When we buy a home and make a mortgage, the bank almost always forces us to make life insurance. As these mortgage loans are many years, anything can happen, even that by accident or disease we end up without the possibility of working and perceiving a permanent disability. In these cases, almost no one falls, but can my life insurance cover it?
In this sense, lawyer Pablo Ródenas wanted to briefly explain what is usually happening in these cases in which we have life insurance linked to the mortgage and suffer a permanent disability. In one of his videos, the lawyer explained that many people sign the policy in the bank or next to the mortgage contract, with hardly any conditions, years later, when the recognition of a permanent disability comes, they do not know that this insurance can settle the debt with the bank.
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Can I cancel a mortgage for a permanent disability?
“Some insurance cover the permanent disability, only that no one warns you. You have to look at the policy well, see if it covers your degree and if so claim, even if they tell you no, even if they are lying with papers and clauses,” says Ródenas.
In addition, she adds that although the insurer tries to discourage the affected, it is worth checking the policy and claiming what corresponds. “In many cases, life insurance may mean the cancellation of mortgage debt or access to compensation that guarantees economic stability,” explains the lawyer.
What does the law and jurisprudence say about these policies?
The Supreme Court published a sentence on January 31, 2023 (Civil Chamber) in which it made it clear that the efficacy of the policy can be left to the mere time late social security in dictating the resolution. This case was curious, since the insured was given the permanent disability when the policy had already defeated, but, the Chamber understood that the causative disease had been revealed as irreversible during the work decline, at which time the contract was in force. Therefore, he forced the insurer to pay agreed compensation.
As the magistrates point out, the key is to correctly delimit the “date of the incident”, which can be rolled up at the moment when the sequelae manifest as permanent, even if the formal declaration of the INSS arrives later.
What does life insurance cover with mortgage?
According to BBVA experts, the hiring of life insurance linked to the mortgage is not mandatory, but usual. In case of death or total or absolute permanent disability, it will be the insurer (and not the heirs) who must pay the bank the pending capital of the loan to the bank.
From Campmany Lawyers They insist that coverage usually includes permanent disability, although companies try to limit or delay payment by claiming review clauses, pre -existing diseases or the lack of a definitive opinion.
In this case, it is important to take into account what the insurance contract law says (that can be consulted in this boe), which in its article 23 establishes a period of five years to claim in people insurance.
How to claim if the insurer refuses
Although the regulations are clear, the procedure is not always simple, because although the standard says that the company should pay compensation within 40 days from the notification, in practice it is usual to request additional medical reports or even reject the payment claiming that the recognized disability is revisable.
In these cases, they recommend collecting all the necessary documentation:
- Complete insurance policy (general and particular conditions).
- Health questionnaire signed at the time of hiring.
- Medical reports and clinical history, whose access is recognized in article 18 of the Patient Autonomy Law.
- Resolution of the INSS that recognizes permanent disability.
If the company persists in the refusal, the road is to file an extrajudicial claim and, ultimately, go to court.