legally, can you claim on a mortgate protection policy if you are paid by your employer when off sick?

Question

i have been paying this for 6 years and have been advised that if your employer pays you during periods of sickness, then you cannot claim on this policy.

Answer 1

The policy should explain it all. Generally if you are receiving sick pay from your employer at your full compensation rate you are not able to file a claim under the mortgage protection policy. If you are receiving short or long term disability at a reduced rate you generally are able to file a claim under the policy.

All of that said, mortgage protection policies are a TERRIBLE financial deal for the policy holder. I've been paying mortgages for nearly 30 years and have never had a fileable claim under one. You'll normally be much better off canceling the policy and putting the money in a savings account.

Answer 2

Mortgage disability policies don't take disability payments from other sources into account. Go ahead and file your claim and let the insurer make the decision. In all likelihood, it's claim form will ask if you're getting disability income from your employer or another insurer. Usually, if the disability doesn't last too long, they do nothing with that information.

Keep in mind that, if you purchased this policy through your lender, it will be the beneficiary.

Whoever told you this doesn't understand how these types of policies work.

Answer 3

The real answer here is: call the insurance company and get directions. They are friendly.

No one can tell here what the terms of your policy are or even what kind it is.

There are term life insurance plans that are marketed as mortgage protection and have certain qualifications.

Then there are indemnity plans that will pay you a set amount without restrictions if you qualify.

Answer 4

I would say that your right its not legally possible to both be getting wage payments be they sick pay or long service or paid leave and to be able to recieve mortage relief payments from insurance.

Answer 5

not if your being paid the full rate