Buying a home usually means that you have a monthly mortgage payment. If you become injured or sick, and find yourself unable to work, you will want to make sure that you can still pay your mortgage. Having an adequate disability insurance policy may enable you to keep up with your mortgage payments.

What's the connection between disability insurance and buying a home?

So, you (and the bank) have bought a new home for you and your family. Good for you! Like most of us, you probably go to work every day to make that monthly mortgage payment. And, like most of us, without those wages, no mortgage payment could be made. As long as things are okay, you have no problem. But, what if one day you get in a serious car crash, or find out that you have a serious illness?

All of a sudden, you're on the sidelines for awhile, unable to work, unable to earn the wages that pay the mortgage. What happens then?

Well, your spouse may have to go to work (if he or she isn't working already), and the kids may have to go to childcare (another cash burden). Or, you may have to dip into those precious savings that you've been able to put away. Or, even worse, you may lose your house.Disability insurance is a way to protect you if such catastrophic circumstances were to strike.

Disability insurance pays you an income while you are unable to work. With that income being received to replace your lost wages, you are able to continue making those monthly mortgage payments, and your home remains safe.

How much disability insurance should you have?

The amount of disability insurance you need depends upon your circumstances, such as, what is your income, how much is your mortgage, and do you need coverage for any other expenses. These, and other factors, must be considered and estimated to calculate the amount of disability insurance you should have.