Mortgage Disability Insurance

Our most prized possession is our home. While we opt for insurance to protect our homes from natural calamities or man-made disasters, we tend to neglect about what would happen to our mortgage payments in the event of our disability or death. Either of these events will stop our income and that in turn will affect our payments.

Mortgage Life with Disability Insurance

For a home owner, mortgage disability insurance are like the two sides of a coin. In order to preserve your property for you and your family, you may go for a mortgage life insurance policy. However, if you want to retain your home, even in the unfortunate event of being permanently disabled, a mortgage disability policy will help you.

Mortgage Life Insurance.

There are several policies that provide death benefit which may be used to pay off your mortgage. However the most preferred policy is the decreasing term life insurance policy.

The advantage with this policy is that the death benefit decreases as your mortgage balance keeps reducing as a result of which the premium that we need to pay would also reduce with time.

Even though this is the best mortgage life insurance, let us also look at other options available.

Level term life policies.

The advantage of the Level term life policy is that you can choose a policy depending on the duration of your mortgage period. If the term of your mortgage is 20 years then you can buy a 20 year term policy. Similarly if you have 15 years to pay off your mortgage, then you can buy a 15 year term policy.

The other option is to opt for a whole or variable life insurance. This is suitable if you plan to redeem the mortgage before time. At some stage between 10 to 15 years of the policy, the cash value of the policy will be almost equal to the amount owed on your mortgage.

Mortgage disability insurance is the safest option available. In most of the cases, all our savings are invested into the purchase of our home. We keep making our mortgage payments and we know that in the event of our death, the mortgage life plan will ensure that the home is owned by our loved ones.

However, we would get into trouble, if we are disabled and are not able to earn. We may not be able to make mortgage payments till we recover. This is where the mortgage disability insurance helps us in retaining our homes even if we are disabled.

The most popular and leading mortgage disability insurance companies are

State Farm’s Mortgage Disability Income insurance
American Financial Mortgage
1st Financial Mortgage
Citi Financial Mortgage
Wells Fargo Mortgage
National City Mortgage
Fairfield Financial Mortgage
Option One Mortgage
Sun Trust Mortgage
GMAC Mortgage
Liberty Financial Mortgage
Lenox Financial Mortgage