In addition, there are disability insurance policies that will give you a salary in case you become injured or ill unconnected with your job. Many times employers provide this benefit to employees at a low group rate, and individuals also have the ability to protect themselves by buying their own disability insurance.
These kinds of programs are not meant to replace your old salary, since they usually only cover a maximum of about 2/3rd of it, and usually less than half. As we all know, making the mortgage payment each month is difficult enough with 100% of your salary; picture the burden if you were only receiving 2/3rds of it. And since your home is probably your most important asset, youshould want to protect it.
This is the part that where mortgage disability insurance is meant to play. If you do become disabled, when you subscribe to mortgage disability insurance, you will have the funds to pay your mortgage each month, and your regular disability payments can be used for other living expenses.
If you have mortgage life insurance, it will cover your family's obligation to pay off the mortgage in the case of your death. But would your family be able to pay the home loan if you became sick or disabled and could not work? Can your family continue to pay the mortgage if you couldn't work for a while? This is the contingency that a mortgage disability insurance policy would be for.
If there are two wage earners in the family, they can both be covered by mortgage disability insurance. If you or another covered member of your family is disabled in an accident that is covered by the mortgage insurance policy, the insurance coverage will give you the cash for you to pay your mortgage or up to two or three years, depending upon the policy. These payments are done in addition to any other disability insurance you may be getting.
There are different features to each mortgage disability policy, so be sure to understand them. Make sure understand and are at ease with all of the terms, since not all illness will be covered, and there can be waiting periods. Once you understand and compare a few policies, you will be in a position to choose the best one for your needs.
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