Unemployment Mortgage Protection Insurance Guide

With daily news reports focusing on the declining economy and disappearing jobs, you may be like many who are beginning to wonder what you would do if you were suddenly unemployed. How would you pay your mortgage and other expenses? Is there a way to protect yourself and your family? One answer to both of these questions could be unemployment mortgage protection insurance.

What is Unemployment Mortgage Protection Insurance?

This is a relatively new line of insurance that protects your mortgage in case you become unemployed for an extended period of time.

You will pay a relatively small monthly premium and if you become unemployed for more than 30 days and the unemployment is due to no fault of your own, you will receive a cash benefit. The cash benefit will be paid directly to you on a monthly basis in the amount that was agreed upon in your contract. You can then use the funds to pay whatever bills you wish.

Who Needs This Type of Insurance Coverage?

Virtually anyone who has a mortgage could use the protection of this type of insurance. Very few people can manage to pay their mortgage and other expenses if they are unemployed for an extended period of time. That is how savings accounts are emptied and bankruptcies and foreclosures happen occur.

If you don't think you could financially withstand unemployment for more than 30 to 60 days, you should seriously consider investigating this type of coverage.

How Affordable is This Coverage?

Luckily, this form of insurance is one of the more affordable lines of insurance. An average monthly premium of $70 to $75 will protect a mortgage payment of about $1500. This means your yearly premium for unemployment insurance will be just over half of one month's mortgage payment.

Where to Shop for Coverage Options?

It is getting easier and easier to find unemployment mortgage protection insurance. Your mortgage lender is a likely source, but you can also find unemployment insurance online. An online search will allow you to gather quotes conveniently and quickly. This will allow you to compare unemployment protection insurance providers and get the best deal for you.

Are There Restrictions on the Coverage?

There are some restrictions put upon the payout of an unemployment protection insurance claim. Though unemployment mortgage protection insurance companies will have differing restrictions, here are a few of the most common.

• Job loss must occur through no fault of your own
• Must be full-time, year-round employee
• Must be unemployed for at least 30 days
• Must have unemployment insurance policy for at least 6 months
• No self-employed workers

Make sure to read all the terms and conditions of an insurance policy before signing.

The unemployment statistics are staggering as nearly one million jobs were lost in the months of October and November of 2008. Projections for 2009 expect this trend to continue with over two million jobs to be lost in 2009. Now is the time to consider protection for your home and family with unemployment mortgage protection insurance. It may not be the right choice for everyone, but it may be the right choice for you.