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sinister.genius@gmail.com writes:
> Hi I just got a house and a 30 year mortgage. I have been inundated by
> advertisements in the mail from insurance companies looking to sell me
> a policy that will pay my mortgage for 6 months if I get fired. This
> actually sounds like a good idea to me but I have never heard of these
> companies and they sound shady, like they will find some reason no to
> pay me if I did get fired. Is this kind of insurance legit? Are there
> legit companies selling it? Thanks.
Yeah they're legit by and large. insurance companies will sell
insurance on damn near anything they can hedge a bet on. Mortgage
protection insurance is something I am offered every damn month by my
mortgage company. For death, I think it's silly -- you have life
insurance for that, and if you do not, whoever owns the house after
you're gone can do the normal thing and sell it to get out from under
the mortgage. The beneficiary of mortgage insurance is the mortgage
company further reducing their own risk.
As for unemployment inusrance for your mortgage... If you are in a
high risk industry and in danger of being laid off and would be facing
a LONG job search, and th ehousing market is crap, then maybe it'd be
some risk mitigation that'd be worth it to you. For most folks, the
old standby of having 6 months of salary in the bank is a more
effective use of the $ for the insurance.
Never forget that if it weren't profitable for the insurance company,
it wouldn't be offered, so it's genreally wise to only insure against
things that'd financially ruin you or cause a huge huge impact to your
family.
On a related note, anyone familiar with foreclosure? How much slack
do mortgage companies generally give folks to overcome such problems
and get behind on their payments? i.e. in a real scenario where
you cannot make your payments, do mortgage companies rush into
foreclosure, or will they give you several months to get back into a
job situation etc? I have fortunately never known anyone that's been
through that.
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Todd H.
http://www.toddh.net/
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Re: Insurance to pay mortgage if you get laid off?
