Mortgage insurance, will it pay my mortgage while husband is sick?

Question

My husband is sick at the moment & we are unable to pay the mortgage. I cant find my mortgage insurance paperwork. I will call them tomorrow as i know every policy is different, but does anyone know the general rules? Does he have to be off work for a certain amount of time beforew they will pay? I assume he will need a medical certificate. Any information would be helpful, Thanks

Answer 1

That can only be answered by your company.  They may help by allowing deferred payments - missed payments get added at the end.

Perhaps someone can suggest other options available to you.

Good luck!

Answer 2

I hate to sound morbid here, but generally speaking mortgage insurance payments become effective only in case of the the person's death. I am pretty sure it does not include illness which may cause him not to work. This would probably be covered by Workman's comp. Or disability insurance.

Answer 3

"Mortgage Insurance" is just insurance company double speak for 'life insurance' and it is usually whole life which is the worst kind to buy.  It will pay when he is dead.  You  need disability insurance to cover loss when he cannot work due to sickness or injury.

Don't expect much help from the insurance company, they only care about getting the premiums.  You would be better off calling the bank and see what options you might have to delay the almost certain foreclosure.

Answer 4

The term "mortgage insurance" is usually misused to mean either PMI (which won't help you) or life insurance that pays off a mortgage balance in the event of the death of the borrower.  You are looking for a short-term disability coverage.  Is that what you in fact bought?

Answer 5

When most people talk about mortgage insurance, they are talking about PMI - private mortgage insurance.   PMI pays the bank, if they have to foreclose on you.  It NEVER pays you.

If you have a mortgage disability policy, it pays the mortgage if the named person is DISABLED.  Not sick.  Not, oh, I had to take a week off work, but "the doctor says he'll never be able to work again".  Usually you have to be disabled at LEAST 30 days, sometimes as long as six months.