Why You Need Mortgage Disability Insurance

Mortgage disability insurance has become a great option for families who are worried of an accident occurring and leaving there family in a financial crisis due to them being incapacitated or unable to work. Not being able to work and bring in an income to help make he mortgage payments can leave any family in financial ruin. 

This is a great reason to consider a disability policy to help protect everyone in the home. If the house that is being lived in is the largest asset that the family owns than this should be a number one priority to consider.

Some business offer disability insurance for there employees. These policies should be looked at very carefully due to the fact that they are normally written in favor of the insurance company and not the policy holder. There are sometimes many loopholes in a business disability plan like how many hours a week an employee works or how many years they have worked for the particular company. 

All these factors can void the employees disability benefits so one must make sure they qualify. One must do there due diligence to make sure they check the policy over with an attorney to make sure they are fully covered in case of an incident. It is well worth the $100 you will pay for an attorney's consultation.

The purpose of mortgage disability insurance is to give the insurer peace of mind that they will be covered in case of a serious event. The United States government can also help in case of a disability or impairment as well. This is part of the social security that one pays as part of his or her paycheck through there paycheck. It is possible to receive social security benefits early if someone is disabled in there job, work place, or struck by a sudden illness. It is just not easy to qualify for social security benefits and the process is very time consuming. A house can be lost way before a decision is reached by the government which should make it the last option.

Alan provides information about Mortgage Disability Insurance through his website on Mortgage Disability Life Insurance Article Source: http://EzineArticles.com/?expert=Alan_Karpuch

Understanding Mortgage Disability Insurance

Mortgage disability insurance is a type of insurance that people take in case they became disables for any reason for a short period of time or permanently. We all have to face the fact that bad things might happen to us in the future and the most responsible things you can do on your part is to take this mortgage and secure your family's future. The keyword in all this is protection. By taking this mortgage you are simply trying to protect your family.

The thought of not being able to care for your kids is unbearable and no one should have to think about it not even for a second. However life happens and we can't always be prepared for anything that comes our way. Just like we pay for our health insurance every month because we want to protect ourselves in case something medical happens the same goes for this type of insurance.

If you are considering getting mortgage disability insurance then the best thing you can do is to find a mortgage disability insurance representative that will help answer all your questions.

Its important that you understand every step in this process and that you fully understand what you will be covered for. if you are truly unable to work and you have no money coming in then this insurance will guaranty that you still have a paycheck coming in the worst thing that can happen to you is if you lose your job because of a disability and in the end you will also lose your house because you are unable to make the mortgage payments. 

If having this mortgage makes sense for you and your family then make the necessary steps you need to get it as soon as possible. Don't put something so important on hold.

Alan provides information about Mortgage Disability Insurance through his website on Mortgage Disability Insurance. Article Source: http://EzineArticles.com/?expert=Alan_Karpuch

Mortgage Disability Insurance Will Allow You to Sleep Better

Are you afraid of what would happen to your family if you got injured?  This article will discuss how buying mortgage disability insurance will allow you to sleep better. Mortgage disability insurance will allow you to sleep better because if you become disabled, your home is protected. When you become disabled, you mortgage will be paid by your policy.  You will be the one who decides whether you will sell your home, not your bank.

The possibility of foreclosure is significantly reduced when you purchase the right disability policy. 

There is nothing more helpless than being disabled and not being able to work, when bills piling up and not having the ability to do anything because of an accident or illness that is not of your choosing. This is the purpose of mortgage disability insurance.

The fear is real. In the year 2008, the foreclosure rate in America rose again by 17.77% from the previous year with a quarter of a million homes being taken back by banks. South Carolina had the highest percent of change from January 2007 to December 2008 at 462%, followed by Oregon at 219%, Hawaii at 174%, Nevada at 137%, North Dakota at 126%, Idaho at 106% and Illinois at 85%. Foreclosures are on the rise almost everywhere.

For the month of May 2009, the foreclosure rate hit a new record high with one out of every 374 homes in America being the recipient of a foreclosure notice of some form. The states with the highest foreclosure rates in the year 2009 so far are Nevada, Florida, California, Arizona, Idaho, Utah, Georgia, Illinois, Colorado and Ohio. It has been reported by several different including Realty/Trac that almost half of these foreclosures are due to a disability of the primary bill payer of the home.

Do not become a statistic and lose your home. Mortgage disability insurance will allow you to sleep better and allow your family stay in your home.

To find out more about mortgage disability insurance visit - mortgage disability insurance This site is dedicated to answering your questions about this insurance. Check out my mortgage disability insurance guide Article Source: http://EzineArticles.com/?expert=Mark_V_Collins

Mortgage Disability Insurance Explained - Do I Need Mortgage Disability Insurance?

Do I need mortgage disability insurance? This article will help you to answer this question, but only you can ultimately determine this for yourself.

The answer to this question depends on your personal financial status. If you are a person with considerable wealth or have savings that can cover the cost of your mortgage, then maybe this insurance is not necessary.

If you come from a wealth family that has enough disposable income to cover your mortgage then you may also not need mortgage disability insurance. If you do not care if you and your family lose your home if you become disabled then once again the answer is no. If you do not fit into one of the above categories then an investment into mortgage disability insurance is a wise choice.

With the odds of becoming either permanently or temporarily disabled hovering around 10%, there is a good chance that even if you have not been the one injured, you know someone that has. Look at how they coped with the sudden loss of income. For many without this essential insurance the loss of income is not the only thing to go, just the first. The added strain of the loss of income breaks apart many relationships. Whether it is a marriage or just living together, the lack of funds and the piling up of bills puts a great strain on all relationships.

For most, the small cost of mortgage disability insurance is worth the price to ensure not only your family but way of life is maintained even if you are not able to provide any more.

Having said all that, I find that if someone is asking this question, then their financial situation probably is such that they will benefit from mortgage disability insurance. 

For a complete guide to this insurance, check out my mortgage disability insurance guide. You can also find more information on determining whether you need this insurance at my article on why you need mortgage disability insurance. Article Source: http://EzineArticles.com/?expert=Mark_V_Collins

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

Mortgage Disability Insurance - Which Plan Is Best?

So, you finally got your mortgage approved and the lender says to you, how about some insurance? Since the lender was so wonderful with your loan, you listen carefully and decide right there and then to take a so called mortgage disability insurance plan through that same lender (and often mortgage life too). Is it the right thing to do? I would venture to say that most time it is.

First of all, when I ask people about the disability insurance plan they got through their mortgage lender, they have no idea what coverage they really have. It may seem crazy unfortunately common.

What to look out for with disability insurance offered by mortgage lenders?

• First of all, the plan is not really yours. In other words, when you joined the insurance program through the lender you became part of a certificate. What that means is, you became part of a group of people who also took out a policy with that same lender. So, if the lender sales the loan the new lender may not want to continue the insurance. Or if the lender decides to discontinue the offer, then you no longer have mortgage disability insurance coverage.
• Second, sometimes the mortgage disability insurance plan does not cover you for disabilities that resulted form an illness. In other words, some of those disability insurance plans only paid in case of an accident!
• Last, assuming that the plan does cover you for anything and everything, the benefit period often is only two years. What that means is that if you become disabled, then your mortgage payments will only be covered for two years. A little short don't you think? Particularly, since most mortgages are 15 to 30 year mortgages.

Is there ever a time when the mortgage disability insurance plan through a lender is a good thing to do? The answer is yes. There may be some other convincing reasons but these are the top two we have encountered. If you are not in good health and nothing else is available, then the disability insurance plan through your mortgage lender may be a great idea. If you do not think that you will take the time to get anything else (that is a bit like being responsible because you are irresponsible), then take the plan offered by the lender and we hope you will quickly replace the lender's insurance with something more adequate.

What other options are best for a mortgage disability insurance plan

The answer is actually very simple, get an individual disability insurance plan from a reputable company. Here are the main reasons:

• If you get your own plan, the only one who can cancel the plan (assuming no fraud is involved) is you. So now you don't have to worry about your lender canceling the coverage and on the other hand, you can decide to cancel your loan and refinance without any worries about your disability insurance coverage. No need to worry about higher premiums every time your loan changes, no worry about re-qualifying (medically) and no worry about what the new plan you may qualify for will offer.
• When you shop for your own plan, I am sure (or I hope) that you will get a plan that is more adequate to your mortgage insurance needs. In other words, if you have a 15 year mortgage, you will select a plan that covers that need. I hope that you will get a mortgage disability insurance that does not just cover your mortgage in case of a accident related disability but rather one that will cover you no matter happens.
• How about riders? What are those? Well the details of riders for a disability insurance policy is beyond the purpose of this article but important nonetheless. So, I will just say this. Riders can be specific to the needs of mortgage disability insurance. By riders I mean, additional benefit your disability insurance plan offers (lenders don't offer these) that will enhance the plan you have selected. An example would be the retroactive injury benefit rider, or the hospital benefit rider, or the return of premium rider.

By the way, one good reason people select the return of premium rider is because, it can unable someone to pay off their mortgage early using the cash back feature offered by that rider. Please also keep in mind that the riders mentioned above can come under different names. I only want to make you aware of the options of riders so that you may ask about them as most people do not seem to.

A few facts about becoming disabled and mortgages

According to the US Department of Housing and Urban Development, nearly half of all foreclosures are caused by disability. On top of that, according to the Social Security Administration, one in five people suffer long-term disability before the age of 65. If you put two and two together, it's pretty clear that disability is one of the most significant threats to your home.

Don't let yourself become a statistic. With a mortgage disability insurance plan in place, you can rest assured that your home is paid for regardless of your health (assuming you get the right plan). If illness or injury should occur (note that I said illness OR injury), you can focus on recovery instead of worrying about how the mortgage bill gets paid.

We hope this article gave you a better understanding of the plans available for mortgage disability insurance. When it comes to insurance at least, most information is free and so are questions to an advisor. Irregardless of who you select for your insurance needs, as we say in all of our articles, ask, ask and ask more questions about the plan you choose. Be well.

Philippe Deray - About the Author: Philippe Deray is President and CEO of MCD Financial Services and MCD Life. Our web site address ishttp://www.mcdlife.com Company Profile MCD Life is a successful, dynamic company built on the principal of serving our customers FIRST! Our primary mission is to bring peace of mind to our clients by offering innovative, value-added products and information that place emphasis on short and long term benefits, benefits backed by selected companies with high quality assets and written guarantees. Our Focus is Mortgage Disability Insurance With many years of experience in the insurance business, we have developed proprietary methods to help individuals get affordable insurance. We offer term insurance, whole life and universal life insurance. We will make this process as simple as possible and get you an answer as fast as possible. Article Source: http://EzineArticles.com/?expert=Philippe_Deray