excessively (250%) so it's prohibitive.


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## Darthvadar (19 Aug 2009)

It could be worth investigating the Equality route, GreenQueen if you feel that the horrendous loading you have is as a result of any of the nine grounds covered by that legislation...

I know of one case where a person was loaded by 250% because of a heart condition that had been repaired... They made an Equal Status complaint on the Disability ground...

Before the case was heard, the insurance company reduced the loading to 25%... BIG reduction!... I think a reasonable conclusion is that the insurance company (a) Couldn't justify the premium to a tribunal, and/or (b) Didn't want to take the chance of losing and the resulting publicity... Either way, it worked!...


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## Sumatra (20 Aug 2009)

Life assurance rates are based on the science of mortality. Equality legislation doesn't alter mortality rates.


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## Friday (20 Aug 2009)

I suggest you give the letter from the insurance company declining cover to your mortgage provider. This will overcome the legal requirement for life cover on the mortgage......however the lack of life cover may impact on your mortgage lenders loan offer. Good luck.


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## Ned_ie (21 Aug 2009)

Friday said:


> I suggest you give the letter from the insurance company declining cover to your mortgage provider. This will overcome the legal requirement for life cover on the mortgage......however the lack of life cover may impact on your mortgage lenders loan offer. Good luck.


 

It shouldn't impact as under the law they cannot force you to have life cover if it has been declined to you.


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## Sumatra (21 Aug 2009)

Ned-ie I have known many lenders who have refused a loan because the person can't get life cover.


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## VOR (8 Sep 2009)

Ned_ie said:


> It shouldn't impact as under the law they cannot force you to have life cover if it has been declined to you.


 
They cannot force you to have life cover but the bank can, and often do, decline a mortgage if you do not have life cover. They are perfectly entitled to do so under responsible lending terms and conditions.

Oh and its the Consumer Credit Act 1995.


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## jonq74 (8 Sep 2009)

earlier in the year i went to all the major banks giving mortgages and everyone of them said they would under no circumstances give a morgtage without life insurance in place. the act states the only exception is if you are over 50. so the banks can refuse to give the mortgage and unfortunately you have no comeback.


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