Picking The Right Mortgage Disability Insurance Coverage

Disability insurance covers some or all of one's income in case one finds oneself unable to work

. Some states have disability insurance as part of a package of programs like unemployment insurance and workers compensation insurance. The concept is like unemployment insurance in that if your salary is cut off, in this case because you cannot work, not because you have lost your job, you will still receive an income.

There is a policy called workman's compensation insurance, which will cover an employee injured on the job. The kind of disability insurance offered by an employer is normally part of a group plan, and is not transported from job to job.

Disability insurance normally only replaces some of one's full income, many times not more than half. This may not seem enough to a lot of people, who today are paying half of their salaries just to make their mortgage payments. And since your home is probably your most important asset, youshould want to protect it.

This is the reason people buy mortgage disability insurance. When you carry this kind of insurance, your mortgage is paid by the policy, even if you have other disability insurance.

If you have mortgage life insurance, the entire mortgage balance will be paid off if you die. However, disabilities are actually more common in a working person's life. Can your family continue to afford the mortgage if you couldn't work for a while? This is the situation that a mortgage disability insurance policy would be for.

Many times, the salary of both wage earners is necessary to pay the mortgage; in this case, both should have coverage under a mortgage disability policy. If you or your partner is injured, and they are covered under the policy, you would still be able to make the mortgage payments for a few years. These payments are made in addition to any other disability insurance you may be receiving.

There are different features to each mortgage disability policy, so be sure to understand each. Some illnesses are not covered and most policies have waiting periods, some longer than others. Once you understand and compare a number of policies, you will be in the best position to pick the best one for your needs.

by: Brittani B. Bowen

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