by Chuck K. Boucher
The purpose of mortgage disability insurance is to assure that you and your family will be able to live in your home even if you are disabled and can't pay the mortgage. But there are some important things that you should watch out for when you are shopping for mortgage disability insurance.
First of all, you have to locate a policy that you will qualify for, but there are insurers that offer policies without a a physical.
The next feature to be wary about is how fast you can get your benefits. When you have to wait a long time to receive the benefits, it may not be that much of a benefit. If you choose a policy with a long elimination period, be sure you have enough cash savings to pay your home loan in the interim. There is also the issue of the time it takes to process your claim, which means that much longer that your payment is not paid. Be sure you read the fine print and understand when you will be covered. The more expensive the policy, the more likely you will have the best coverage. Do the math; it can be cheaper to put aside funds each month to cover yourself against the shortfall period.
Another concern is whether you should insure only yourself or yourself and your spouse to make sure the mortgage continues. If both salaries are important, disability insurance should be carried for both earners. It may seem far fetched that both parties lose their salaries, but an accident that they are both in would do this.
You also have to know exactly what is seen as a disability by the insurance company. There are very wide definitions as well as narrow ones, so make sure you are comfortable with the definition.
Mortgage disability insurance is not mandatory; you have to choose it. It is an excellent idea, but not obligatory, and you should decide upon it because you think it is important. Any bank that puts such a clause in your lending agreement is not acting ethically honestly. Each borrower has the right to obtain mortgage disability insurance from any insurance company he chooses. - 41115
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New Unique Article!
Title: What To Be Aware Of When Looking For Mortgage Disability Insurance
Author: Chuck K. Boucher
Email: gregory@vanduyse.org
Keywords: alberta mortgage rates,alberta mortgage brocker,alberta mortgage
Word Count: 364
Category: Finance:Credit
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