life insurance info

Leitrim86

hi, recently applied with my wife for a mortgate of 60,000 on a property worth 195,000 so ltv would be 32%.

however they have requested we get a life insurance policy in place for the 60k. however my wife is due to have a hip replacement next month she has very mild osteoarthritis and they have postponed cover until she's recovered even though everything else health wise is pefect. however in my case they didn't need any gp info on me. just wondering would it be possible to just put myself on the cover until all is sorted and then add wife on afterwards.what are our options we really dont want to lose our dream house

ssmith6287

Would you be in the position to take the mortgage out I just your name?

Leitrim86

ssmith6287 wrote: »

Would you be in the position to take the mortgage out I just your name?

it would cause a lot of delays. would it be possible that we sign a waiver for just me to be covered until after wife's op

ssmith6287

I doubt it if she's a signature on the mortgage. Can the bank not over you cover? It might be expensive but you can quit it as soon as the mortgage is drawn down

JimsAlterEgo

ask for insurance minus this condition, can be done I think

phormium

The bank has the option under the consumer credit act 1995 (which is the one that compels them to make sure life insurance is in place for the sum of the mortgage) to offer a waiver to people who meet certain conditions one of which is being declined or postponed life cover.

However not all banks operate this policy so check with your bank if both of you can sign the waiver form based on her postponed life cover, it confirms that you both know she has no cover and are both willing to go ahead with the mortgage without her cover.

Leitrim86

phormium wrote: »

The bank has the option under the consumer credit act 1995 (which is the one that compels them to make sure life insurance is in place for the sum of the mortgage) to offer a waiver to people who meet certain conditions one of which is being declined or postponed life cover.

However not all banks operate this policy so check with your bank if both of you can sign the waiver form based on her postponed life cover, it confirms that you both know she has no cover and are both willing to go ahead with the mortgage without her cover.

thanks for that, bank is bank of ireland wonder what there procedure is

Henry Ford III

Ask the lender

Leitrim86

Henry Ford III wrote: »

Ask the lender

I fully intend to just wondering had anyone a similar experience

Leitrim86

JimsAlterEgo wrote: »

ask for insurance minus this condition, can be done I think

thank you. Will try

phormium

The lender will have come across this lots of times, it's not that uncommon that people are actually totally refused cover or as in your case postponed for some reason. Insurance companies are cautious by nature and are going to wait until any existing situation is dealt with so they know exactly what risk they are taking on.

Simplest solution is for the bank to allow the waiver, as the amount of the mortgage is low and if you are the main earner it really should be very straightforward unless for some reason BoI have a policy against it.

If they have there are other banks that will have no difficulty with it so maybe you might need to consider changing lenders.

Trish56

Agree with all the previous posters - If your earnings cover the mortgage then you can ask that they waive cover for your wife. Does your wife have any other life policies that she can assign to them?