| When most consumers think of insurance for | | | | most families current on their bills, mortgage, and |
| their home, they are thinking of 3 traditional types | | | | other obligations, like putting groceries on the |
| of protection. Homeowners insurance protects the | | | | table. |
| actual building, property, and contents against loss | | | | Some workers plan to save so they can cover |
| or damage, and may provide some liability | | | | themselves during a period of job loss. And of |
| protection. A product called private mortgage | | | | course, we all should have a few months worth |
| insurance, or PMI, is usually sold with a home | | | | of income in the bank so temporary job losses |
| mortgage, and it is used to make mortgage | | | | do not ruin us financially. However, months of |
| payments to the lender, and so, it protects the | | | | savings can get wiped out with one car repair or |
| lender, and may be required by the loan company. | | | | medical bill, and depleted savings do not always |
| Another product, called mortgage insurance, or | | | | get replaced as quickly as they should. On the |
| mortgage life insurance, is actually a term life | | | | other hand, having a bill to pay ever month, for |
| policy which is purchased to pay a home off if | | | | the security of knowing that cash will come in |
| the borrower should pass away. | | | | during a the time between jobs, works out better |
| However, many consumers want to protect their | | | | for many working people. |
| ability to pay their home mortgage off in case | | | | A supplemental or private layoff protection plan |
| they should lose their job. So when they are | | | | can provide peace of mind for a few dollars a |
| looking for mortgage insurance or home insurance | | | | month. It pays cash to the plan owner, so that |
| they are not looking for the traditional products at | | | | person an use the money to pay the most |
| all! And some people are wised to be concerned, | | | | urgent bills and obligations. The plan benefits the |
| and to want to protect their homes. After all, US | | | | consumer, and not just the loan company. Many |
| statistics show us that over one third of home | | | | of the older credit protection plans are designed |
| foreclosures are caused by a loss of income. | | | | to only protect the lender by making payments |
| Furthermore, the numbers also tell us another | | | | on a loan or bill. |
| thing. Most Americans will be unemployed a couple | | | | Some plans pay benefits of up to $2,000 a |
| of times in their working lives. Since the loss of | | | | month, so this benefit can actually cover a |
| income can cause huge financial products, and | | | | mortgage, keep the electricity paid, and buy food |
| since an unemployment period will happen to most | | | | for many people. If a person has a private layoff |
| of us, it is prudent to protect ourselves. | | | | protection plan, they can choose to defer bills that |
| Many employees do qualify for state | | | | are less urgent, and to pay those bills that need |
| unemployment benefits, but the average amount | | | | to be current every month. It is a consumer |
| of US state unemployment benefits is less than | | | | driven credit protection plan that pays cash to the |
| $400 a week. This is not enough money to keep | | | | plan member. |