Mortgage protection even though I have cardiomyopathy

notaplumber

Hi.

On behalf of a friend who has cardiomyopathy(Thickening of the heart muscle) since her childhood years.... she along with her husband are currently in the process of buying a house. Mortgage is for €220,000 which they've been approved for by AIB.

An outstanding condition as per the mortgage 'Approval Letter' is their need to take our Morgage protection.

She has cardiomyopathy as stated above and is wondering if she'll get mortgage protection cover from any of the 6 main players in Ireland.


Anybody have any experience of this?

They're not due to move into the new property until mid-July 2017 as it's currently being built but she'd appreciate your opinion /experience if you have any.

Thanks

Henry Ford III

It may be an issue resulting in a loading, declination, or perhaps nothing at all. Depends on the severity and any increased mortality risk.

The only way to find out is to propose for cover. A good broker will be able to apply to all the insurers at once for terms.

phormium

Might be a good plan too to mention this to AIB and to ensure that if she is refused or loaded so high as to be unaffordable that AIB will allow a waiver to be signed for the mortgage protection. If they won't then maybe a change of lender will be necessary once you get the answers back from the life companies as some banks will allow this.

notaplumber

"Phormium",

I neglected to include in the original post that they have already been refused Mortgage protection by AIB due to her having Cardiomyopathy. (Their actual mortgage approval is from AIB, however AIB won't offer them Mortgage protection due to her medical condition).

This refusal by AIB was approximately 3 weeks ago and the couple haven't approached another 'Mortgage Protection' provider as yet, simply because they reckon they'll be shot down based on her condition.

However, I take your points onboard and will pass them onto the couple.

I suppose the main point of my post was to ascertain if indeed someone with the same condition has had any issue in the past with been approved for Mortgage Protection.

Thanks for your advice.

notaplumber

Henry Ford III wrote: »

It may be an issue resulting in a loading, declination, or perhaps nothing at all. Depends on the severity and any increased mortality risk.

The only way to find out is to propose for cover. A good broker will be able to apply to all the insurers at once for terms.

Cheers for that 'Henry Ford', Yes, unfortunately they have already been refused Mortgage protection by the very company that has offered them a Mortgage, but perhaps, as you state, other companies may offer cover albeit with a 'Loading'.

Cheers.

phormium

I would imagine if they already have a refusal then any company that will quote will be expensive.

They should immediately check that AIB will allow a waiver be used, if they do then this removes that problem from the mortgage.

Then they can concentrate on whether or not they can get any cover. Lets say for example just picking random figures that the mortgage was 200k and 200k of life cover was €400 pm with a loading (makey uppy figures), this 400 may be unaffordable but they might feel able to afford 200 or 100 or whatever. If the bank has accepted the waiver then they have the option of arranging a smaller level of life cover that they can afford, so say 100k of cover for the 200 p.m or whatever.

The banks requirements don't matter anymore if the bank has accepted the waiver but this means that they can have the comfort of some level of cover at least in place that they can afford.

Having said all that I think if they already have been refused I wouldn't hold out much hope of cover.

Trish56

Does she work and is her Income needed to qualify for the mortgage? If not AIB may accept a waiver. Protection products for AIB are provided by Irish Life so they need to check the other Life Companies however she now needs to disclose that she has been declined by Irish Life.

notaplumber

Trish56 wrote: »

Does she work and is her Income needed to qualify for the mortgage? If not AIB may accept a waiver. Protection products for AIB are provided by Irish Life so they need to check the other Life Companies however she now needs to disclose that she has been declined by Irish Life.

Yes, she does work and her income was required as part of the Mortgage approval. I spoke with her this morning advising her of what you said, ie she needs to advise on any future application that she has been refused Mortgage protection already.

Thank you

Henry Ford III

notaplumber wrote: »

Yes, she does work and her income was required as part of the Mortgage approval. I spoke with her this morning advising her of what you said, ie she needs to advise on any future application that she has been refused Mortgage protection already.

Thank you

Insurers keep a centralised register of rated and declined risks, so she'll have no choice.

notaplumber

phormium wrote: »

I would imagine if they already have a refusal then any company that will quote will be expensive.

They should immediately check that AIB will allow a waiver be used, if they do then this removes that problem from the mortgage.

Then they can concentrate on whether or not they can get any cover. Lets say for example just picking random figures that the mortgage was 200k and 200k of life cover was €400 pm with a loading (makey uppy figures), this 400 may be unaffordable but they might feel able to afford 200 or 100 or whatever. If the bank has accepted the waiver then they have the option of arranging a smaller level of life cover that they can afford, so say 100k of cover for the 200 p.m or whatever.

The banks requirements don't matter anymore if the bank has accepted the waiver but this means that they can have the comfort of some level of cover at least in place that they can afford.

Having said all that I think if they already have been refused I wouldn't hold out much hope of cover.

She wasn't aware of the possibility of a 'Waiver'. I've informed her of that and she'll check with AIB today.


Thanks again, good gen.