A mortgage can be savior or slaver, depending on what happens between the time when you first sign the contract and the time when you make your final payment. A lot of things can go wrong in the job, and in this economy, that is something that not many of us can afford anymore.
So if you’re doing good right now and want to give yourself a little extra edge should the unthinkable happen to you, then you may want to slap on some job loss insurance on your mortgage plans.
The policies for job loss insurance vary, but you can expect around $1,500 a month for six months on average. You might not even know you’re signed up for the insurance already, as some insurance packages include job loss insurance in the mix as well.
Do take note, however, that this particular insurance doesn’t give you a free pass to just bum around.
The policies do not cover the whole mortgage payment and usually implement effective dates to deter people who expect to lose their jobs soon. You also need to keep enough cash on hand to pay for the mortgages for a month or two after losing a job, as the payments from job loss insurance providers takes some time to be processed and verified.
All in all, however, it is a good idea for those looking to give themselves a little breathing space should they find themselves unemployed.