Legal Question in Real Estate Law in New Jersey

disability insurance

my husband got out of work 3 years a go and we had a loan with househould fiance we had disabilty insurance that has been paying it for the last 3 years we also have death insurance . I was told that as long as he is never going to beable to work again that they would pay it off .but that has not happened . we can no longer afford to stay in our home so we have to sell it and find a cheaper place to live. we have send them papers from doctors and social security telling them that he is disable and that it is permitte. what I want to known is that when we sell the house do we have to pay them the money out of the sale of the house this is a 2nd. mortage . they sent us a letter saying that they will pay to next aug. and then they will send us forms to be filled out by the doctor again . his illness will not chanhe he will be the same . he is 65 years old . they also own the insurance comp. can we do anything or will we just have to pay them?


Asked on 11/05/05, 10:42 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: disability insurance

Without having the opportunity to read the policy I cannot provide a complete answer. These policies usually only pay monthly, not a lump sum. Thus, it is my opinion that if you sell, you will be responsible for any balances due that have not been paid per the policy. The policy may provide that if the mortgage is paid by you, the benefits will go to you each month, rather than the mortgage company. I would need to see the policy to provide a better answer.

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Answered on 11/08/05, 12:25 pm


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