Check your loan papers. If you opted in for 'disability coverage' then you quality. You have to be out of work for your disability doesn't matter your percentage. Each institution is different but it basically works like this. Call or go in and see if you have the coverage. If you do ask them what paperwork you need to bring in to show you agree disabled. Once approved, they will in turn , take over your payments. It doesn't affect your credit or lower your score. The banks don't like it but it's a rarely used option but it works! Hope this helps some of you guys out there.
If you have a mortgage check if you got the disability insurance when you bought your house. If you did ask the loan Company what documents they need from you such as your VA disability ratings.
Sorta off topic but this applies to bank loans as well. I had a 3,000 dollar loan with navy federal credit union that had liability insurance coverage if I became disabled. I filed the paperwork and navy federal paid off my entire loan.
I tried calling, but I was checking in my loan docs, credit card docs, and everything else- hard to find those clauses for veteran disabilities....probably going to have to call them all and see how it works. @TheBears Did you actually get this to work? And if so- were you discharged and out of work ( how long? what % disability were/are you)
@landoFE I am still active duty going through the MEB. My friend did it for his house and it work. It doesn't matter if you are a Veteran or if your a civilian this applies to anyone that is out of work due to being disabled. You have to call your bank if you can't find it on your loan contract. All you have to ask if you have the disability insurance if so ask what they require from you such as VA documents. Good luck.
I wish I could help, but I can't even find an insurance plan that covers this. Everything I read, says you have to have died. There is debt protection plan with USAA but only covers $12,000 if disabled.
I'm guessing that it is probably not standard with USAA or through a VA loan.
It depends on the insurance policy that's why you have to call. Some will only cover a certain amount some cover a certain length of period. It all depends on the loan Company.
I just called USAA and NO ONE knows ANYTHING about this. I had to argue with them that they have a debt protection program and still, no one knew anything. I was on hold for an hour while i was transferred to a thousand different companies. It seems, though, that it is a coverage that you have to buy separately, and i knew nothing about it, so i doubt i have this coverage. I also tried asking the bank who owns/services my mortgage and of course they know nothing either. grrr. stuck.
anyone else out there have some luck with how to initiate this?
