Banks that are waiving life assurance requirement

Cloudhopper

Hi,

Are there banks who are more likely to waive the requirement for life assurance cover for a single party on a joint mortgage application?

Thanks.

Atlantic Dawn

I can't see there being any bank that would, it opens them up to more risk of a loss if that party dies.

If there's a medical condition or family history preventing cover they should shop around as some life assurance providers will offer life cover for these conditions.

hairyslug

Ulster did for my wife, though it was a joint application and I covered it,

There are companies out there that will insure high risk people

Mrs OBumble

Atlantic Dawn wrote: »

I can't see there being any bank that would, it opens them up to more risk of a loss if that party dies.

The risk is very small, though, if there a low LVR.

Trish56

It might be considered by a lender if the person's income was not required to qualify for the mortgage.

It is advisable to arrange mortgage protection in joint names however as it is important even for a non earning parent to have cover in the event of death as it would be a huge loss to the household and more than likely if you have a young family that you would have to employ someone.

If there is a health issue and you are having problems in arranging cover you should be able to get cover from a UK insurance Company called Pulse and can be arranged through most brokers here in Ireland.

Cloudhopper wrote: »

Hi,

Are there banks who are more likely to waive the requirement for life assurance cover for a single party on a joint mortgage application?

Thanks.

iainBB

A friend of mine just stopped paying. Bank contacted them but he did it does not want it. Banks said nothing.

bleary

I discussed this with a broker as I have been refused cover. He said each case is considered on its merit but unusual to refuse mortgage. He felt the only time that may happen is when there is one sole earner with family. If anything happened to them bank would have difficulty selling the property to recoup the loan

Henry Ford III

iainBB wrote: »

A friend of mine just stopped paying. Bank contacted them but he did it does not want it. Banks said nothing.

Bank and policyholder are both behaving unwisely in that case.

iainBB

Henry Ford III wrote: »

Bank and policyholder are both behaving unwisely in that case.

Not really from the policy holder point of view, he took the policy out as a requirement to get the mortgage, he lied on the forms to get the required insurance documents to get the mortgage, he was paying out on a protections that he would never have gotten. 30 years with 60 euro a month. wasted / down the drain, no protection or return.

He bluff with the bank and said what are you going to do about it and they did nothing. ( in reality the bank had no protection either, it was a illusion of protection that would have never payed out. )

And yes he would never have gotten any money from the insurance due to the extend of the lies on the form.
He now uses the money to have a worth while insurance that protects his family in case of loss.

Henry Ford III

iainBB wrote: »

Not really from the policy holder point of view, he took the policy out as a requirement to get the mortgage, he lied on the forms to get the required insurance documents to get the mortgage, he was paying out on a protections that he would never have gotten. 30 years with 60 euro a month. wasted / down the drain, no protection or return.

He bluff with the bank and said what are you going to do about it and they did nothing. ( in reality the bank had no protection either, it was a illusion of protection that would have never payed out. )

And yes he would never have gotten any money from the insurance due to the extend of the lies on the form.
He now uses the money to have a worth while insurance that protects his family in case of loss.

I don't follow that.

If he couldn't get life assurance due to ill health, what other sort of "worth while" cover could he have obtained?

The lender is also left over exposed because of the mortgage holders deception.

iainBB

He could not get life assurance for his wife.
so he got payment protection insurance for himself(as he is the main bread winner ) and started an investment portfolio in case of emergency.