Often homeowners forget to consider disability mortgage protection insurance (MPI) until it is too late. Few people expect to get injured in a car accident or at work but it happens every day.
If someone cannot work, MPI disability insurance helps families maintain mortgage payments and protect their homes. While some illnesses are minor, others can take weeks or months for recovery.
Discover the importance of investing in this essential coverage.
Create a Disability Plan
A serious injury or illness can mean a homeowner is unable to work for an extended period – which also means not getting paid. If a person is no longer earning an income, they cannot make mortgage payments. This is the point when mpi_disabilty coverage provided a financial net for families and homes. Even those who are healthy today could get hurt or ill tomorrow. Plus, nearly half of all home foreclosures are caused by medical issues that lead to disability. With that in mind, investing in mortgage protection disability insurance provides necessary financial protection to stay in the home rather than losing it due to non-payment.
Do Homeowners Need Mortgage Protection Disability Insurance?
Some people may not have a long-term or short-term disability plan with their current employer, making it wise to invest in disability insurance they own and control. On the other hand, those who have disability insurance at work may no longer be employed at the same employer when a medical event occurs. As a result, families are instantly put into a situation of financial duress. Depending on an employer mean homeowners are stuck at the same job or face financial stress if they are terminated. The benefit of mortgage protection disability insurance is it is paid for by the homeowners and not contingent upon their employment at a specific business.
Is It Advantageous to Bundle Disability Insurance with Mortgage Protection?
It is often cheaper to bundle disability insurance with mortgage protection, making it appealing to many homeowners. However, it is easier to change a policy in the future when it is not bundled with another one. A homeowner who decides disability insurance is no longer necessary can just cancel that policy without having an impact on their life insurance policy.
What are Coverage Options and Waiting Periods?
Depending on the insurance carrier, homeowners can get up to $1,500 to $1,800 monthly in disability coverage, built into a mortgage protection insurance policy. Those who purchase a separate disability policy can get higher coverage.
Based on the insurance company, the waiting period can be from 30 to 90 days from the date of an illness or injury. Many policies let the consumer choose the waiting period. For example, those in high-risk industries may want a shorter waiting period, and homeowners with money in the bank may opt for a longer waiting period because they can cover that time.
Medical conditions and accidents are inevitable, no matter how careful homeowners are to avoid them. Maintaining an MPI disability policy is important to protect the safety and assets of your family, no matter what happens in the future.