Income Insurance Mortgage

The risk of becoming disabled is far greater than most of us realize. In the blink of an eye you or your spouse could be unable to work. The circumstances are beyond your control and once the money stops coming in your house payments can get behind easily. Without a backup plan, you risk losing your house and everything you have worked so hard to maintain. In addition, you would risk your credit rating, making it difficult to get a new home, buy a car or get any kind of extension on your line of credit.

You can, however, get mortgage disability insurance that will cover your house payments for up to three years.

Two-income Families

If you are used to living off of a double income, it would be in your best interest to insure both wage earners on your insurance policy. This will help you to maintain your lifestyle should something happen to one or both of you.

Ways to Protect Yourself

There are some things you can do early on, in addition to mortgage protection insurance, which will help alleviate the pain of losing your income. Though it sounds very basic, keeping your house payment as low as it can be to start with will keep it more manageable when you have lost your income. Taking on a bigger mortgage runs you into a bigger risk of not being able to keep up and possibly have to foreclose your home. Some mortgage companies offer a holiday period in which you do not have to pay for a period of months. This could be based on extra payments made in advance or payments being tacked onto the end of your mortgage. You should also try to have some money saved for this type of financial emergency.