• Guest - w'd love to know what you think about the forum! Take the 2025 Survey »

Getting Life Insurance

J

Jasmin 2

Newbie
Messages
1
Type of diabetes
Type 1
Treatment type
Insulin
Hello,

Has anyone had trouble getting life insurance or know companies that are good to try?! I have recently brought a house and wanting a life insurance policy to cover the mortgage. However, I was refused for 12 months based on a GP report.

Thanks!
 
It might be different in the UK but here in the US you have to buy PMI (private mortgage insurance) if you don't put down at least 20% on your mortgage. The mortgage company forces you to they add it to your mortgage payment. And you yourself have to get it removed (once you have at least 20% equity). So that insurance policy pays the mortgage off in the event you quit making the payments for any reason. And you lose the house of course. So it's not life insurance it's mortgage insurance. They sort of slip that in there when you buy the house you have to look for it on your statement. Mine cost $100/month when I bought our house. It's expensive and you have no choice of company or anything.
 
Last edited:
not a chance with my heart diabetes high bp wonky cholestrol obesity and depression. oddly no one wants to insure me for 1/2 million for 10 quid a month.
 
TheBigNewt said:
It might be different in the UK but here in the US you have to buy PMI (private mortgage insurance) if you don't put down at least 20% on your mortgage. The mortgage company forces you to they add it to your mortgage payment. And you yourself have to get it removed (once you have at least 20% equity). So that insurance policy pays the mortgage off in the event you quit making the payments for any reason. And you lose the house of course. So it's not life insurance it's mortgage insurance. They sort of slip that in there when you buy the house you have to look for it on your statement. Mine cost $100/month when I bought our house. It's expensive and you have no choice of company or anything.
Click to expand...

In the UK, things work differently. If the buyer has a high loan to value ratio on their property, the mortgage company will usually insist upon mortgage indemnity insurance, but that only covers a margin of the loan to value, purely to ensure that if the mortgage repayments stop for any reason they will not be out of pocket on the forced sale of the property. It does zero for the borrower.
 
Jasmin 2 said:
Hello,

Has anyone had trouble getting life insurance or know companies that are good to try?! I have recently brought a house and wanting a life insurance policy to cover the mortgage. However, I was refused for 12 months based on a GP report.

Thanks!
Click to expand...

Hi Jasmin - If you have been declined for 12 months, it probably means there is something that isn't clear that might change, orr something they conclude might change in a year. That could be something like an unexpectedly out of range set of tests, or you're newly diagnosed with something or having tests.

It's quite a different decision to being fully declined.

If you are, say, having tests for something and no diagnosis has been made yet, it's unlikely any other provider would take the gamble on you, bearing in mind the long term nature of a mortgage.

Have you asked your Financial Advisor if it's worth asking other providers? In asking that, I am assuming you have used an Independent Financial Advisor, as opposed to a bank employee for example.

Sorry that's all a bit vague, but without detail it's all speculation and probably wouldn't want to post the detail on open forum.

Take heart - they haven't said no forever.
 
DCUKMod said:
In the UK, things work differently. If the buyer has a high loan to value ratio on their property, the mortgage company will usually insist upon mortgage indemnity insurance, but that only covers a margin of the loan to value, purely to ensure that if the mortgage repayments stop for any reason they will not be out of pocket on the forced sale of the property. It does zero for the borrower.
Click to expand...
No actually that's the same thing I referred to (PMI) which the mortgage company/back just buys for you and adds onto your mortgage payment. It's outrageously expensive and they leave it there until you make the effort to get it removed once your loan to value ratio improves. My loan was only $160k back in the day and my PMI was $100/month. I put down 15% on the house too.
 
I was actually able to buy a $250k life insurance policy about 9 months after I was diagnosed and it was not "rated". My friend was an insurance agent and the company he chose for me only jacked up the rates if you had diabetes for 2-3 years. I had to "front load" the policy so it was a bit like a "whole life" policy not a strict "term life" one. I kept it for years and cashed in the leftover value once I didn't need it anymore.
 
Back
Top