Landmark Legislation Set to Ease Mortgage Access for Cancer Survivors
Cancer survivors in Ireland are poised to experience a significant improvement in their ability to secure mortgage protection insurance, thanks to latest government plans expected to become law before the summer recess. The proposed changes, stemming from the Central Bank (Amendment) Bill 2025, address long-standing difficulties faced by individuals in remission when applying for mortgages.
The ‘Right to be Forgotten’ – A Five-Year Remission Period
For years, cancer survivors have faced higher premiums, delays, or outright refusals for mortgage protection insurance, often due to lengthy remission period requirements. The new legislation will reduce this period from seven years to five, aligning Ireland with best practices in other European countries. This shift represents a major victory for advocacy groups like the Irish Cancer Society, which has campaigned for this change since 2021.
Increased Insurance Threshold Reflects Rising Property Values
Recognizing the increasing cost of housing, the government is also raising the mortgage protection insurance threshold from €500,000 to €650,000. This adjustment ensures that a wider range of properties are covered, providing greater financial security for cancer survivors seeking to purchase a home.
Statutory ‘Right to Disregard’ Offers Enhanced Protection
A key component of the legislation is the introduction of a statutory ‘right to disregard.’ This means that, after the five-year remission period, cancer survivors will not be required to disclose certain aspects of their medical history when applying for mortgage protection insurance. This provision aims to prevent past illness from unfairly impacting their financial future.
Real-Life Impact: Lydia Whelan’s Story
The impact of these changes is already resonating with cancer survivors. Lydia Whelan, a breast cancer survivor from Co. Kildare, shared her experience of having a property purchase stalled after her diagnosis. While she ultimately secured the home, her name couldn’t be added to the title due to insurance complications. “The thought of being medically clear…but then having to wait seven years…it would be prolonging the trauma,” she explained, highlighting the emotional and financial burden faced by many.
A Voluntary Code Strengthened by Law
The upcoming legislation builds upon a voluntary code of practice introduced by Insurance Ireland in December 2023. However, advocates emphasized the demand for a statutory framework to provide legal certainty and accountability. The government’s approach aims to strengthen the existing voluntary measures and ensure consistent application of fair practices.
Looking Ahead: Implementation and Potential Penalties
Following Cabinet approval, the legislation will proceed through the Oireachtas. A commencement order will allow the insurance industry time to adapt to the new regulations. Under the proposed law, financial providers could face fines or imprisonment for discriminating against individuals based on their health history when applying for insurance products.
Future Trends: Expanding Financial Inclusion for Health Conditions
This legislation marks a significant step towards greater financial inclusion for individuals with pre-existing health conditions. Experts anticipate this could pave the way for similar reforms in other areas of financial services, such as life insurance and credit applications. The focus is shifting towards a more nuanced assessment of risk, considering factors beyond past medical history.
The move also reflects a broader trend of recognizing the importance of psychosocial wellbeing in recovery. By removing financial barriers, the legislation aims to reduce stress and anxiety for cancer survivors, supporting their long-term health and quality of life.
FAQ
Q: What is the ‘Right to be Forgotten’?
A: It refers to the right of cancer survivors to have their medical history disregarded after a specified remission period when applying for financial products like mortgage protection insurance.
Q: How long is the remission period now?
A: The remission period has been reduced from seven years to five years.
Q: What is the new mortgage protection insurance threshold?
A: The threshold has been increased from €500,000 to €650,000.
Q: When will these changes come into effect?
A: The legislation is expected to be passed before the summer recess, with a commencement order to follow allowing time for industry implementation.
Q: Will insurance companies be penalized for discrimination?
A: Yes, financial providers could face fines or imprisonment for discriminating against individuals on health grounds.
Did you know? The Irish Cancer Society launched its ‘Right to be Forgotten after Cancer’ campaign in 2021, highlighting the financial challenges faced by survivors.
Pro Tip: If you are a cancer survivor seeking a mortgage, familiarize yourself with your rights under the new legislation and be prepared to advocate for yourself.
Have questions or experiences to share? Leave a comment below!
