Mortgage Protection Insurance - getting a better deal?

tHE vAGGABOND

Pardon me if this should be in Accom and Property or something? Im just wondering this without thinking, as I just saw it on a bank statement.

But my mortgage protection insurance is weighted [a lot] due to over weight and a few other things. Its annoying, and more expensive than most people whom I have asked what they pay.

Now a number of those other things dont exist anymore, and I have lost a load of weight. So the things they weight me for are all but gone [all but one small one, which should not be a big deal].

Should I go hunting around for a better deal on the protection insurance stuff? Its just you dont hear of folks talking about it. I guess most people just get it and pay it forever without thinking?

amdublin

At the time of proposal you had additional risk factors compared to the average person and the insurance company had to charge you for that.

What were the other risk factors?

IMO on a new policy for the loading for your weight not to apply you would want to have lost weight slowly and consistently over a long period and have kept the weight off for a very good period to show the ins company that you are not going to put it back on again.

Cannot give you an accurate reply without more facts. What were all the reasons for the weighting on your premium?

eagle_i

Hi Vaggabond,
Below is a reply I gave to another poster with a similar question, these steps can be applied in your circumstances too. However, that poster was in a situation where they were only taking out the policy. If I understand your post correctly you appear to have had your Mortgage Protection (MP) policy in place for some time now. Given the change in your health for the better (ie. loss of weight etc..), I would suggest making a new application to another insurer and perhaps even your present insurer.
First off what you need are the present mortgage balance and the term left on your mortgage. Go online and run a mortgage protection quote, there are plenty of brokers online offering MP with a discount on the first year’s premium of up to 90%. (Remember even if you are loaded again you can still avail of the first year’s premium discount offered).

When making your application you need to disclose that you had a loading/special terms imposed by a previous insurer and set out the reason for the loading to the best of your knowledge. The new insurer will seek medical information from your doctor and details from your current insurer regarding the loading/special terms imposed. They possibly may require you to attend an independent doctor to complete a medical exam (these costs are all covered by the insurer to which you are applying).

B TW, keep your current policy in place until the new policy is in force. If it happens that the new policy is more expensive than the current one, then you can decide not to proceed with the new policy and continue with the current one. It has only cost you in your time in making the application and the medical exam (if requested). If you do proceed with the new policy once it is in force, cancel the old policy in writing.

http://www.boards.ie/vbulletin/showthread.php?p=67381808#post67381808
Hi Jen,
You need to take this in a few steps:
1. Contact the mortgage provider and explain the situation - no need to go into medical details. Your bf needs to advise them that he has been refused cover due to a previous medical condition.

The mortgage lender has seen this before and you are not unusal in any way. The lender usually agrees to proceed without the life insurance by way of signing an indemnity form, which usually states that in the event of death the mortgage will be cleared by your estate. If the mortgage is a joint application then the second applicant must also sign this indemnity. It's not a perfect solution but it helps to get over this initial hurdle.

If your bf has other life assurance in place then give the details to your lender, they maybe willing to accept that life policy. Please note if the policy is pension related the lender cannot take an assingment on that type of policy.

2. With regard to the refusal, you need to request the reason for the refusal from the insurance company, they will not give that detail direct to your bf, but will forward it to his doctor. Once your doctor has the refusal details he can make a judgement of the insurance company's findings. It could be a case of a misunderstanding of the nature of the medical history and your doctor is in a position to correct this. If you doctor disagrees with the insurance company's findings then he will need to put that in writing to the Insurance Company's Chief Medical Officer with a request to reviewing their underwriting of your bf.

Don't panic, all is not lost. Perhaps a little more red tape to get through but all is not lost! If you find your lender not playing ball, so long as you have a firm offer (ie. a letter of offer) you can apply to other lenders to see what terms they will offer.

I hope this is of some help to you.

Good luck.

tHE vAGGABOND

thats great advice lads, thanks

broker2008

Generally speaking, an insurer won't remove a rating for height and weight unless the weight is off for a year. This is to prevent someone going on a crash diet and then putting it back on. If one can correct all the things that you were rated for, you will have a good chance of some if not all the rating being removed or reduced.

tHE vAGGABOND

thats what I understood yea, and it does make sense.

So I will sit on it until next summer and give it a go at doing it again at that stage

rameire

may i suggest this

http://www.boards.ie/vbulletin/showthread.php?threadid=2056006439