Being one of the most common types of insurance that people get in their lives, a mortgage protection cover is what you need in order for a financial institution to give a green light on the mortgage you want to get when trying to buy a house. It also, as the name says it itself, protects you against the inability to repay your mortgage later on and it also offers a kind of a financial security to your family in the even that something happens to you and that they are left with the necessity to repay that mortgage. The monthly premium that people pay for this type of protection varies from person to person and usually depends on your health, age, as well as the general mortgage amount. Click this to learn more about it.
Most often, mortgage protection is just something that people get without even having to think twice about it, as they are approved for it rather quickly. Most companies have a rather high acceptance rate, which only goes to show that people are rarely rejected when it comes to getting this type of coverage. Yet, just because it happens rarely, it doesn’t mean it cannot happen at all. The truth is that it does happen from time to time and that there are some clear reasons why.
If you are thinking about getting mortgage protection, but you are for some reason worried that it might get refused, then here is what you should do. Before going any further, make sure to learn about those reasons why people get declined for this type of coverage. That way, you will get a much clearer idea about whether you can expect to be rejected as well, or if you should just calmly start the process, knowing that you’ll be approved in no time.
Of course, a lot of people might think that there is absolutely nothing they can do in the event that they get rejected here, but that most certainly isn’t the case. To put it differently, there might be a way out, i.e. a way for you to get the mortgage protection you need even if you get rejected the first time. So, after we are done learning about the reasons why mortgage protection might be refused, we will proceed to talking about what it is that can be done with the aim of receiving a different answer and thus successfully completing the task and getting the necessary coverage.
We will, however, take this one step at a time, and the logical thing to do is start with the reasons. After all, everybody gets curious about what it actually is that got them in trouble. In this case, the trouble is the fact that they haven’t gotten the insurance they wanted. Plus, as explained previously, you probably want to learn about these reasons in advance, so that you know precisely what to expect before you even apply for this particular coverage. So, let us check those reasons out.
One of the main reasons for being refused mortgage protection is your actual medical condition. Don’t worry, though; this does not mean that you will get declined if you are suffering from any disease whatsoever. In fact, most conditions can actually be easily accepted by the insurance companies, but the truth is that they don’t like taking enormous risks, meaning that they won’t accept any types of unquantifiable risks, i.e. something that they aren’t able to predict or calculate. This is why the application form requires you to clearly disclose the conditions you might be dealing with.
As I have said, though, most of these conditions can easily be priced and accepted. Yet, some might easily get your application declined and although that might not seem fair, I suppose you understand where the insurance company is coming from. To repeat it, they don’t like taking enormous risks. Okay, now you probably want to know which conditions might get refused, so let us talk about that.
The good thing is that the number of these conditions that might get declined is pretty small. Terminal illnesses are certainly first on the list and I’m sure that you get why. In addition to that, if a person has a lot of different risk factors combined together, such as serious heart disease combined with smoking and perhaps obesity, then he or she will most likely get declined. Obesity in itself is a huge risk that these companies are usually not willing to accept, and so is alcoholism and a noticeable pattern of self-harm.
The above is usually the most common reasons why people don’t get their mortgage protection approved, but there is a different scenario that you might also want to consider. For example, your bank might not have presented your entire application in the right light, which might have led the insurer to believe that you are a huge risk. This doesn’t happen very often, but the point is that it can happen, so make sure to be aware of that at all times.
Sometimes, though, the only reason why you might get declined is because you have chosen to try your luck out with the wrong insurer. This simply means that not every company will have the same rules or accept the same risk factors. Consequently, you shouldn’t just immediately give up if your application isn’t approved right away, because you still have the chance to get your mortgage protection. If you want to get a better idea about how mortgage protection works, this might help:
Now, if you have already applied once and if you were refused the mortgage protection that you wanted, the worst thing you can do is give up without a fight, so to speak. As previously explained, you might still have a chance of getting what you want. The only thing is, you will need to know exactly what to do next in order to actually have a better shot at getting the coverage that you actually want. I know that you might be feeling discouraged, thinking that you cannot change anything and that you’ll simply get refused all over again, but that doesn’t have to be the case.
Of course, if you don’t want to get refused all over again, then you will need to know precisely which steps to take and what to do in order to get approved. In case you have absolutely no idea what to do next after your application has been declined, I say you should keep reading. That’s because I’ll tell you about the two most important things you should do with the aim of increasing your chances of getting mortgage protection. Here we go.
I have already previously explained that not every insurance company is ready to accept the same risk factors and that not every insurer has the same requirements or the same policies. This is something that you should take into account when filing your application. In fact, it is something that you should thoroughly think about before actually filing any applications whatsoever. What I am trying to say is that your choice of insurer matters significantly.
This is why you should never rush into filing your application with just any insurer you come across. Instead, you should do your research and check out multiple options. Check the reputation of the companies you are considering and try to have a look at their terms of giving out mortgage protection as well as the requirements you would have to meet in order to get approved. In other words, check the risk factors they are willing to accept, so that you can understand if you actually have any chances. Remember, though, that you should never agree to work with certain shady insurers the reputation of which is not up to par.
This is perhaps an even more important tip that I have to give you, because doing this right could actually solve all your approval problems. Basically, you should find the perfect insurance broker and let the professionals work their magic and find you a company that will give you mortgage protection even if you fall into a higher risk group. Of course, this does not mean that brokers are miracle workers. It simply means that they have access to a large number of companies and some of those might just be right for you.
Once again, though, you should do your best to find the perfect broker instead of agreeing to work with the first one you come across. So, do your research, check reputation and experience, as well as the fees they charge and then have a few interviews with a couple of different candidates. Ask all the questions you need to have answered during those interviews and then make your final decision and let the broker work for you.