Life insurance - previous illness

A

AllHeart

Guest
My partner and I took out life insurance linked to our mortgage 3 years ago. Since that time he has been diagnosed with liver disease but has been through treatment sucessfully. We are thinking of relocating and taking a new mortgage, my question is - can we continue with the old policy or will a new mortgage lender request a new policy? I have called our insurance company but their reply was vague. I am afraid that if we go for a new policy we will be refused based on my partners prevoius medical history, which may affect our mortgage application.

Any thoughts appreciated.
 
Once the amount of cover on the existing policy and the term of the policy cover the new loan, there is no reason why your existing policy will not suffice for the lender.

The only problems you may run into is if the loan is for a greater amount than the sum assured on the policy or the term of the loan is greater than the remaining term on the policy. Another problem may occur if you have a decreasing policy but are applying for an interest only loan. In any of these cases, a lender would want you to propose for a new policy that meets their requirements.

Hope this helps.


www.CheaperLifeAssurance.ie
 
You should also find out if your policy has a guaranteed insurability option or convertible option. This will allow you to change the amount of life cover without having to provide any further medical evidence.
 
Thank you both. That answers my question perfectly.
 
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