Disability Mortgage Insurance Benefits

Every home owner should take the time to look into disability mortgage insurance. Depending on the job you have it may, or may not, be something for you, but the insurance is something that should be thought about.

Disability mortgage insurance is an insurance you can buy that will pay off your mortgage in the event that you become disabled. You are, in essence, buying insurance against something that does have a chance in happening. However, many people will turn it down without considering the full effect of what the insurance is for.

Peace of Mind

When you have a large monthly mortgage over your head that continues to have to be paid by a certain date, there is a great amount of fear when your employment is suddenly cut off. For many people, this can have very serious consequences. Bankruptcy and even foreclosure are very real possibilities.

When someone has a temporary or permanent disability, having some sort of protection against the thought of the looming mortgage payment gives some very sound peace of mind.

Payment of Mortgage

Disability mortgage insurance is for use in situations where you have become either temporarily, or permanently disabled. This insurance will continue making your mortgage payments, or even pay it off depending on home much is left.

While this type of insurance is something a lot of people should consider there are those that can potentially benefit from it more than others.

Elderly - As you get older, and continue working, there is more possibility that you may be injured in some capacity.

High Risk Workers - Workers in the field of logging, construction, trucking, and mining are very susceptible to a disabling injury that can happen at any moment.

Required Insurance

In some cases, disability mortgage insurance is required when purchasing a home. If you are buying a new home and are putting less than 20% down then the lender is going to require that you have this type of insurance. This can be added into the payment overall, or as an added monthly payment.

Short Term Solution


While it is important to think about purchasing disability mortgage insurance for your home, it should be also noted that this insurance is a short term solution. An insurance company that holds your disability mortgage insurance will only pay a certain amount of the mortgage, or for a certain period of time.

Partial Payment - In the even of a disability, the insurance will only pay a portion of the mortgage. This number will be different for either short term disability or a permanent disability. Once that portion is paid, then you will be responsible for picking up the payments again.

Set Period - Disability mortgage insurance companies might only pay the mortgage for a specific period of time. This could be anywhere from six to twelve months depending on the severity of the disability and the individual company.

Peaceful Solution


As stated, you are buying insurance in the event that something unfortunate should happen. If this unfortunate injury does occur, then you have peace of mind knowing that for a set period of time your mortgage is going to be paid. This gives you time to get adjusted to your disability, and secure other means of securing your mortgage.

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