(Mortgage Disability) How Much Coverage Do You Need To Protect Your Home
Taking out a mortgage disability policy is a smart way to ensure you will be able to pay your mortgage and keep your home if you become disabled. No matter how much you may have put aside in savings, if you face a long-term absence from work you may find it difficult to pay your mortgage for the duration. Having an insurance policy in place to pay your mortgage is an important part of your comprehensive insurance package.
Choosing Mortgage Disability
Obviously, the most important thing to consider when you choose mortgage disability coverage is the monthly payment you make on your mortgage. You need to take out a policy that can cover the entire monthly payment, otherwise you will need to make up the difference. Be sure to review your policy regularly to make sure it remains accurate, as a refinance or change in your mortgage loan could change the amount you pay every month.
The other important factor to look at is the length of time you will need coverage. While most mortgage disability policies are intended for a longterm situation, there are a wide variety of policies and a great range in the length of time for which the coverage is provided.
If You Have Other Coverage
You may have a policy that provides you with a certain amount of money to pay for living expenses, such as a disability policy that is a part of your employment benefit package. In this case, you might need a mortgage disability policy to fill the gaps and cover you specifically for that purpose, leaving the other coverage to pay for utilities and other expenses.
Don’t assume that the coverage you have is enough to pay for your mortgage as well as all other living expenses. Take the time to do the math. Once you know how much coverage you already have, you will know what you need from a mortgage disability policy. Of course, it’s always a good idea to have more coverage than you think you need, so consider increasing benefits wherever possible.
Your insurance agent can walk you through the process of selecting a mortgage disability policy to match the rest of your insurance package. Creating a comprehensive disability plan that covers all your bases should be the primary goal; be sure you have the right combination of policies to protect you in case of a long-term illness or injury.