Does a disability insurance repay debts?
Disability Insurance for a loan: To cover debts (not salary)
Posted on February 15, 2019 by Stéphanie Corbeil
Disability insurance for a loan, whether it's a mortgage, a personal loan, a credit card, a rental lease, a simple loan or a car rental, is used to cover your debts of all kinds (not salary).
Because of its cost and simplicity, this insurance product is very interesting. Simply put, if you are sick or have an accident that prevents you from going about your regular activities (your work), the monthly payments of all your debts (the amount you choose) will be paid to you.
Insurance-disability-loan
In addition, it does not affect the salary insurance you have, whether it is personal or comes from your group insurance at work.
You therefore withdraw your salary according to the terms of your contract and your debts will also be covered on a monthly basis. Debt insurance replaces mortgage insurance, loan insurance on a car rental, insurance on a personal loan, insurance on a credit card, etc.
You choose the amount monthly, for example:
- Mortgage repayment at $950/month;
- Repayment of the car loan at $500/month;
- Repayment of the line of credit at $250/month;
- Credit card refund at $100/month;
- Total: $1800/month.
In the event of an accident or illness, note that you can protect all of this amount monthly or only a portion.