Mortage Insurance In Alberta: What Does Mortgage Disability Insurance Protect you from?
Jun 3, 2009 Real Estate Properties
Top Sites For Real Estate:
The concept behind any kind of disability insurance is simple: it is to provide salary in case salary is cut off due to accident or illness. There are government programs that give such insurance, and many firms offer group disability insurance to their employees. Unemployment insurance is intended to give you some salary in case your job is downsized or eliminated, and workers comp insurance gives you some salary and also covers your medical bills in case you are injured on the job.
In addition, there are disability insurance policies that will provide you with a salary if you become injured or ill unconnected with work. Disability insurance is frequently a benefit given by employers at a low rate since it is part of a group package, and employees always have the right to subscribe to more if they want to.
Disability insurance does not replace all of one’s salary, but usually more than half of it. As we all know, making the mortgage payment each month is difficult enough with 100% of your salary; imagine the burden if you were only receiving 2/3rds of your salary. To protect what is probably your biggest asset, you may want to make sure you can keep up with your mortgage payments when you are sick for a while.
This is where mortgage disability insurance takes over. When you carry this kind of insurance, your home loan is paid by the policy, even when 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 die. But would your family be able to pay the home loan if you became sick or disabled and unable to work? Can your family continue to afford the mortgage if you were not able to work for a while? This is the situation that a mortgage disability insurance policy would cover.
In addition, as is the situation with so many of today’s households, both earners can be covered if they both contribute to the mortgage. If you or your partner is injured, and they are covered under the policy, you would still be able to keep up the mortgage payments for a few years. Any other disability payments should not be disrupted.
You have to understand the terms under which you can access the policy; they differ greatly. 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 best coverage for your circumstances.
Related Articles
Tags: "mortgage, home, Insurance, life insurance, Mortgage Life Insurance, Real Estate, Real Estate Properties
Leave a Reply