Unemployment Mortgage Protection Insurance

As you go through your work week, you are generally more concerned with the work that is in front of you rather than the possibility of becoming unemployed. If you have a good, secure job, then maybe you shouldn’t trouble yourself with mortgage unemployment insurance. If you are like most people, however, you should take a look at the 2008 and 2009 unemployment statistics below and then take a look at what mortgage unemployment protection can offer you.

2008 Unemployment Statistics

The unemployment statistics for 2008 are not pretty. In the first 11 months of 2008, the unemployment rate in the United States rose to 6.7 percent in November. This is the highest unemployment rate in the U.S. since September of 1993. The unemployment rate has risen in each month of the 2008.

The number of jobs lost in the first 11 months of 2008 topped 1.9 million and the numbers are looking worse by the month. November alone saw 533,000 jobs go away and of the 1.9 million jobs lost during the first 11 months of the year, 44.6 percent were lost in October and November and two-thirds of the job losses occurred in the three month span of September through November.

2009 Projected Unemployment Statistics

The current recession does not appear to have a clear end in sight. Most projections have the situation getting worse before it gets better. The 2009 projected unemployment statistics show an increase in lost jobs and unemployment rate.

The most dire of predictions have the unemployment rate in the United States hitting 10 percent by the end of 2009. However, most believe it will top out at around 8.5 percent, which means more job losses are coming. An unemployment rate of 8.5 percent would mean another two million jobs lost in 2009.

These are nationwide unemployment statistics and those of your state and local area will fluctuate greatly. Some states and areas are on better financial footing than others, and you should take the time to evaluate the 2008 and 2009 unemployment statistics in your area.

What Does This Mean For You

The economic trend and increasing unemployment does mean a great deal to almost anyone who is currently employed. Jobs that were secure in the beginning of 2008 are not so secure anymore. It is more important than ever to think about how to protect yourself and your family in case you do become unemployed for a period of time.

If you do become unemployed, you have to think about protection. Here are a few ways to help you and your family make it through a period of unemployment.

• Borrow from family and friends
• Consider a two-income family
• Consider mortgage unemployment protection insurance
• Sell off investments
• Try to put more savings away for a rainy day

Some of these options may not be the type of thing you would like to do. It is hard to borrow money from family and friends even if they have the money to lend to you. Selling off investments in a hurry to pay the bills generally means you are selling the investments for much less than they are actually worth.

A two-income family is always beneficial financially, but if only one of you is working it can still be difficult to pay all the bills, especially your mortgage. You should always attempt to put money into savings, no matter the economic climate, but if you are unemployed a savings account can be depleted quickly. Just a quick statistic; if you put away 10 percent of your income annually, unemployment could wipe out five to ten years of savings in only one year.

Benefits of Mortgage Unemployment Protection Insurance

One of the ways to protect you and your family in the case of unemployment is mortgage unemployment protection insurance. This is a type of insurance that will give you a cash benefit to pay your mortgage while you are unemployed as long as you become unemployed through no fault of your own.

Here are some of the benefits of having mortgage unemployment protection insurance.

• 30 days of unemployment will kick start the cash benefit
• Cash benefit paid to you based upon the amount of your mortgage
• Cash can be used to pay any type of expense
• Pays cash benefit for a specified period of time or until you find other employment

Depending upon the mortgage unemployment protection insurance provider, there will be many differences in the terms and conditions of the policy. Though they will all offer some type of protection in case of unemployment and can be a savior as you pound the pavement looking for future employment.

While the 2008 and 2009 unemployment statistics are troubling and deserve attention, you should not let them scare you. By paying attention to the economic conditions around you and taking steps to prepare for the worse, you can weather the current economic storm and possibly even come out stronger in the end.