There has been controversy in recent years over cancer survivors struggling to get life insurance years after they recover from the disease. Now, the main insurers have signed up to a code of practice to address this issue. The Code of Practice for Underwriting Mortgage Insurance for Cancer Survivors means that insurers will disregard a cancer diagnosis where treatment ended more than seven years prior to the application for mortgage protection insurance. For applicants who were under 18 at the time of diagnosis, a cancer diagnosis will be disregarded if it was five years or more. This code is expected to be effective from December 6, following a six-month implementation period for insurance firms, paving the way for €500,000 worth of cover per cancer-surviving applicant in connection with a mortgage on a principal private residence.
This move follows discussions with the Irish Cancer Society last summer regarding its report for 2021 which highlighted that many cancer survivors face difficulty in accessing the necessary life cover to obtain a mortgage. Insurance Ireland, a representative group for the sector, said that an external reviewer would monitor adherence to the code, with the first review on compliance to be conducted in January 2025, followed by subsequent reviews every three years. The companies that have signed up for the code include Acorn Life, Aviva Life and Pensions, Irish Life, Laya Healthcare, New Ireland Assurance, Royal London and Zurich Life Assurance plc. Non-members of Insurance Ireland can also sign up to the code.
Insurance Ireland and its members want to reassure those affected that all applicants who disclose a cancer diagnosis are not necessarily declined cover. Many mortgage protection applications of this nature are accepted at either standard rates or with an additional cost. Insurance Ireland welcomed Brokers Ireland’s publication of a list of specialised brokers on its website to assist consumers who have had difficulty acquiring life cover due to a pre-existing illness. The insurance lobby group said its members were mindful of the impact that a declined application can have on a cancer survivor, who has already faced a hugely challenging experience.
