What are my rights if I have a mortgage disability policy to help pay the mortgage in case of disability?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What are my rights if I have a mortgage disability policy to help pay the mortgage in case of disability?

I am currently on long term disability from Aetna through my work. They told me today during a phone interview that if I receive money from the mortgage policy they may lower how much they pay me. Aetna pays me 60% of my work pay on LTD.I pay premiums for both policies and do not see what one has to do with the other. It does not seem legal to me. It is as if I’m to be punished for have a mortgage policy. How is this legal if at all.

Asked on July 23, 2013 under Insurance Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Insurance policies are contracts: they are governed by their terms. Insurers must pay whatever the terms of the policy(ies) require them to pay--and are allowed to avoid or reduce payments when the terms of the policy(ies) allow them to do so. You need to review the Aetna policy to see when and why they could reduce what they pay you. Ask the Aetna representative to explain the legal justification for the proposed action and point to the terms or language in the policy authorizing it.  If they are violating their obligations under the policy, you could sue them (e.g. for breach of contract) to force them to pay what  they must.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption