Q: What are the insurance companies doing to help Coronavirus patients?

Not much because they don’t see a problem.Hear me out. Insurance underwriting is data-driven . The underwriters have not seen a massive spike in the number of clients they are postponing so they don’t think it’s a big issue. What they’re failing to realise is that they are only seeing data from fully medically underwritten applications that they can postpone or decline after receiving a full application.They can’t take account of the applications coming through the broker market where the broker is telling the client they won’t be able to get cover due to COVID19. Every day, I’m crushing the dreams of clients with Type 1 Diabetes or who have a BMI of 40+ but the insurers are not seeing this. And if I’m telling clients not to apply, there are other brokers doing the same things. All this adds up to a lot of people who can’t get cover.

Q: Does an insurer have to offer me mortgage protection at some price?

No, which I think is unfair but in fairness, it’s the bank that’s insisting you take out cover before they give you a mortgage, not the insurer.If you can’t get cover, the bank should be forced to offer you a waiver in line with the Consumer Credit Act.The bank will get your house if you die – surely that’s enough security.Did you know that mortgage protection isn’t compulsory in the UK?So why are we so quick to protect the banks in Ireland.I’d like to see the banking industry do the right thing and loosen up their criteria for granting a waiver to those who can’t get cover due to COVID-19. Hopefully, COVID-19 is nearly over so really it will only be a temporary measure until normality returns and those people affected by COVID19 can get cover.But until then…If you have been declined for mortgage protection and can’t buy a family home because of it, you have to cause a ruckus.Call Joe Duffy.Contact your local representative.March the streets!The revolution starts at dawn.Failing that, a GoFundMe page seems to be the way to go.

Q: If I get vaccinated, can I get mortgage protection?

It depends on the insurer, for some it won’t make any difference as they argue:There’s no data (yep, insurers love data) available for either the longer-term risk of COVID (long COVID for example) or the risk associated with the vaccination.There’s no data for general take-up rates (i.e what percentage of the population will get vaccinated)Nor is there any data or for how long the vaccine will remain effective.Therefore the reinsurance companies (the ones who call the shots) are being very cautious about how the vaccination will affect their position.For others insurers, if someone has been fully vaccinated then they can consider acceptance of higher-risk individuals. If you are “high-risk”, it’s going to remain difficult to get cover.

Q: Does COVID19 affect life insurance for healthy people?

Thankfully no, if you’re in good health, it’s business as usual.And even if you have a mild underlying health issue, on the assumption it’s not COVID19 high-risk, then you’ve nothing to worry about.

Question 1

Why is COVID19 affecting Life Insurance?

Accepted Answer

Coronavirus (COVID-19) can make anyone ill. But for some people, the risk is higher.According to the HSE, there are 2 levels of higher risk:very high risk (also called extremely vulnerable)high risk1. Very High RiskIf you fall into this category, then you’re going to struggle to get life insurance or mortgage protection.are over 70 years of age with any underlying conditionshave had any type of transplanthave a history of advanced cancerhave kidney diseasehave cystic fibrosishave severe respiratory conditions (severe asthma, pulmonary fibrosis, lung fibrosis, interstitial lung disease and severe COPDare HIV+are taking medicine that makes you much more likely to get infections (such as high doses of steroids or immunosuppression therapies)have a serious heart conditionBMI >402. High RiskCover is available for people who fall into this group but it depends on the loading/premium increase that the insurer adds to your policy.Let’s rewind to pre COVID times – remember those halcyon days, of hugs, high five’s and happily supping pints on an empty stomach.Back then, if you had Type 1 Diabetes, for example, you might be looking at an increase in your premium of +175%.Today, the increase would still be +175% but due to COVID19, the insurers have pulled back on the risk they are willing to take.Their underwriting guidelines for Diabetes or any High-Risk condition, they can’t offer cover if the increase will be higher than 150%. Some insurers are draconian and won’t offer cover if the expected loading will be over 100%.Instead, they are postponing for 6 months / until COVID19 settles down….whenever that might beThis is why it is so important to know the most sympathetic insurer for your condition. All the insurers are not taking the same approach.

Question 2

What are the insurance companies doing to help Coronavirus patients?

Accepted Answer

Not much because they don’t see a problem.Hear me out.Insurance underwriting is data-driven. The underwriters have not seen a massive spike in the number of clients they are postponing so they don’t think it’s a big issue. What they’re failing to realise is that they are only seeing data from fully medically underwritten applications that they can postpone or decline after receiving a full application.They can’t take account of the applications coming through the broker market where the broker is telling the client they won’t be able to get cover due to COVID19. Every day, I’m crushing the dreams of clients with Type 1 Diabetes or who have a BMI of 40+ but the insurers are not seeing this. And if I’m telling clients not to apply, there are other brokers doing the same things. All this adds up to a lot of people who can’t get cover.

Question 3

Can COVID19 stop me getting a mortgage?

Accepted Answer

As you may know, mortgage protection is mandatory if you’re getting a mortgage. The banks insist on the security of knowing your loan will be cleared if you die. But there are some exceptions to this rule. I have highlighted the most relevant one for you if you can’t get mortgage protection.Per the Irish Statute Book:126.—(1) Subject to the provisions of this section, a mortgage lender shall arrange, through an insurer or an insurance intermediary, a life assurance policy providing, in the event of the death of a borrower before a housing loan made by the mortgage lender has been repaid, for payment of a sum equal to the amount of the principal estimated by the mortgage lender to be outstanding in the year in which the death occurs on the basis that payments have been made by the borrower in accordance with the mortgage, such sum to be employed in repayment of the principal.(2) Subsection (1) shall apply as respects all housing loans except—(a) where the house in respect of which the loan is made is, in the mortgage lender’s opinion, not intended for use as the principal residence of the borrower or of his dependants,(b) loans to persons who belong to a class of persons which would not be acceptable to an insurer, or which would only be acceptable to an insurer at a premium significantly higher than that payable by borrowers generally,(c) loans to persons who are over 50 years of age at the time the loan is approved,(d) loans to persons who, at the time the loan is made, have otherwise arranged life assurance, providing for payment of a sum, in the event of death, of not less than the sum referred to in subsection (1).If you’re unable to get mortgage protection, the bank may offer you a mortgage protection waiver.

Question 4

Does an insurer have to offer me mortgage protection at some price?

Accepted Answer

No, which I think is unfair but in fairness, it&#8217;s the bank that&#8217;s insisting you take out cover before they give you a mortgage, not the insurer.If you can&#8217;t get cover, the bank should be forced to offer you a waiver in line with the Consumer Credit Act.The bank will get your house if you die &#8211; surely that&#8217;s enough security.Did you know that mortgage protection isn&#8217;t compulsory in the UK?So why are we so quick to protect the banks in Ireland.I&#8217;d like to see the banking industry do the right thing and loosen up their criteria for granting a waiver to those who can&#8217;t get cover due to COVID-19. Hopefully, COVID-19 is nearly over so really it will only be a temporary measure until normality returns and those people affected by COVID19 can get cover.But until then&#8230;If you have been declined for mortgage protection and can&#8217;t buy a family home because of it, you have to cause a ruckus.Call Joe Duffy.Contact your local representative.March the streets!The revolution starts at dawn.Failing that, a GoFundMe page seems to be the way to go.

Question 5

If I get vaccinated, can I get mortgage protection?

Accepted Answer

It depends on the insurer, for some it won&#8217;t make any difference as they argue:There’s no data (yep, insurers love data) available for either the longer-term risk of COVID (long COVID for example) or the risk associated with the vaccination.There&#8217;s no data for general take-up rates (i.e what percentage of the population will get vaccinated)Nor is there any data or for how long the vaccine will remain effective.Therefore the reinsurance companies (the ones who call the shots) are being very cautious about how the vaccination will affect their position.For others insurers, if someone has been fully vaccinated then they can consider acceptance of higher-risk individuals. If you are &#8220;high-risk&#8221;, it&#8217;s going to remain difficult to get cover.

Question 6

Does COVID19 affect life insurance for healthy people?

Accepted Answer

Thankfully no, if you&#8217;re in good health, it&#8217;s business as usual.And even if you have a mild underlying health issue, on the assumption it&#8217;s not COVID19 high-risk, then you&#8217;ve nothing to worry about.

Question 7

Is COVID19 delaying mortgage protection applications?

Accepted Answer

Yes, we have seen a marked delay in getting cover for clients.Again, if you have no health issues, you have no worries, you&#8217;re looking at 3-5 days to get your cover.However if the insurer requires a PMAR (medical report from your GP), you could be waiting up to 8 weeks depending on how efficient your GP is / how busy the surgery they work in is. September is traditionally the busiest time of the year for buying houses which have a knock-on effect at the surgeries. Of course, the backlog created by COVID19 has created the perfect storm.Backlog + stricter underwriting = huge demand on GPs who are already overworked due to COVID.Seriously, if you intend to close before Christmas, and you have an underlying health issue that may require a GP report, it&#8217;s time to get those ducks in a row.You might think I&#8217;m crazy but trust me, THE WORLD AND HIS WIFE want to be in their new home before Christmas. It gets busier than a queue at Krispy Kreme drive-thru. Be smart and avoid a stressful December by having your mortgage protection arranged well in advance.

Question 8

Can you get life insurance if you have had Coronavirus symptoms?

Accepted Answer

If you have Covid-19 symptoms, have been advised to get tested or have been diagnosed with it, you will need to wait until full recovery before you can get cover.

Question 9

Does getting tested for COVID-19 affect mortgage life insurance?

Accepted Answer

Absolutely not.Health care workers are being tested multiple times and can get mortgage protection.COVID will only affect your life insurance if you are self isolating, have symptoms or have tested positive.

Question 10

Does life insurance payout if you die with COVID-19?

Accepted Answer

Yes, life insurance covers you for death due to COVID-19.

Question 11

Does serious illness cover payout if you die with COVID-19?

Accepted Answer

No, COVID-19 is not currently classed as a critical illness. You cannot claim for an illness that is not specifically defined in your policy terms and conditions.

Question 12

Does income protection payout if you cannot work due to COVID-19?

Accepted Answer

Yes, if you are unable to work for any reason for longer than your deferred period, you can make an income protection insurance claim.

Medical Issues & Life Insurance

Getting Mortgage Protection & Life Insurance in the COVID-19 Era (12 months in)

Where Can You Get Free Mental Health Counselling in Ireland?

Why Have I Been Declined for Mortgage Protection Cover?

How Does Your Family Medical History Affect the Cost of Life Insurance?

Applying for Life Insurance with Type 2 Diabetes

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