South France Immobilier Property & Luxury French Real Estate by RHF International

You may be familiar with disability insurance, which is an insurance policy that assists you in case you cecome disabled and unable to work. There are government programs that give such insurance, and a number of firms offer group disability insurance to their employees. It works similar to an unemployment program but kicks into play if you can’t work because you become ill or injured, not because there is no work.

Some policies cover 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 offered as part of a group insurance plan.

Disability insurance does not replace all of one’s salary, but usually more than half of it. This may not seem enough to a lot of homeowners, who today are paying half of their salaries just to make their mortgage payments. To protect what is probably your major asset, you may want to make sure you can manage your mortgage payments if you are sick for a while.

This is where mortgage disability insurance steps in. If you have mortgage disability insurance, your mortgage will be paid through the policy, regardless of any other disability policy you may have.

If you have life insurance of appropriate size, or mortgage life insurance, your family would be able 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 help here. Can your family continue to pay the mortgage if you couldn’t work for a while? 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. These payments are made in addition to any other disability insurance you may be getting.

The terms for which the policy can be called differ from company to company and even from policy to policy. It is important to be clear on all of the features of the policy before you commit to an insurance policy, such as what illnesses and accidents will it cover and if there a time lapse before the insurance will “kick in”. Once you have made all the comparisons of the offers, you can decide which premiums offer the most coverage for your circumstances.