Life Insurance Toronto: What Everyone Needs to Understand about Your Mortgage Disability Insurance
You may be familiar with disability insurance, which is an insurance policy that assists you in case you are disabled and unable to work. There are government programs that offer such insurance, and a number of firms offer group disability insurance to their employees. The concept is similar to 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.
Some policies cover illnesses related to the job, but many are for any illness or injury that prevents you from working. A company’s disability insurance policy is usually a low cost benefit given as part of a group insurance program.
Disability insurance normallyusually only replaces some of one’s full income, many times not more than half. If you have a home loan to pay, this may seem woefully inadequate, since a mortgage payment can take up to half of one’s income in many cases. And since your home is probably your most important asset, youwill want to protect it.
Your mortgage disability insurance is critical in this situation. If you have mortgage disability insurance, your mortgage will be paid via the policy, regardless of any other disability policy you may possess.
If you have mortgage life insurance, it will take care of 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? A mortgage disability insurance policy would provide enough funds to make the mortgage payments during the time you cannot work.
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. You will still get other disability payments to cover other living expenses.
There are different aspects to each mortgage disability policy, so be sure to understand each. Some illnesses may not be covered and most policies have waiting periods, some longer than others. Once you have made all the comparisons of the offers, you can decide which premiums offer the most coverage for your circumstances.