Individual Disability Insurance Policies May Serve Property Owners Better Than Mortgage Insurance
Frank N. Darras strongly advocates that property owners shop for individual disability coverage as an alternative to mortgage disability insurance.
Darras says mortgage disability policies marketed at the tail end of escrow usually have less features and provide fewer protections than if the consumer shopped for individual coverage outside of a real estate purchase. See www.DarrasLaw.com .
“The first step in the process is to find a licensed insurance agent that you know and trust. Make sure you buy an individual disability policy that will provide enough in a monthly disability benefit to keep a roof over your family’s heads, food on the table, clothes on the kids and gas in the family cars,” says Darras.
Next, always buy individual, non-cancelable, guaranteed renewable coverage with occupation specific protection for 5 years or preferably till age 65, if your budget allows. That way, if disability strikes and you are forced to move to make ends meet, you’ll still collect a monthly disability benefit.
Mortgage disability insurance is expensive and pays only your monthly mortgage during the first 24 months of disability if you’re unable to do the important duties of your occupation. After 24 months, the homeowner has to be unable to do any occupation by which they are trained, educated or suited to have their monthly mortgage paid.
“Wouldn’t you rather be in control of how you spend your monthly disability benefit,” asks Darras? “Individual disability policies protect your most valuable asset, your earning potential, so why not get as much as you can afford so you can decide what’s best for you and your family,” says Darras.
“With talk that the real estate market is poised for a downturn, it is important for those tied to the industry, who would be most affected by such a turn: real estate agents and brokers, mortgage bankers and brokers and those in the title insurance area; to keep their disability policies in force to protect their families in the event of an extended sickness or injury,” Darras says.
“Becoming disabled alters your life in so many ways and often is devastating,” says Darras. “If and when disability strikes, seek a competent and trusted opinion from a disability lawyer who can walk you through the features, advantages and benefits of your coverage, educate you on the claim process and guide you through the complex and difficult task of perfecting your claim.”
For over 19 years, we have proudly provided free consults and guidance to many thousands of good people from the real estate industry with policy, claim and litigation concerns.
Be a smart shopper, buy the right policy and if you have questions or concerns ask for competent help!