mortagesandforeclosures

by Gordon B. Cowen

The concept of any kind of disability insurance is easy: it is to provide salary in case salary is cut off due to accident or illness. There are government programs that offer such insurance, and many firms offer group disability insurance to their employees. The concept is like unemployment insurance in that if your salary is stopped, in this case because you cannot work, not because you have lost your job, you will still receive an income.

In addition, there are disability insurance policies that will give you a salary if you become injured or ill unconnected with work. A company's disability insurance policy is usually a low cost benefit given as part of a group insurance plan.

Disability insurance normallyusually only replaces a part of one's full income, many times as little as half. If you have a home loan to pay, this may seem very inadequate, since a home loan payment can take up to half of one's income in many cases. To protect what is probably your major asset, you may want to make sure you can keep up with your mortgage payments if you are sick for a while.

Your mortgage disability insurance is important in this situation. When you carry this kind of insurance, your home loan is paid by the policy, even if you have other disability insurance.

If you have life insurance of sufficient size, or mortgage life insurance, your family would be able to pay off the mortgage should you pass on. But disabilities are much more likely to happen than death. Would the mortgage be kept up until you were able to return to work so they don't have to risk losing your home? This is the question mortgage disability insurance answers.

If need be, and this is probably the case in most households, this insurance can cover both wage earners in a household. If you or your spouse is injured, and they are covered under the policy, you would still be able to keep up the mortgage commitment for a few years. These payments are made 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. It is important to understand all of the features of the policy before you sign up with an insurance policy, for example what illnesses and accidents will it cover and if there a time lapse before the insurance will "kick in". Once you have made all the comparisons of the policies, you can decide which premiums offer the most coverage for your circumstances.

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