Mortgage Disability Insurance Questions
Below are some of the more common answers for frequently asked mortgage disability insurance questions.
What is Mortgage Disability Insurance?
This is the insurance policy that covers the mortgage payments when the policy holder becomes disabled or ill and can no longer work. The degree of disability is determined by a physician.
How is the mortgage paid under a mortgage disability insurance policy?
That is determined on how the policy is written. Some mortgage disability insurance policies pay in full at time of filing if the policy holder is permanently disabled and will never be able to return to work. Most policies just pay the monthly mortgage payments during the time period of disability. Depending on the terms of the policy, the monthly mortgage payment is made until the disables policy holder passes away where the mortgage is paid off in full, or returns to work.
What happens when there is another type of disability insurance and a claim is filed?
Unless there is a special clause in your mortgage disability insurance policy, the claim will be honored. Sometimes competing policies will only payout 50% due the presence of the other policy, but this is clearly spelled out in the policy.
How is the mortgage disability insurance policy premium set?
This is determined by the age of the policy holder, monthly mortgage payment and type of coverage requested.
Does mortgage disability insurance cover cancer patients?
Yes, most do. But to make sure, before signing any policy look at the specifics of what that particular policy does cover. There are exclusions in every policy. Before signing any policy make sure it has been thourghly read and understood. If there is a clause that is not understood and the insurance agent cannot provide a sufficient answer, ask to take the policy to an advisor. If this is not allowed, then be wary and find another policy with another agent.
Is it a good idea to have Mortgage Disability Insurance?
Yes, this will help keep you and your loved one in your home in case an accident or illness prevents the policy holder for providing an income to support their family.
There are many different mortgage disability insurance questions. The above are the most common ones.