If you have slaved for a number of years to buy a home, you most likely have thought about ways to protect it.

You may have fire and casualty insurance, but how about when something happens to you, and you may lose the home? There is an added insurance that protects this from happening. The mortgage and insurance industry offer both life insurance and disability insurance on your residence.

If a family loses the salary of one or both of the main earners, it is almost guaranteed that the mortgage will not be paid and the home will be forfeited.

Even though any type of life insurance is difficult to think about because it involves the thought of death, one has to face the real possibilities. But a good family man will want to protect his family in the case he is not there to make the monthly mortgage payment.

The benefit of a mortgage insurance policy covers the payoff of the mortgage in case of the insured’s death. One kind of mortgage life insurance policy is a decreasing term policy, in which the payout goes down over time, just as a mortgage balance goes down over time.

But the death of the breadwinner is not the only threat to home loan payments-if the homeowner is disabled, he will not be able to afford the payments either. In the case of disability insurance, the monthly payments are made while the insured is disabled. Some people think this is not a necessary insurance if they have disability insurance at their place of employment, but be aware that this insurance only covers 60 to 70% of earnings, and that may not be enough to pay all expenses, including the home loan.

Many consider mortgage disability insurance more critical than mortgage life insurance since the odds of becoming disabled are much better than the odds of dying during your working years.

In addition, in this era when many, if not most families cannot buy a home unless there are two salaries to support it, joint coverage may be chosen and each of the insured parties is covered for half of the mortgage payment. It would not be out of the realm of probability to imagine both income producers becoming disabled because of an accident, but with this kind of policy, the home would still be protected.

Find extra information on this subject at: assurance hypothcaire and assurance hypotheque

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