You can protect your valuable mortgage usually by using Mortgage Insurance as well as Mortgage Life and Disability Insurance. Mortgage Life and Disability Insurance is such a standard practice these days that the majority of mortgage calculators will factor an amount in for Mortgage Life and Disability Insurance when calculating the cost of your mortgage. An insurance policy will guarantee the repayment of your mortgage in the event that you are unable to work due to death and in some policies disability. This does not come into effect until one of these conditions are met which is why many people take out additional personal insurance to cover their loss of income due to sickness, disability or loss of income.
Mortgage Insurance is a Premium amount that a borrower has to pay if you have a deposit less than a certain amount set by the bank, usually around 20%. If you have a deposit less than this amount the mortgage insurance will be required by the mortgage lender to protect them in the event that you default on your mortgage for any reason and it is paid to a private insurance company which will then reimburse any loss of funds suffered by the lender. This insurance does not mean that if you were to have a sudden loss of income, or were to die, that the person taking out the mortgage would be protected from loss, in this case you would default on your mortgage, after missing a certain pre arranged number of payments, and lose all money you have paid into the mortgage as well as your house. This is why it is always recommended that you take out Mortgage Life and Disability Insurance to cover yourself, and your dependents, from being made homeless and bankrupt due to your disability or death.