Top 5 Situations When You Need Mortgage Disability Insurance
1. You should have mortgage disability insurance if you do not have any other type of disability insurance protection, so that you do not risk being unable to work and losing your home because of this. Mortgage insurance companies offer varying rates on this type of coverage, so that you can comparison shop and get the best possible premium prices on your policy and save money in the process.
2. One of the top situations when mortgage disability insurance is needed is if you become or intend to become pregnant. Pregnancy can interfere with your ability to work and bring home an income, and disability insurance will cover your mortgage payments if this occurs. Your benefit will usually be between fifty and seventy percent of your usual income, but if you can not work because of a pregnancy this can make a big difference in your household income.
3. If you work in an occupation that is considered risky or in a sector that is shrinking then you may want to get both disability and unemployment mortgage insurance. If you are hurt on the job then your benefits may not be enough to cover your mortgage payment and still meet other expenses. If you are unemployed then your unemployment check may not stretch far enough. These two policies can cover all the bases.
4. If you are in your thirties or older when you take out a mortgage then mortgage disability insurance can be a smart financial move in many cases. As you age the likelihood of becoming disabled increases and many financial advisers recommend both disability and mortgage life insurance policies to protect your home, and any survivors if you pass away.
5. Another situation where mortgage disability insurance should be advised is if you have a high dollar mortgage, and a high monthly mortgage payment. You do not have to take this insurance from your lender though, because even the best home mortgage lenders may not offer the lowest insurance rates. It is better to get several quotes and then compare them.