|
|
Canada Life Insurance Quote: Deciding Upon Which Mortgage Disability Riders are Right for You
There are not a lot of varieties when we talk about mortgage insurance products. There is mortgage life insurance to make sure that your mortgage will be paid on the event of your death. This kind of insurance can be decreasing term or fixed; your type of mortgage will determine which. Disability mortgage insurance guarantees the payment of the mortgage bill during a period of disability when you have no salary.
But behind these basic policies, there are some choices homeowners have to make in terms of their policies.
In discussing a mortgage liability insurance policy, be sure you understand whether your broker is discussing a partial disability policy where you get a predefined amount during the disability period, or a residual policy where you get a percentage of your income.
You may have a choice between short term disability insurance in which the policy will cover a maximum term of, for example two years. If you have retirement funds and planned on early retirement, you may not need to have disability insurance to cover your home loan when you begin that income stream.
In addition to picking a policy, the buyer will have to choose between a choice of riders available. These may be inflation protection, guaranteed future insurability, guaranteed renewable policy, non cancelable policy and waiver of premium.
Inflation Protection
Purchasing this rider will mean that your benefit will go up as inflation rises. This will protect the mortgage benefit from being too little to pay your future mortgage.
Guaranteed Future Insurability
The value of your residence may increase due to market forces or improvements you have made, but if you buy this rider, you will be guaranteed that you can increase the insurance to cover it, without re-applying.
Guaranteed Renewable Policy
As long as premiums continue to be up to date, the policy will be renewable, although premiums may be increased to maintain the same coverage.
Non-Cancelable Policy
This rider will renew the policy and also protects the premium from increase.
Waiver of Premium
Another popular rider is one that that allows for the premiums on the insurance to be waived upon receiving benefits. This means that while you are disabled, you will not have to keep on paying the premiums on your mortgage disability policy.
|
 |
Please Rate: |
|
Rating: |
 Processing ... |
(Average: Not rated) |
| Views: | 53 | |
|
| More Articles from Mortgage | | |
| Top Articles in Mortgage | | |
|
