War Widows Have Mortgage Insurance Claims DeniedThe Canadian Minister of Finance is going to bat for Canadian war widows who have been unable to collect on mortgage insurance despite paying it for years. The reason their claims have been denied? According to the Brooks Bulletin, a weekly newspaper in the nation's capital, it's because their husbands died in combat.
Funny -- the article makes no mention of the fact that the insurer or lender warned the widows that dying in combat would make their coverage null and void.
At issue is an exclusion for "act of war". If a Canadian soldier dies in combat as part of a peacekeeping force, can it be said that the soldier died as an act of war?
Most major bank lenders in Canada do not have an act of war exclusion. In fact, some of the widows who had been forced to continue mortgage payments later found out that the bank in question didn't have an act of war exclusion and never had! It was a mix-up at the local branch that caused the problem.
If you or your spouse are in the armed forces and could see active duty, check any life insurance coverage on your mortgage very carefully.
Monique L. Attinger