Declined large loan due to weight?

Lollyfla

Hi all,
I applied for large home improvements loan from credit Union and was refused. Reason given was that the underwriters wouldn’t cover me for cardiovascular issues ( credit union policy is normally the loan dies with you if something happens). I have no existing health problems, my gp filled in the health declaration requested by the credit union and had no concern. The only thing that flags with me is that I had to put my weight on one of the parts of the application form. The credit union won’t relase much information as they said the decision has come from a separate insurance company that they use. I will obviously be following it up but just curious to see has anyone any experience of it?

I'm 21 stone and I got 80k off them (the local Credit Union) recently.

What weight are you? Are you sure it's not age related?

Lollyfla

[Deleted User] wrote: »

I'm 21 stone and I got 80k off them (the local Credit Union) recently.

What weight are you? Are you sure it's not age related?

I’m only 36 so can’t be that. I’m 21 st aswell. Just shocked about it, never heard it happen before

kippy

I've seen this kind of thing happen before. Normally with a life insurance policy that would be a requirement for a mortgage. Generally with a policy such as that you can go to a few companies or a broker and maybe end up paying more as you tend to be a higher risk.
However with a CU, they use the one insurer (may be that same used by all CUs) and unfortunately if you don't fit their requirements the CU cannot insure the loan/your life with anyone else.
I am not sure if you have any option to insure the loan elsewhere and provide a written guarantee to the CU that the policy is to cover the loan. Most likely not I would think.
More on this with life insurance in general here:
https://lion.ie/life-insurance-medical-issues/life-insurance-weight-problems/

Jim2007

Lollyfla wrote: »

I’m only 36 so can’t be that. I’m 21 st aswell. Just shocked about it, never heard it happen before

Underwriters assess individual risk as they not the CU will be on the hook if anything goes wrong. They also look at collective risk and if they already have a few other doubtful covers at your CU then that will also play a role.

Mike9832

Lollyfla wrote: »

I’m only 36 so can’t be that. I’m 21 st aswell. Just shocked about it, never heard it happen before

It is strange

Did you put in it height as well?

If ur 6'6 it's a good weight

If your a very muscular build don't even have to be that tall

Addle

Are you a smoker?
I have known applicants turned down for insurance for health reasons, or pending routine test results.

Paul_Mc1988

Mike9832 wrote:

If ur 6'6 it's a good weight

At 6'6, 21 stone skips obese and goes to morbidly obese. If he's holding 14 odd stone of muscle I give credit where it's due but very few people would be. Id like to know why you consider that a good weight.

CIARAN_BOYLE

Deleted User wrote: »

I'm 21 stone and I got 80k off them (the local Credit Union) recently.

What weight are you? Are you sure it's not age related?

Every credit union has a different set of rules as they are separate bodies.

To the op ask the credit union if there's anything you can do to mitigate their concern.

You said your gp note said you have no existing problems. Have you had a medical and does the note mention that.

To quote an insurance and pensions agent I used to share office space with

"No existing problems doesn't mean anything unless you have checked if there are problems".

daheff

send them a letter asking for justification of their refusal

coylemj

daheff wrote: »

send them a letter asking for justification of their refusal

OP has explained it in his first post. CU policy is that they will only lend if the loan is covered by life insurance so the balance gets paid off if he dies with a balance outstanding. And they can't get cover for him, for the reason he has outlined.

It's broadly similar to a bank refusing you a mortgage because you can't raise a mortgage protection policy.

The J Stands for Jay

daheff wrote: »

send them a letter asking for justification of their refusal

They applied for a large loan that doesn't get repaid in the event of death. As they weigh over 133kg, the CU decided that the risk of nonpayment was to great for the level of interest.

anewme

Responses refer to the OP as a he, but I cant see that from the original post.