Mortgage Disability Insurance - A Brief

There are schemes that help you pay off housing loans if you are disabled and unable to continue working for a livelihood. Mortgage disability insurance is a customized form of hedging against the risk of disability. Mortgage insurance covers you against future payments. The insurer will pay your mortgage payments on your behalf, in case you suffer from any disability in the future.

The mortgage disability insurance gives you peace of mind, especially if you are the sole breadwinner in your family. It gives you the assurance that in case of such events your home is protected and you and your family will still have a roof over your heads. When you become disabled, you will have to submit certain documents as proof to the insurer. On acceptance, your mortgage will be paid by your policy. 

Sometimes, certain companies word their policies in such a way that when it comes to honoring your claim, they will cook up umpteen excuses to escape. So, it is safer to read the fine prints carefully. The internet provides a valuable source of information and you can get your policy through a recognized insurance company.

Further, your disability insurance can get you only a certain amount of benefit that is mainly based on your salary at the time you became disabled. In most of the cases, the benefit is only between 50% and 70% of your salary at the time you lost your ability to function normally. Then again, covering yourself with more similar insurance policies to increase your returns to take care of similar eventualities is not at all beneficial. In all probability, your mortgage disability insurance will have a condition under which you cannot receive coverage, provided these other policies cover you for less than half of your earnings.

The following documents will be required to make a mortgage disability insurance claim:
* Mortgage disability policy
* Mortgage loan documents
* Mortgage statement
* Disability claim form
* Statement from physician

Visit your primary physician and obtain a note describing the nature of your disability and also stating that it is permanent. Ensure that you get more copies of such a statement. File a disability claim with the federal government as well. The more the documents you have confirming your disability, the better will be your prospects of getting approval of your claims.

Contact your employer and get a written letter confirming the nature of your disability as also the prospects of returning to work. If you are permanently disabled, your employer will quite naturally state so. He should also attach your salary slip. Get an approval of your disability from your local Social Security office. Then the mortgage disability insurance company will have no alternative but to accept your disability claim.

As soon as you are injured or disabled, it is advisable to intimate your mortgage disability insurance provider of your condition in writing. The claim process could extend to several weeks, as they will scrutinize your documents. Review all terms and conditions in your policy. Some companies are very particular on the documentation process. Article Source: http://EzineArticles.com/?expert=Ruth_Caldon