| Having enough life insurance to not only | | | | strain. But when Eric was tragically |
| cover the loss of income, but also your | | | | killed in car crash, Jane was left to |
| family's other debts (such as house, | | | | support her family without an income. |
| car, credit cards, etc.) is a wise move. | | | | Fortunately Eric had enough life cover |
| Even though it may feel like a struggle | | | | to offset his financial contribution to |
| at the time if you have to scrape the | | | | the running of the household. He also |
| funds together to cover the premium. | | | | had mortgage insurance. Jane received a |
| In the event the unthinkable happen, the | | | | check from the life insurance company |
| house (and perhaps other debts) would be | | | | large enough to invest and support her |
| paid for and your family would have one | | | | and the kids until they were grown, and |
| less burden to worry about. Or, if you | | | | another check she used to pay off the |
| have mortgage insurance that is | | | | mortgage on the home, which took away |
| triggered by your disability or being | | | | the largest monthly expenditure. Jane |
| unable to work (or disability | | | | no longer had to worry about making the |
| insurance), then your family is covered | | | | house payment each month, or dipping |
| if something should happen. | | | | into the life insurance money to make |
| When you take out the loan on your | | | | the house payment. The mortgage |
| house, the company financing your home | | | | insurance took care of that for them. |
| will often insist that you include | | | | Jane's case is, unfortunately, all too |
| mortgage insurance as part of the | | | | common. Every year in America thousands |
| arrangement. While this may seem like | | | | of people depend on mortgage insurance |
| an unnecessary addition to your already | | | | when an unexpected tragedy occurs. |
| full expenditure list, it does make | | | | Mortgage insurance (or additional life |
| financial sense for the mortgage company | | | | insurance to cover the mortgage) can |
| but also for you. However, just because | | | | seem like a burden to those who opt for |
| you are buying mortgage insurance from | | | | it, until they think about the amount of |
| one company doesn't mean that you need | | | | protection it provides. Mortgage |
| use that same company for your other | | | | insurance is one of those things that |
| insurance needs. | | | | you are very glad to have when you |
| Take, for example, the case of Jane | | | | finally need it. |
| Dodd. Jane and her husband Eric worked | | | | In such a difficult time, having enough |
| hard to raise a down payment to buy a | | | | insurance to cover the remainder of the |
| home. The Joneses had three children, | | | | mortgage, for many families, has made |
| and they both decided that Jane should | | | | all of the difference in security, in |
| stay home with the kids. Eric had a good | | | | having a roof over their heads, and in |
| job and a solid paycheck so it wasn't a | | | | knowing that their futures are secure. |