Group Praises Jobs Coverage
According to the Consumer Credit Insurance Association, involuntary unemployment insurance can save homeowners from foreclosure in tough times.
The insurance makes debt payments for insured individuals who lose their jobs through no fault of their own. It can be taken to assure payment of home mortgages or to cover other types of debt, such as credit cards, auto loans or installment debt.
"The experience in North Carolina, and the fact that employment is stalled in the current economy, underscores the value that IUI delivers to homeowners," said William Burfeind, executive vice president of the CCIA.
"Typically, IUI coverage to protect a home mortgage will keep house payments paid up for between six months and a full year depending on the exact terms of the policy, giving homeowners the means to keep the roof over their heads and over their families as they seek new jobs and incomes."
Mortgage unemployment insurance is usually priced as a small fraction of the monthly mortgage payment and is generally available through mortgage lenders. It is always a voluntary choice for consumers and can be taken at the time a mortgage loan is closed or in some cases can be purchased at a later date.
The CCIA is a trade association of more than 140 credit insurers through the U.S.
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