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