Been turned down for life insurance, what next?

HaX

HaX

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Joined
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Berkshire
Hi there,

I'm currently in the process of buying a house with my girlfriend. I'll be the main mortgage payer as I earn over double her wage. Consequently mortgage protection is pretty crucial for me.

I went through an IFA to get insurance through Legal & General, however they have turned me down on medical grounds having received my details from my Doctor.

I really can't understand why I've been turned down. I've had a few problems in the last couple of years, however I'm a generally healthy 24 year old.

I've not had cancer, have no life threatening diseases, and am not overweight. I also haven't had a day off sick in more than three years.

I have had a few issues with my health in the past - Tinnitus, Neuralgia and Depression and Anxiety but nothing more.

I'll be contacting Legal & General tomorrow. Some muppet has obviously decided that Tinnitus and Neuralgia are potentially fatal illnesses.

Has this happened to anyone else and will it affect my mortgage?

Cheers

HaX
 
Ask your doctor what he said to the insurers, and on what grounds - if the doctor doesnt think your well enough to insure then why hasnt he got you in for a check up.??
 
Do you smoke and drink!?

Its worth shopping around for yourself. Your IFA will be getting FAT commission from a LA company. Do it yourself, and you can often get a better deal

Why not ask your mortgage provider directly...

You need to be careful here. Althought legally they can't do this, your mortgage provider could refuse to grant your mortgage unless like cover is in place.
 
I don't smoke or drink at all these days. I put this down on the application when they asked how much I smoke or drink. I occasionally go out clubbing at the Weekend, but even then, it is less than once a month.
 
Life insurance or mortgage protection?

I'm in the same position with wages, but I bank on the other option, which is that in the event of me beign redundant I'd get a shelf stacking job quickly and that would be enough to cover the mortgage. Yea I'd have to sell the cars and stuff but it could be done.

Protection cost too much for my liking :o
 
Magsy said:
Life insurance or mortgage protection?

I'm in the same position with wages, but I bank on the other option, which is that in the event of me beign redundant I'd get a shelf stacking job quickly and that would be enough to cover the mortgage. Yea I'd have to sell the cars and stuff but it could be done.

Protection cost too much for my liking :o

Unfortunately, you've probably been missold the mortgage protection. It doesnt even cover 50% of the mortgage repayment in most cases. Its worth checking.

If you're redundant you'd get a payment paid out to you. It will pay out in the event of death, but if your married or on a joint mortgage, then the responsibility of paying the remainder falls on your partner.

In addition, with unemployment or redundancy, MRP only pays out for 12 months...

Its probably actually best to have both!

EDIT: Oh, and its Life Ass, MRP doesnt require the same information as LA
 
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Magsy said:
I think you quoted the wrong post there :p

:confused: The stuff you wrote relates to MRP. Life Assurance is exactly that. It will pay out only upon death, and to the full cost of the mortgage.

It offers no cover for redundancy or illness. Thats MRP.

For a 24 y/o Life Assurance should not cost more than £20/month.

MRP is a fixed amount relating to the mortgage drawdown amount, and is not dependant upon your health. The reason LA is dependant on health is so that the LA company knows how 'high risk' you are and charges you accordingly.

For example, I once did an LA quote for a 63 YO Male who had no recorded illness. It still cost him £120 PER MONTH in LA in case he died during the payback period...

I think you need to double check exactly what type of protection you have ;)
 
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