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