If you’ve taken out a mortgage, chances are your lender offered you mortgage disability insurance, a type of creditor protection insurance that promises to cover your mortgage payments if you become disabled and unable to work. While this coverage can provide peace of mind, many policyholders are shocked when their claims are denied at the very moment they need support the most.
Mortgage disability insurance denials are more common than most people realize. The fine print in these policies often hides restrictive definitions of “disability,” vague exclusions, and technicalities that insurers rely on to deny claims.
What Is Mortgage Disability Insurance?
Mortgage disability insurance (also called mortgage protection insurance or creditor disability insurance) is a form of coverage often offered by banks or lenders when you take out a mortgage. The agreement is a simple one: if you become disabled due to illness or injury and can’t work, the … Continue reading