New Mortgage Protection Practices for Cancer Survivors
/A new code of practice for underwriting mortgage protection policies for cancer survivors has recently been launched by Insurance Ireland. This is very positive option and good news for clients who have beaten cancer.
The COP (Code of Practice) is a framework which will allow those who have survived a cancer diagnoses to be exempt from the normal underwriting process for their cancer history in specific circumstances. This means that an applicant will get normal premium rates for their cancer medical history, as opposed to a loading on the rate or other underwriting decision.
The criteria for cases applied for may include the following.
· New applications should be for mortgage protection, life cover only.
· The maximum acceptable level of life cover per life, is the lesser of the mortgage amount or €500,000.
· The application can only relate to primary private residence – first time buyers, home mover and re-mortgages for example (does not apply to second property, holiday or buy-to-let properties).
· For the mortgage protection cover to be valid the mortgage amount must be drawn down from the lender. So, a mortgage life cover application on its own, without a mortgage being in place cannot be used as family protection cover.
· The applicant must have ended their cancer active treatment and their cancer must have been in remission for more than 7 years prior to their application.
In order for the process to work in an applicant’s favour, they must disclose their cancer medical history when requested. By not correctly disclosing a cancer history and treatment details when asked, there can be serious implications should a claim occur in the future.
Just on a separate note, some cancer survivors don’t have to have ended treatment or be in remission longer than 7 years to be able to get life insurance cover. I have previously set up a life protection policy for a cancer survivor who had successfully claimed on a Specified Illness policy some time before.
