Q: What's a mortgage protection waiver?

If you can’t get cover and you can prove this by showing the bank your postponement/decline letter, the bank may allow a waiver.A waiver is a piece of paper you sign confirming you understand the consequence of getting a mortgage without life insurance.i.e. if you die, your partner will have to continue to pay it from their income.Usually, the banks will only allow waivers in the following scenario:joint applicationone applicant can get coverthat applicant’s income is strong enough to support the mortgage repayments on their own.

Q: Are there exceptions to mortgage protection?

From Citizens Information Exceptions to the legal requirementYou do not have to take out mortgage protection insurance if:You are aged over 50 orThe mortgage is not on your principal private residence (your home) orYou cannot get the insurance, or can only get it at a much higher premium than normal orYou already have enough life insurance to pay off the home loan if you dieHowever, AND THIS IS THE KICKER, some lenders may insist that you take out mortgage protection insurance as a condition of giving you a mortgage, even if there is no legal requirement.Basically, waivers are at the discretion of the lender.

Question 1

What do you do if you've been postponed for Life Insurance?

Accepted Answer

Just a note here in case you’re confused: we’re using the term Life Insurance and Mortgage Protection interchangeably. Mortgage Protection is a type of Life Insurance. The big difference is that if you’re trying to get Life Insurance and you’re postponed, it’s not the end of the world if there is a 6-month delay.However, if you’re getting a mortgage, without mortgage protection, you may lose the house! That’s why mortgage protection requires much more urgency than life insurance. This means it’ll also change how you react to the postponement.The first thing you should do is find out why you were postponed for Life Insurance. Ask the Chief Medical Officer (CMO) of the insurance company that postponed you to write to your GP with their reasons why letter.Once the GP receives the letter, have a chat with them to see how they feel. Usually, you can tell by their reaction whether it’s worth appealing.Your options if postponed:1. You can accept the postponementIn the case of Mortgage Protection, you’re going to lose the house unless your bank allows you to sign a waiver. See below.(BTW, If you have any medical issues, apply for Mortgage Protection BEFORE handing over a non-refundable deposit.)2. You can apply to a different insurerEach insurer handles each case differently. This is especially true if you’ve been postponed because of a medical thing. Every insurance company has an underwriting department that do the maths and consider the risk on each application.Some of the insurers treat specific illnesses or medical issues much more sympathetically than others. What I’m saying is that just because one says no, another may not.Just be prepared to pay a little more for the luxury of the insurance.Basically, it’s a bit like Tinder for insurance. The more insurers you apply to, the more likely you are to get a match. Tindred spirits.3. Go to a good broker for helpSwiping right on all those insurers and their different policies can get time-consuming fast, so consider working with a broker who works with all the insurance companies. If you have a medical issue, be sure to work with a broker who has ample experience in that field. And make sure they deal with all the insurers. Also, make sure you know the ins and outs of your medical condition, even better if you can share medical reports. The more information you have for your broker, the better set you’ll be.They’ll use their nous to present your case to the most sympathetic insurer to increase your chances of nabbing mortgage protection and buying your dream home.4. If all else fails, beg and plead for a waiver…

Question 2

What's a mortgage protection waiver?

Accepted Answer

If you can&#8217;t get cover and you can prove this by showing the bank your postponement/decline letter, the bank may allow a waiver.A waiver is a piece of paper you sign confirming you understand the consequence of getting a mortgage without life insurance.i.e. if you die, your partner will have to continue to pay it from their income.Usually, the banks will only allow waivers in the following scenario:joint applicationone applicant can get coverthat applicant&#8217;s income is strong enough to support the mortgage repayments on their own.

Question 3

Are there exceptions to mortgage protection?

Accepted Answer

From Citizens InformationExceptions to the legal requirementYou do not have to take out mortgage protection insurance if:You are aged over 50 orThe mortgage is not on your principal private residence (your home) orYou cannot get the insurance, or can only get it at a much higher premium than normal orYou already have enough life insurance to pay off the home loan if you dieHowever, AND THIS IS THE KICKER, some lenders may insist that you take out mortgage protection insurance as a condition of giving you a mortgage, even if there is no legal requirement.Basically, waivers are at the discretion of the lender.

Question 4

I have an appointment pending - will I be postponed?

Accepted Answer

More than likely, yes.The most common reasons for a postponement are:Awaiting a regular smear after an abnormal smear or an LLETZ or colposcopyReferred for a heart check, e.g. cardiac MRI, ECG, or EKGBreast check screen/mammogramThe above is only a sample..If your medical report contains a referral for further investigation by a specialist, there will be an issue even if this referral is years old. Before you apply, you should check with your GP and if the referral is no longer required, make sure they note this on your medical report. Otherwise, the insurer will postpone until the appointment has taken place.

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