When and When Not to Get Mortgage Payment Protection Insurance

To be eligible for mortgage payment protection insurance, most companies require for you to be employed for at least six months with one company. Those who are typically not eligible for mortgage unemployment insurance are those who are self-employed, work part time, or are contract, seasonal or temporary employees. To be eligible for filing a claim, you should be involuntarily unemployed. This means that you should have been forced to stop working for reasons that are not your fault such as redundancy, cost-cutting, layoffs, disabilities, illnesses and such.

You may want to consider getting mortgage payment protection insurance if the possible loss of your job can put your family at risk and lead to the loss of your home and even to bankruptcy. There are many factors to consider when choosing the right policy. You will have to factor in the likelihood of losing your job. In unpredictable economic situations such as what we are experiencing now, massive job layoffs are not uncommon and many find themselves having a stable financial income one day and being unemployed the next. You will also have to factor in your savings and your credit rating or your ability to borrow money. If you think you have enough money set aside in case of emergencies such as unemployment, which will pay for your mortgage payments on top of your utility bills, living expense, credit card bills and other miscellaneous expenses for a substantial time period (say six to twelve months)-just enough time for you to find new work-then you might not have any need for mortgage payment protection insurance. On the other hand, if you are having a hard time meeting your monthly expenses as it is and you just have enough for paying credit card bills, that if you become unemployed tomorrow, all hell will break lose, then the security of mortgage payment insurance can bring you peace of mind. With the insurance paying for your biggest monthly expense, which is your mortgage, you can concentrate on paying your utilities and living expenses for the meantime. This is a great load off your back especially in times of an emergency such as unemployment or poor health.

It used to be that the state offered assistance with mortgage payments in the event of unemployment but nowadays, the assistance can take up to nine months of being unemployed and even then, the state will only pay for the interest and not the principal. More and more people are finding security and protection in mortgage payment insurance. However, not all mortgage insurance policies are created equal. Some will only pay for the interest and principal while others will pay for all mortgage expenses including taxes and insurance. Good quality mortgage payment insurance will cover mortgage payments within one month of unemployment and will last for at least 12 months-ample time for you to recover or gain employment.

Mortgage Payment Protection Insurance can bring you peace of mind if losing your job means losing your home and putting your family at risk.