Mortgage Disability Insurance
Definition
- A type of disability insurance that covers the policyholder's monthly mortgage payments in the event that he or she becomes completely unable to work due to an unexpected injury or medical condition. Payments may be subject to a waiting period. In the event of a covered disability, the insured borrower is covered only for a specified period of time.
Synonyms
mortgage payment coverage, disability coverage, loan coverage, injury coverage for home loans
Related Terms and Acronyms
- Declining Life Insurance — Definition,
- Life insurance with a decreasing death benefit, often used to insure mortgage debt.
- Default — Definition,
- When a borrower fails to fulfill the obligations of a loan or lease.
- Handicap Accessibility — Definition,
- A measure of how accessible a location, product or service is for people with special needs or disabilities.
- High-ratio Mortgage — Definition, Important,
- A mortgage in which a borrower places a down payment of less than 20% of the purchase price.
- Loan-to-Value (LTV) — Acronym, Very Important,
- The ratio of the principal amount of the loan to the lesser of the purchase price of the property or the property's appraised value. This can be expressed as an 80% loan, or 80% LTV.
➥ A widely used term in the mortgage brokerage and lending industry, especially by mortgage underwriters. - Mortgage Insurance — Definition, Very Important,
- Insurance that protects a lender if a homeowner fails to pay off his or her mortgage.
- A policy covering a mortgagor from which the benefits are intended (a) to pay off the balance due on a mortgage upon the death of the insured, or (b) to meet the payments on a mortgage as they fall due in the case of his death or disability.
➥ CanEquity offers mortgage insurance. - Mortgage Life Insurance — Definition, Very Important,
- Insurance that covers the costs of paying off a mortgage if the insured dies or becomes disabled.
