Is Job Loss Insurance Worth It?

Earlier in the week, I wrote about how job loss insurance is being used as an incentive to get buyers into homes. It sounds like a great idea. With financial uncertainty and many people finding themselves unemployed, many people would welcome such assurance.

At least one real estate expert does not feel that mortgage payment insurance is really all that is cracked up to be. This expert pointed out that plans, such as the ones that offer to pay your mortgage for six months if you lose your job, won't do much for you in the long run. He was of the opinion that since some people will spend more than six months on the hunt for a new job, this type of insurance will not save them. He recommended doing all you can to negotiate the best possible price, rather than opting for job loss insurance.

Only you know your financial situation and if you have a good amount of savings, six months or so of mortgage payments may be just the life raft you need as you look for a new job should you become unemployed.

As with any possible home buying incentive, you have to weigh the pros and cons and do your research to see if it will be of real benefit.