Mortgage protection unemployment insurance is important to many people. Losing your job and being unable to make mortgage payments is terrifying for families. The thought of losing your home and having to relocate your family due to job loss is disturbing.
Most families these days require two incomes to support the family and related expenses. The mortgage payment is typically a family’s largest monthly expense. Paying your mortgage payment and preventing the bank from foreclosing on your home when you become unemployed is a high priority for all families.
Mortgage protection unemployment insurance is something many homeowners would like to have in place to protect their home. Many mortgage protection letters that homeowners receive mention something about unemployment insurance.
Most homeowners when reading these letters are attracted to the concept of an insurance company paying their mortgage payments should they become unemployed.
If you purchase a mortgage protection policy thinking that the insurance company will pay your mortgage payments while you’re unemployed, you’ll be shocked to find that no mortgage protection policy will make your mortgage payment for you if you become unemployed!
Is mortgage payment unemployment insurance available?
No, there are not any insurance plans available that will make your mortgage payments for you should you become unemployed (NOT your actual monthly mortgage payment).
We have access to insurance companies that will waive your mortgage protection LIFE INSURANCE PREMIUM for up to six months if you become unemployed. This allows you to keep your mortgage protection insurance coverage in force, but have one less monthly expense to pay until you find a new job.
The mortgage protection letter I got in the mail said it would pay my mortgage payment if I became unemployment?
You must read these mortgage protection letter offers CAREFULLY. What your mortgage protection letter said is “Unemployment – Covers premium payments while unemployed.”
If you read the letter carefully that arrived in your mailbox it says that the mortgage protection INSURANCE PREMIUMS will be paid for six months should you become unemployed (NOT your actual monthly mortgage payment). Your monthly mortgage payment WILL NOT BE PAID should you become unemployed!
If you have a $150,000 mortgage protection policy, a $1,751.32 mortgage payment, and a monthly mortgage protection premium of $39.12, your $39.12 monthly premium will be waived for six months, should you become unemployed.
Waiving a $39.12 monthly premium and waving your $1,751.32 monthly mortgage payments are two entirely different things. While you may want a mortgage protection policy to make your mortgage payment for you if you become unemployed, it doesn’t work that way (at this time).
Why is the “fine print” about mortgage unemployment insurance important?
We received a call from someone who had purchased a mortgage protection policy from another agent in another state. They couldn’t remember who sold them their policy, so they called us for expert advice.
This homeowner had purchased a mortgage protection policy that had an unemployment provision included in the policy. The agent that sold this homeowner their policy told them the insurance policy would pay their mortgage payment should they become unemployed.
This homeowner had just received news that they were being laid off in the coming months. The homeowner called us to see if we could help verify their policy benefits with the insurance company where the mortgage protection policy was issued.
As it turns out, we are contracted with the same insurance company that the other agent sold them. We know the benefits of this policy inside and out. We instantly recognized that this homeowner had been told things about their policy that were not true.
The homeowner had purchased the policy 21 months prior. Their policy clearly stated that the unemployment provision would start at month 24. So at this time, the homeowner was not even eligible for any unemployment premium benefits.
The homeowner also had been told by their sales person that the unemployment provision would make their mortgage payments for them. This was not true!
The mortgage protection policy they purchased would only make the mortgage protection plan premium payments for them for 6 months, not actually pay their mortgage payments for 6 months.
There are currently no mortgage protection plans available that will pay your mortgage payments for you should you become unemployed.
Here’s an example of one companies unemployment writer included in a mortgage protection policy:
Unemployment Rider For Mortgage Protection:
- Waives 6 months worth of mortgage protection insurance premium in the event you become
unemployed for at least 4 weeks
- Automatically included, at no additional cost, for issue ages 18-60
- You must exercise this rider within 90 days of qualification
- You must be receiving state or federal unemployment benefits to qualify
- A waiting period of 24 months from the date of issue applies
- One time election
- Terminates at age 65 and at the end of the term period
Why don’t insurance companies offer unemployment insurance for mortgage protection?
There are many different ways that homeowners become unemployed. The economy may change, businesses may downsize, or companies may be bought or sold.
Additionally, people may be incompetent at their job or unsafe at their job. Employees may be involved in theft, fraud, and other criminal acts that will result in homeowners becoming unemployed.
Because there are so many different ways for people to become unemployed (both without fault and at fault from the homeowner), the insurance companies don’t offer a mortgage protection payment benefit on any of their mortgage protection plans.
Good, hard-working people lose their jobs every day and deserve financial protection for their expenses. People with bad work habits and a lousy work ethic lose their jobs every day, and they would love to have somebody else (like an insurance company) make their mortgage payments for them.
Insurance companies want to offer unemployment mortgage protection, but just haven’t figured out a way to differentiate between the good workers who work hard, from the bad workers would love to scam the insurance companies to pay the mortgage payments when unemployed.
What are my unemployment options with mortgage protection?
With some insurance companies, we can get your mortgage protection insurance premium waived for up to six months.
What are your other suggestions for mortgage protection and unemployment?
We recommend that you be conservative in your mortgage and household expenses. Don’t max out your budget with a large mortgage payment. By keeping your mortgage payments low, you’ll be able to put money in an emergency fund in the bank to cover your mortgage payments if you become unemployed.
Having a solid financial plan, living within a budget, and having an emergency savings account with six months of income will make short periods of unemployment less stressful and challenging.
What if my agent told me I have a policy that would pay my mortgage payments if I become unemployed?
The first thing you should do is read your mortgage protection contract to see exactly what it says.
Since you signed a legally binding contract with an insurance company for your mortgage protection policy, only what is actually written in your mortgage protection policy is valid.
It doesn’t matter what your mortgage protection agent told you. What matters is what is written in your policy.
Some mortgage protection life insurance agents are so eager to earn a commission that they will mislead homeowners into believing their policy contains a provision or protection that is not specified in the policy.
Be sure and read our deceptive mortgage protection sales tricks article for more information about this.
What should I do if I was sold a policy and was misled by a mortgage protection agent?
The first thing you should do is review the “fine print” in your mortgage protection policy. We understand that reading your insurance policy is probably the last thing you want to do as it is often boring and confusing.
The good news is that we enjoy reviewing mortgage protection and life insurance policies for homeowners! In fact, we already know most of the details for most companies insurance products.
We can generally tell you on the spot what benefits are included in your current policy. If not, will be happy to review your current policy at no cost.
What should I do if I have a mortgage protection policy with unemployment protection?
If you purchased your mortgage protection policy knowing that the unemployment provision only covered your premium payment should you become unemployed, it’s may be wise to keep the current policy.
If you want better pricing, we may be able to save you money by finding you a company that has better rates, with the same benefits.
If you purchased a policy and your agent misled you, and you now know that your policy will not make your mortgage payments for you should you become unemployed, we can help you.
Most people we talk with who have been sold a policy by an unethical agent want to cancel that policy and get another policy. Unethical agents often sell policies that cost more than other plans that are available, so we can generally save you a money each month on your premium.
Most mortgage protection agents are simply life insurance agents who also sell mortgage protection policies. At Buy Mortgage Protection, we have dedicated mortgage protection specialists.
You don’t need to deal with brand-new or unexperienced mortgage protection agents when searching out the best mortgage protection for your home.
My budget is already tight. Why would I want another monthly bill for mortgage protection?
If you are struggling financially now, imagine how tough it will be if a loved one dies unexpectedly. You will have no financial safety net and a household income earner dies, you will lose your home.
For a reasonable monthly premium, you can get your entire home paid off when an income earner dies unexpectedly.
Most families can easily come up with money for mortgage protection on a monthly basis by limiting unnecessary purchases. For one or two dollars a day, many families can protect their mortgage, their families, and their children’s future.
Mortgage protection insurance is affordable. It provides a critical financial safety net for your spouse, partner, or loved ones when you die. Without mortgage protection, most homes are lost within 1-2 years after the death of a loved one.
Call us today at (888) 460-0903 or fill out our free quote form to get your home protected today!