Do you buy the mortgage unemployment insurance as a smart move?

Unemployment mortgage insurance is a financial product that is becoming increasingly common. In fact, many mortgages have been developed as an additional value and the premium is a factor in the owner's monthly premium payment. If you built on your mortgage or have a separate policy, this is a very smart financial move is very important to understand how both types of jobs in the insurance, because they are actually very different. The difference is built into your loan insurance (if less than 20% of the equity in your home) is designed to protect the lender in case you default on the insurance, unemployment mortgage loans purchased by a third are usually only used to protect the policy owner if you become unemployed.

Mortgage Unemployment Insurance and Economics

In times of economic instability, you never know when your company or your spouse worked to close, downsize or institute layoffs for other reasons. That makes you and your finances are very weak. Most people are not financially secure enough to continue paying their mortgage for longer if they become unemployed. Therefore, unemployment mortgage insurance is a smart move for anyone who needs to work to pay their mortgage.

Avoid default on your loan

When you buy a house, you have all good intentions to pay the mortgage and home stay until you decide to move. Unfortunately, circumstances beyond our control, such as voluntary unemployment, sometimes you can take the edge of financial disaster.

When faced with difficult decisions such as how to feed your family or pay the mortgage, feed the family usually wins. This in turn makes you in a situation of non-payment of your mortgage. When buying insurance protection job loss, the situation is not as alarming. If you lose your job and not their fault, their unemployment insurance plan, will kick in and keep your mortgage payments so you can concentrate on other things.

Know Facts

Although mortgage insurance unemployment insurance that is useful to carry, have limitations and should be aware of them before deciding whether to invest in the policy. The plan, which most have a waiting period before becoming eligible for benefits. If you do not have the financial means to pay your mortgage at this point might want to wait until there is enough money in savings before buying this extra protection.

Note that if you work alone, work part time for family members, press and hold the position this season, has more than 10% shares of the company you work for or receive compensation can not collect unemployment insurance protection. You also qualify if you lose your job voluntarily. There are some limitations in their ability to collect unemployment mortgage insurance. Make sure that none of them apply to you before they charge premium money.