thumbelina
Registered User
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Hi,
Does anybody have experience or knowledge of the following situation:
Guaranteed Mortgage Protection Plan in place with Zurich.
Claim due to death of policyholder was lodged in January and settled in November, 10 months later. Settlement amount was for the value of theproperty mortgage on the date of death.
During those 10 months the mortgage lender continued to charge interest on the outstanding balance leading to a shortfall between the payout from Zurich and the amount due on the mortgage in November.
Is this correct? It implies that the estate of the deceased is liable for the interest shortfall between when the claim was lodged and paid.
Should the lender have paused interest charges while the case was being settled? Or should the life company have actually settled for the amount outstanding when the claim was processed?
Does anybody have experience or knowledge of the following situation:
Guaranteed Mortgage Protection Plan in place with Zurich.
Claim due to death of policyholder was lodged in January and settled in November, 10 months later. Settlement amount was for the value of the
During those 10 months the mortgage lender continued to charge interest on the outstanding balance leading to a shortfall between the payout from Zurich and the amount due on the mortgage in November.
Is this correct? It implies that the estate of the deceased is liable for the interest shortfall between when the claim was lodged and paid.
Should the lender have paused interest charges while the case was being settled? Or should the life company have actually settled for the amount outstanding when the claim was processed?
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