Mortgage Insurance Quote In Ontario: What Does Mortgage Disability Insurance Cover?
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Disability insurance can cover some or all of one's salary in case one is able to work. This type of insurance may be provided by state governments, or by an employer. It works similar to an unemployment program but comes into play if you can't work because you become ill or injured, not because there is no work.
Some policies are for illnesses related to the job, but many are for any illness or injury that prevents you from earning a salary. A company's disability insurance policy is usually a low cost benefit given as part of a group insurance program.
These kinds of programs are not meant to replace your old salary, since they usually only cover a maximum of about 2/3rd of it, and usually less than half. This may not seem enough to a lot of homeowners, who today are paying half of their salaries just to make their mortgage payments. If you have a lot of money invested in your home, you will want to make sure you can keep up the mortgage.
This is where mortgage disability insurance steps in. If you have mortgage disability insurance, your mortgage will be paid through the policy, regardless of another disability policy you may possess.
Life insurance may, if it is large enough, cover the amount of the outstanding mortgageon your home. But a disability can wreak a great deal of havoc, and life insurance will of course not help here. Would the mortgage be kept up until you were able to return to work so you don't have to risk losing your home? This is the question mortgage disability insurance addresses.
If need be, and this is probably the situation in most households, this insurance can cover both wage earners in one household. If you or your partner is injured, and they are covered under the policy, you would still be able to make the mortgage payments for a few years. You will still get other disability payments to cover other living expenses.
You have to be clear on the terms under which you can access the policy; policies differ greatly. Make sure understand and are at ease with all of the terms, since not all illness will be covered, and there may be waiting periods. Once you understand and compare a few policies, you will be in the best position to choose the best one for you.
Some policies are for illnesses related to the job, but many are for any illness or injury that prevents you from earning a salary. A company's disability insurance policy is usually a low cost benefit given as part of a group insurance program.
These kinds of programs are not meant to replace your old salary, since they usually only cover a maximum of about 2/3rd of it, and usually less than half. This may not seem enough to a lot of homeowners, who today are paying half of their salaries just to make their mortgage payments. If you have a lot of money invested in your home, you will want to make sure you can keep up the mortgage.
This is where mortgage disability insurance steps in. If you have mortgage disability insurance, your mortgage will be paid through the policy, regardless of another disability policy you may possess.
Life insurance may, if it is large enough, cover the amount of the outstanding mortgageon your home. But a disability can wreak a great deal of havoc, and life insurance will of course not help here. Would the mortgage be kept up until you were able to return to work so you don't have to risk losing your home? This is the question mortgage disability insurance addresses.
If need be, and this is probably the situation in most households, this insurance can cover both wage earners in one household. If you or your partner is injured, and they are covered under the policy, you would still be able to make the mortgage payments for a few years. You will still get other disability payments to cover other living expenses.
You have to be clear on the terms under which you can access the policy; policies differ greatly. Make sure understand and are at ease with all of the terms, since not all illness will be covered, and there may be waiting periods. Once you understand and compare a few policies, you will be in the best position to choose the best one for you.
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