No mortgage protection after childhood cancer?

P

PROVRAC

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Hi all,

My partner and I are in the process of buying a house. We've been approved for the mortgage, put a deposit down and are in the process of trying to get mortgage protection and life insurance. My partner had non-Hodgkins lymphoma when we was 11, so 26 years ago. He has been denied life insurance on this basis and now it looks like he will be denied mortgage protection. We expect an answer this week on the mortgage protection. Does anyone have any suggestions on what we can do? If he is denied does this mean we can never buy a house in Ireland?
 
Don't worry, the banks allow an exception for these situations. Speak to them. You also might go to an insurance broker who may be able to help you get life insurance as they know their way around what companies will or will not insure.
 
There is a specialist insurer that uses Lloyds of London to underwrite cases that can't be covered using traditional insurance companies. You can expect to pay a much higher premium though as it is higher risk case.

Otherwise, the banks should allow the mortgage without mortgage protection because you can't get cover.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Thanks Steven. Very helpful. We were told by our mortgage broker this morning that we should get a definite answer this week and if it is no then I'll look into the specialist insurer.
SBarrett said:
There is a specialist insurer that uses Lloyds of London to underwrite cases that can't be covered using traditional insurance companies. You can expect to pay a much higher premium though as it is higher risk case.

Otherwise, the banks should allow the mortgage without mortgage protection because you can't get cover.
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If you do not have children, then you don't need life insurance.


Life insurance is only necessary when one person is financially dependent on the other. I assume that is not currently the case.

Even if you have children, it might not be the case e.g. you might have life cover at work.


You would be much better off using the premium to pay down the balance on the mortgage.

Brendan
 
Brendan Burgess said:
If you do not have children, then you don't need life insurance.
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Quite a sweeping statement Brendan.

Life insurance has two purposes:

  1. Pay off debt on death
  2. Replace lost income
Even if you have cover that will pay off the mortgage, you may have other debts that the surviving spouse may struggle to pay off. I also do a lot of cover for young couples who are saving for a mortgage. They take out the mortgage protection cover whilst saving, so if something happens to one of them (we can be in a car accident at any time), the funds are there for the surviving spouse to buy a home they would be unable to afford on their own.

Not everyone gets paid the same. As a couple, you enjoy a lifestyle based on joint incomes, not just your own. If one partner earns significantly more than the other, they may want to ensure that the surviving spouse can enjoy a reasonable lifestyle if they die.

Life cover at work is limited in 2 ways:

  1. The maximum lump sum payable is 4 times salary. Anything over that is used to purchase an annuity.
  2. What if you leave? The cover is linked to the job, if you leave the cover finishes too.
Then there's the comfort money. Losing your husband or wife is probably one of the most emotionally damaging times you will ever experience. Having a few quid to help you take some time out cannot be discounted.

The need for life cover should be looked at specific to your personal situation.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)
 
Either way whatever you believe about insurance the bank can insist on it which affects the mortgage, if so you need to find a bank that will accept a waiver if you are unable to get it or it is too expensive.
 
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