Definition
Mortgage disability insurance pays monthly mortgage payments if the borrower becomes disabled (unable to work) due to illness or accident.
Two types of protection: 1. **Bank mortgage disability insurance (group)**: offered at mortgage signing by the bank. Convenient but expensive and restrictive. Conditions may change at renewal. Exclusions are often numerous. 2. **Individual insurance (via financial security advisor)**: more flexibility on disability definitions, waiting periods, and amounts. Premium is guaranteed long-term. Can cover more than the mortgage payment.
Difference from mortgage life insurance: - Life insurance pays the entire mortgage balance at death - Disability insurance covers payments during the disability period
Advice: insurance offered by banks at mortgage signing are mass-market products often less competitive than individual products taken out with an insurance advisor.