There are some major differences between mortgage disability insurance and mortgage protection insurance. We will discuss in detail the benefits and downfalls of both so you can make an educated decision on which would be right for you and your family. There are a few factors to consider when making the choice between the two forms of mortgage insurance. Both forms of insurance can be helpful in there own way but it really comes down to what scenario are you most concerned about.
Mortgage disability insurance is a form of insurance that is used to protect the mortgage holder in the case of being disabled. The disability can range from illness or from being hurt and not being able to work. This insurance can also step in to help even if you are able to work but not until a given time. You will be amazed at how many family’s a year are affected by these type of scenarios when one person in the family can not work due to illness or disability. Mortgage disability might be a good option for people that work manual labor jobs due to the fact that you are much more prone to be disabled with a job like that than a desk job.
Mortgage protection insurance is very different from mortgage disability insurance. Mortgage Protection insurance kicks in when the mortgage passes away which in tern pays off the mortgage completely. It will NOT kick in if you are disabled. It only works if someone dies and does not want to leave the mortgage financial burden on his or her spouse. The same is true for mortgage disability insurance has nothing to do with death. If you are disabled the insurance will help you pay the mortgage payments if you or your spouse would die the balance that is left on the mortgage will still be owed the your spouse or significant other. Make sure that you consider both options when making the decision between mortgage disability insurance and mortgage protection insurance.