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News that really hits home!™
DeadlineNews.Com's Editorial Content Is Intellectual Property - Unauthorized Use Is A Federal Crime
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DeadlineNews.Com Special Report: Job-Loss Mortgage Insurance
A growing number of job loss mortgage protection insurance policies help take the fear out of home buying, but the coverage -- sometimes over-hyped as a form of recessionary relief -- is not for everyone.
The not-for-everyone consideration isn't necessarily because of cost, the type of home you buy or the feasibility of such insurance, though they are issues to consider.
Unfortunately, for some homebuyers, the coverage simply isn't available.
When it is available, there are a host of considerations consumers must ponder before buying.
Simply put, for policy holders, job-loss mortgage insurance pays your mortgage when you lose your job -- to a point. Typically paid direct to the lender, policy benefits can cover principal, interest, taxes and insurance, if all items are included in the original mortgage payment.
The coverage can be a good deal if you fear job loss, if you have no other financial back up should your employment end or if you know you later can't refinance or modify your loan out of trouble and don't want to lose your home.
Job-loss mortgage insurance has become a growth industry spawned by the recession. The ideas is to incentivise home buying by adding protection against a shrinking economy to boost home sales. Because housing is a cornerstone of the economy, more sales, hopefully, will help stimulate the economy. Once only the product of traditional insurers, job-loss mortgage protection now comes from a variety of sources.
Continued: 'Shop around for job-loss mortgage insurance'
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 Shop around for job-loss mortgage insuranceWith a variety of coverage, costs, provisions and requirements for job-loss mortgage insurance, here are some issues to consider.• Variations. Premiums, terms, limits, benefits all vary. So shop around. Evaluate your debt and income to determine the policy that's best. Evaluate your mortgage payment to determine if a given policy will provide sufficient benefits.
• Waiting periods. Depending upon the insurer, potential policy holders must be employed full time or for at least 30 hours a week and for a period of time before they can obtain coverage. Once you buy coverage, there is a moratorium of a month or more before the policy kicks in. After the moratorium, the home owner typically must be out of work some time, say 30 days, before the first benefit is paid.
• Limits, Terms. Benefits aren't paid forever and they may not cover the full cost of your mortgage payment. Some policies pay for six months, some pay nine, others for 12 months. CAR limits payment to $1,500 a month, for six months, for example. And once funding is depleted the CAR policy will disappear. Some policies require purchase as part of the acquisition process, other policies allow you to buy the insurance whenever, with waiting period provisions, of course. Other policies require that you finance the cost along with the mortgage, still other policies allow you to buy coverage as a separate cost and payment.
And now, here's the rub Unfortunately, not everyone can buy the coverage. Typically ineligible are those always on the bottom of the totem pole whenever it comes to any kind of special help -- self-employed workers, independent contractors, work-at-home business owners and the like. (Where is Washington on helping hard-working self-employed people?) Others ineligible for some or all policies include:
• The already unemployed.  We've gone offbeat! Quick! Click my head! |
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