Most people labor long and hard to pay for a home of their own, and want to protect it.

You may have fire and casualty insurance, but how about when something happens to you, and you may lose the home? Insurance policies exist that protect the ownership of the home in case you cannot pay your mortgage due to death or disability. There are two kinds of mortgage insurance, life insurance and a disability policy.

When the primary salary earner's salary is gone, either because of death or a severe disability that stops him from working, usually the surviving spouse could not keep the home.

If you are like most people, you don't want to consider the fact of your death. But a good family man will want to protect his family in the case he is not there to pay the mortgage.

A typical mortgage life insurance policy will give a benefit that can pay off the balance of the mortgage on your home. One type of mortgage life insurance policy is a decreasing term policy, whereby the payout goes down over time, just as a mortgage balance decreases over time.

A second kind of mortgage insurance that is increasingly important is disability that will cover the event that the main wage earner cannot work and earn a salary. The monthly mortgage payments will continue to be made during the time the insured is disabled. Despite the fact that some people may have disability insurance from their job or the state, the benefit is usually not enough to cover all expenses, and additional insurance such as mortgage disability insurance is necessary.

As a matter of fact, mortgage disability insurance may be a more valuable choice than mortgage life insurance because the chances of a wage earner becoming disabled are greater than of his death.

There is the added issue that many households could not even afford a home if both partners were not employed, and they should buy a joint policy. If both of the parties are disabled, perhaps by an accident they were both involved in, the entire mortgage payment would be paid.

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