by Brandon P. Nadeau

There exist only two mortgage insurance products. Mortgage life insurance pays down your mortgage if you pass on. This can be either decreasing term or fixed term, depending on the nature of your mortgage. The other kind of mortgage insurance is disability that will keep paying your monthly mortgage in case you become disabled.

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

First make sure you understand whether you have picked a partial disability policy, with a predefined bebefit or a residual policy, with an amount based on current salary.

Short term in addition to long term disability exists and you may decide to take short term if you feel you have other income that will start at a certain point. This is usually the kind for someone who has another policy that would cover his expenses in at a later age.

In addition to picking a policy, the buyer will have to decide between a choice of riders available. 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 goes up. This will protect the mortgage benefit from being too little to pay your future home loan payments.

Guaranteed Future Insurability

The value of your residence may increase due to market forces or improvements you have made, but if you purchase this rider, you will be guaranteed that you can increase the insurance to cover it, without re-applying.

Guaranteed Renewable Policy

This rider assures that the policy will always be renewable (as long as premiums are current, though they may go up.)

Non-Cancelable Policy

This rider will renew the policy and also will protect the premium from increase.

Waiver of Premium

Once you start collecting a benefit, the premiums are no longer due under this rider. This means that when you are disabled, you do not have to keep on paying the premiums on your mortgage disability policy.

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