mortgage protection-life insurance denied

sangupt

Hi friends

I'm in the process of buying a house and was looking at buying life insurance as back up for the mortgage. I approached an IFA for quotes but it turned out that all providers refused me life insurance due to my unfavourable medical circumstances.

Do I have an option of any other cover I can buy please?

Thanks
SG

kingstreet

You definitely used an IFA who sourced from the whole market, not a "financial adviser" tied to only one life office?

sangupt

Well he said he tried several different providers, but didn't confirm if it was whole market

dunstonh

IFAs has have access to specialist insurers who consider those with poor health conditions.

ACG

Its very unusual to get an outright decline.
Insurers would usually look to offer a rating or an exclusion for medical conditions.
Thats not to say its unheard of but without knowing more about the reason for decline its difficult to say.

kingstreet

sangupt wrote: »

Well he said he tried several different providers, but didn't confirm if it was whole market

As dunston said, IFAs use specialist firms for what's known as "impaired life" underwriting. Hence the question.

If this is an IFA, I'd expect him to;-

- exhaust the extensive number of "normal" life offices which may be a possibility

then

- suggest one of the specialists.

Please have a look at the Initial Disclosure Document you should have been given when you opened contact with the advisor. In section 2, it sets out how the advisor operates.

This;-

"We offer products from a range of insurers for Term Assurance, critical Illness, Mortgage Payment Protection Insurance and Buildings and Contents"

indicates whole market or independent advice.

This;-

"We only offer products from a limited number of insurers for term assurance, critical illness assurance, income protection, mortgage payment protection insurance and buildings and contents. Ask us for a list of insurers we offer insurance from"

indicates the adviser works from a panel, not the whole market.

This;-

"We only offer products from a single insurer"

indicates a tied agent of one life office.

If not the top one, find a real IFA and go from there...

sangupt

Thanks all for the responses.

ACG - I wasn't offered any exclusion - it was an outright decine

kingstreet - I didn't get any 'initial disclosure document' from him, so maybe he wasn't a whole of market IFA.

I guess I should then google for a more suitable IFA or can you please suggest a website to find one?

Thanks again

kingstreet

https://www.unbiased.co.uk

Switch off the "website/email only" option so you get a full list for your area, not just paid-for adverts.

FWIW everyone giving advice MUST provide an IDD at the outset - tied, panel or independent, so you can differentiate between the different sources.

ACG

sangupt wrote: »

kingstreet - I didn't get any 'initial disclosure document' from him, so maybe he wasn't a whole of market IFA.

Go and find a new advisor. Its a requirement to give you that document.

dunstonh

IFAs normally make a point out of showing they are independent. The IDD mentioned above is a good way of doing that. Tied agents or multi-tie tend to deflect away from it. Some even use the fact that they are whole of market on mortgages to infer that they are whole of market in all areas. Never actually saying it but wording it to make you think that.