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total mortgage protection ins Halifax

Hi there
My husband has Halifax TMP and has been paying this for many years. He may have to claim due to ill health in the near future, but something is worrrying me.

He used to bank with Halifax but has now moved to coop as we have financial probs and has an overdraft with the halifax and has defaulted on a loan with them too. If he were to claim on his insurance policy could on the grounds of ill health could they use the money they should use to pay the mortage to pay the defaulted accounts instead? This is a real worry to me at the moment.

Many thanks in advance
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