Term Life Insurance Ontario: What Does Mortgage Disability Insurance Cover?
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You may be familiar with disability insurance, which is an insurance plan that assists you in case you cecome disabled and unable to work. This kind of insurance may be provided by state governments, or by one's employer. The concept is similar to 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.
There are workman's compensation disability policies, which are related to loss of job due to accident or illness on the job, but many policies cover all disabilities, job related or not. A company's disability insurance policy is usually a low cost benefit offered as part of a group insurance plan.
Disability insurance normallyusually only replaces some of one's full income, many times not more than half. As we all know, making the mortgage payment each month is difficult enough with 100% of your salary; picture the burden if you were only receiving 2/3rds of your salary. If you have a lot of money invested in your house, you will want to make sure you can keep up the payments.
This is the role that where mortgage disability insurance is intended to play. If you have mortgage disability insurance, your mortgage will be paid through the policy, regardless of another disability policy you may possess.
If you have life insurance of sufficient size, or mortgage life insurance, your family would be in a position to pay off the mortgage should you pass on. But a disability can wreak a great deal of havoc, and life insurance will of course not kick in. 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 contingency that a mortgage disability insurance policy would cover.
If need be, and this is probably the situation in most homes, this insurance can cover both wage earners in a household. 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 provide cash for you to pay your mortgage or up to two or three years, depending upon the policy. Any other disability payments would not be disrupted.
The terms on which the policy can be called are different from company to company and even from policy to policy. It is important to understand all of the features of the policy before you commit to 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 understand and compare a number of policies, you will be in the best position to choose the best one for you.
Article Source: Articlelogy.com
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