Properties and Apartments

There are not a lot of varieties when it comes to mortgage insurance products. There is mortgage life insurance to guarantee that your home loan will be paid on the event of your death. You can choose decreasing or fixed term, based on the kind of mortgage you have. Disability mortgage insurance means the payment of the mortgage bill during a period of disability when you have no salary.

But behind the basic policies, there are some choices homeowners have to make in terms of their policies.

For example, a mortgage disability policy may be one with partial disability benefits whereby the beneficiary is paid a certain amount during the defined period of the disability or it can be with residual benefits where the beneficiary is paid benefits in proportion to his loss of income.

You may have the choice between short term disability insurance where the policy will be for a maximum term of, for example two years. If you have retirement funds and planned on early retirement, you may not have to have disability insurance to cover your mortgage when you begin that income stream.

Besides the kinds of insurance a homeowner can pick, there are number of optional features, or riders, that can be attached to a policy. Some of the riders usually offered are guaranteed future insurability, non cancelable policy, waiver of premium, inflation protection or guaranteed renewable policy.

Inflation Protection

Buying this rider will mean that your benefit will increase as inflation rises. A rider like as this prevents your disability payment from being too little should inflation heat up.

Guaranteed Future Insurability

If the value of the home grows, whether through normal appreciation or because of improvements, the value of the policy can grow with it, without any requirement for a new application.

Guaranteed Renewable Policy

As long as premiums continue to be up to date, the insurance will be renewable, although premiums may be increased to maintain the same coverage.

Non-Cancelable Policy

With the purchase of this rider, the policy is renewable, and it is protected from increased premiums.

Waiver of Premium

Another popular rider is a feature that allows for the premiums on the policy to be waived upon receiving benefits. It would be an added financial load to have to continue to pay the premiums on the policy after you have become disabled.