MORTGAGE DISABILITY INSURANCE VERSUS INDIVIDUAL DISABIILTY INSURANCE

2007-03-08 10:33:40

( Health )



What is Disability Insurance?

Disability insurance is a health insurance designed to provide you cash paid periodically at the time of your disability or inability to earn income due to sickness or injury. Income replacement insurance and weekly or monthly indemnities are the other terms used for disability insurance.

Weekly or monthly payments are the usual payment terms of a disability insurance depending on the terms that you have agreed with your insurance company. The policy coverage will expire once you have availed the benefits of disability insurance. You can only avail its benefit only once.

Mortgage Disability Insurance Versus Individual Disability Insurance

You can either apply for disability through mortgage disability insurance or individual disability insurance. Mortgage disability insurance is a disability insurance policy that pays the monthly payments of your mortgage in the event of your inability to earn income. It is usually created as a rider to mortgage life insurance policy. It is designed to safeguard your ownership on your home in the event that you lost the ability to earn income to pay for your mortgages payment yourself. The amount of your mortgage disability insurance can be computed based on the amounts of your current income, mortgage payments and other expenses that you want to cover in the future in the event of disability.

Individual disability insurance pays you and your family regular cash payments in the event of your disability. The funds are provided to you directly and it is up to you whether you will use the funds to pay for your mortgage payments or any other expenses that you need to pay in the future. The amount of individual disability benefits is usually average to half of your current gross income.

Some experts advised that you could gain more benefits from individual disability insurance than mortgage disability insurance. The latter is said to offer less features and protection than the former. Mortgage disability insurance also is more expensive than individual disability insurance. It only pays for an average of twenty-four months. Individual insurance disability, on the other hand, has more features and protection package to offer you. It allows you to have control over your disability benefits.

Shop around and compare the benefits of these two disability insurances and see for yourself the variance in the cost, features and protection.


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