Facing Denial in Life and Mortgage Insurance? Turn to AI Legalese Decoder for Help and Guidance
- May 28, 2024
- Posted by: legaleseblogger
- Category: Related News
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## Importance of Insurance in Buying a House
Husband and I recently went through an Insurance Broker to secure insurance as we are in the process of buying a new house. We made sure to disclose our past drug use, believing that it would mainly impact our health insurance application (which was approved with a different company). We wanted to maintain honesty in our application, not wanting any surprises down the line. Unfortunately, our life, mortgage, and trauma insurance applications were all declined, while our health insurance was approved.
This situation has left us feeling frustrated and uncertain about our next steps. The Insurance Broker informed us that he tried to apply to several other companies, but the outcome was the same – all declined our insurance applications.
In this uncertain situation, AI Legalese Decoder can assist you in understanding the complex legal language and requirements of insurance applications. It can help simplify the process and ensure that you are fully informed of your rights and options moving forward.
It is important to consider whether banks require specific insurance policies to be in place in order to secure a mortgage. Additionally, you may wonder if underwriters communicate with each other and if you could face consequences for not disclosing past drug use in future applications.
Moreover, you have the right to know which companies the Broker submitted your applications to, as transparency is crucial in this process. Despite our honest approach, we find ourselves in a frustrating position where our applications have been declined.
It is worth noting that our past drug use was minimal and occurred several years ago. Understanding the implications of this disclosure is essential as we navigate this challenging situation. With the help of AI Legalese Decoder, you can gain clarity and insight into the next steps to take in resolving this issue and securing the necessary insurance for your new home.
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****** just grabbed a
I only got home and contents when husband and I got a mortgage
I have never heard of a bank requiring evidence of health/life/mortgage insurance.
They usually only require house insurance, because if you can’t pay and your house/land is the security they can sell it to recover their costs.
On the other hand, those things are helpful for each of you to give piece of mind if something happens to one of you.
Why on earth would you tell them you use MDMA or cannabis once or twice a year. This is so bizarre
>NB: drug use for me, the last time was MDMA several years ago. Very minimal, once or twice a year. Same with my husband but he also had Marijuana down.
Yeah, this is pretty much why I will never tell a Dr about any drug use unless I’m dying in the hospital.
Banks generally only require house insurance for a mortgage.
The life insurance ‘requirement’ is something that used to happen years back but doesn’t seem to be a thing at all anymore.
This is not a big deal as long as they think you don’t do it anymore. If you continue to not do it and wait you’ll be fine if you are healthy and there’s otherwise no issue.
You did the right thing by disclosing it.
The worst case is you pay for all this insurance, die, and the policy doesn’t pay out to cover your partner because they do some digging and find out you lied.
Never lie to an insurance company. If you get caught not only will your claims be denied, but you could be put on a list and never be able to get any sort of insurance ever again.
You can even go to prison for insurance fraud theoretically.
Perhaps apply directly instead of using a broker. Did the same broker arranged the health insurance?
In order for any type of insurance policy to be enforceable you need to disclose any issues that may affect the policy, and you did the right thing.
I didn’t need life or mortgage insurance for my mortgage – just house. Side note, if you want life insurance, try DPL insurance. I have a pre-existing condition which makes getting life insurance almost impossible (unless I pay ridiculous premiums) but was able to get a small policy though DPL for about $10fn – think it was for $200k cover. So worth a try if you want to be covered
My partner got life insurance through Chubb, he uses marijuana recreationally and same as you didn’t think there was any point in lying about it. There was a bit of to and fro, they asked for something from his doctor I think but accepted him. Give them a whirl.
What you have disclosed here would 100% not result in a deferral (insurer can’t offer cover now), and would not result in terms (exclusions or loadings).
People with historical moderate use of marijuana/mdma are standards rates all day every day. Chuck mental health into the mix however…
OP – if what you have disclosed here is all you have to disclose, then your insurance adviser is incompetent.
As a ex broker, you didn’t get denied for using mdma 7 years ago now and then, or smoking weed now and then..
You have other issues you ate not disclosing here. You likely are with smokers with precexisting conditions. These are the biggest reasons you get “denied”. Also you generally don’t get denied you get loading, they still accept you but you pay double normal amount because of your high risk and/or you get exclusions.
Sounds like you are either making most of this scenario up pr the broker didn’t believe you and didn’t wanna deal with you.
Im sure the bank will provide life insurance to you which they like to have in place that wiuld cover the mortgage in the event of a death
Anyway u can ask bank who will be providing mtg ? House insurance may be available via bank. In terms of life policies, is there a way you could put whatever the cost of this weekly/fornightly / monthly into a saving / investing account to build up a buffer so u could potentially self insure long term ?
That drug use disclosure should not have effected a deferral. Id assume there are other conditions that you arent disclosing.
Unsure why you’d be required to have life or health insurance.
Home insurance sure. The banks just want their money.
You die, and can’t pay mortgage they sell your house.
You lose your job can’t pay mortgage they sell your house.
You get sick can’t pay mortgage they sell your house.
You have house insurance, your house is ruined, they take your insurance money?
Try MAS for insurance. I am shopping around for policies right now too, and I was talking about exactly this the other day with a friend, she said she was honest about a similar level of drug use to you and she still got life and income protection cover through them. They seem like a good outfit too.
Get a different broker. I got mortgage, life and trauma insurance and disclosed the A class drugs I tried in high school/college, and that I had smoked marijuana in the last 12 months.
I’ve never taken drugs but I feel I’m in the 1% who haven’t. I think everyone else lied.
As others have said, House insurance is usually the only requirement.
In regards to your life insurance I was in a very similar boat. I got outright declined due to MDMA however I only admitted to it due to a bad batch putting me in the hospital (and therefore I figured they would see it on my medical). I was told by the insurer to go away and come back when I was ‘clean’ for two years. So I say just reapply later and don’t admit to any drugs
A note that every insurance application form has a question something like “have you ever been denied insurance or offered insurance other special terms?” You are a yes to that question.
This is considered a *material fact*, and failure to disclose material facts on any policy can invalidate insurance.
You are entitled to a full copy of your Client file under the Privacy Act so you can ask your adviser for this.
Don’t worry you did the right thing. It is super important to be honest and make a full disclosure about previous health issues, family history and drug and alcohol use.
If you apply for cover with another insurer you also need to disclose that you have been declined cover previously and why.