Insurance companies launch new code for cancer survivors to get life cover

Controversy has erupted in the last few years after it emerged that cancer survivors struggle to access life insurance years after recovering from the disease.

Now the main insurers have signed up to a code of practice for cancer survivors.

The code means insurers will disregard a cancer diagnosis where treatment ended more than seven years prior to their application for mortgage protection insurance.

A cancer diagnosis will be disregarded if it was five years or more if the applicant was under 18 at time.

The Code of Practice for Underwriting Mortgage Insurance for Cancer Survivors should mean cover of up to €500,000 per cancer-surviving applicant in connection with a mortgage on a principal private residence is available.

It is due to take effect from December 6 next, following a six-month implementation period for insurance firms.

It follows discussions with the Irish Cancer Society last summer regarding its 2021 report, highlighting that many cancer survivors do not feel that they can access the necessary life cover in order to be obtain a mortgage.

Representative group for the sector, Insurance Ireland, said an external reviewer is to monitor adherence to the code.

The first review will take place in January 2025 to assess implementation, with the next in January 2028, and subsequent reviews every three years thereafter.

Insurance Ireland said it has worked with a number of stakeholders both here and across Europe to design a framework that appropriately balances the needs of cancer survivors without causing a reduction in availability of cover for other consumers.

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.

It is open to non-members of Insurance Ireland to sign up to the code.

Insurance Ireland and its members said it wanted reassure those affected that, as things currently stand, it is not the case that all applicants who disclose a cancer diagnosis are automatically declined cover.

“Many mortgage protection applications of this nature are accepted at either standard rates or with an additional cost,” it said.

Insurance Ireland welcomed that fact that Brokers Ireland has published 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.

Source: Charlie Weston.