Job Loss Mortgage Insurance: Top 3 Facts to Learn

    CHICAGO, IL, April 29, 2009 /24-7PressRelease/ -- If there was ever an equation for an anxiety attack, it would be today's sour economy mixed with the current job market. For homeowners, nothing gets the sweat on their foreheads to build like being uncertain about whether they'll still be employed next month. But one thing they can be sure about: the mortgage payment will still be due, job or not.

However, there may be some salvation for homeowners who fear they may not be able to make the next mortgage payment: Job Loss Mortgage Insurance.

Job-loss mortgage insurance guarantees your home is protected from an unexpected foreclosure (usually due to loss of income from job loss). With job-loss mortgage insurance, you and your family will have a home--one less thing to worry about while you search for employment.

How big of a threat is foreclosure to homeowners today? The staggering numbers speak for themselves.

Today, the unemployment numbers in America are topping off at 12.5 million people, the highest number in over 25 years, according to the Labor Department. And the numbers are steadily climbing.

Furthermore, more than 5 million Americans with a mortgage were at least one month late on their mortgage payment or in foreclosure at the end of 2008, according to the Mortgage Bankers Association.

Who can afford to take the risk of losing their job, and then possibly losing their home? Taking big risks--like possibly losing one's home--is unnecessary when there are resources that can help homeowners through the tough times.

In such cases, job-loss insurance coverage added to your homeowners insurance policy may be the ideal course of action. However, there are two sides to every story, so it is in your best interest to learn the pros and cons of job-loss insurance before purchasing it.

Here are three must-know facts of job-loss mortgage coverage.

1. Not everyone qualifies for job-loss mortgage insurance. So make sure you meet the requirements. The following people are not eligible for job-loss mortgage insurance:
• Retired military personnel
• Self-employed
• Independent contractors

2. Job-loss mortgage coverage isn't the same for everyone. Monthly benefits of job-loss mortgage coverage are going to be different depending on the insurance company you're with. To find the best job-loss mortgage coverage and insurance company for you, do the following:
• Compare quotes from several different insurance companies. Prices will vary, and so will the amount of coverage and benefits.
• Take stock of your mortgage payment. Calculate how much of your income is left over monthly after you've made your mortgage payment.
• Calculate the amount of debt/bills you have. Also factor in the cost of other necessities. Try to find a job-loss mortgage rider on your homeowners insurance policy that will provide the funds you'll need to stay afloat should you lose your job.

3. You might not get paid right away. If you find yourself among the unemployed and you invested in job-loss mortgage insurance, keep the "grace period" in mind when expecting a check from your insurance company. You homeowners insurance agency may not pay you right after you lose your job. Generally, job-loss mortgage coverage benefits do not start until approximately 60 days after you lose your job. After the initial grace period, you should receive benefits for up to one year. However, different policies and insurance companies vary, so clarify the details of your coverage benefits with your homeowners insurance agent.

Today's economic climate is not one in which they should be taking risks. Investing in job-loss insurance could perhaps have some short-term financial drawbacks but could benefit you and your family in the long run by giving you a "bailout" if or when you need it.

InsuranceAgents.com provides consumers with access to information including insurance quotes, articles, and comparisons.

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