I had a family member that bought into this disability insurance. He was under the belief that the house mortgage would be paid off if he died. He had a mortgage and a home equity loan. Neither was covered when he died of cancer, this was considered natural causes. In all, he had 2.5 million of disability insurance from various places, insurance policies, credit cards, etc.
i'm looking into life and disability insurance for my wife and myself. i was talking to an agent and he did mention mortgage disability insurance but it sounds like a rip off. what you think?
I would never purchase disability insurance because my expenses are so small it's very easy to self insure. A coworker of mine, however, is very glad he has disability insurance since he has no savings and needs foot surgery. He'll be out of work for 2-3 months and will have all of his monthly expenses paid for in full.