Supplemental Mortgage Unemployment Insurance
Supplemental Mortgage Unemployment Insurance
Most people are aware that the government will pay unemployment benefits to US citizens who lose their jobs. The amount of the benefit is directly tied to several factors including:
- State of Residence
- Hourly pay rate of your most recent job
- Number of dependent children
There are multiple calculators available on the internet that will assist you in determining the exact amount available to you should you lose your job.
Government Benefits May Fall Short
While these benefits can be vital to maintaining your lifestyle, they are in most cases well short of the full compensation lost. This gap in salary can cause financial strain and it is prudent to research your exact benefit and determine if that would be adequate to cover your expenses in the event of job loss.
Most financial advisors will recommend having 3 to 6 months of living expenses set aside in case of job loss, illness, or injury. This is a wise goal but for many people, this would take years to accumulate. In the interim, it may be advisable to research a supplemental insurance policy aimed at closing the gap between the government’s benefits and the real expenses you will face each month.
By adding a policy like this to your portfolio, you would be buffering your family from the financial hit coming from a job loss. The coverage can last for up to 6 months which will allow time to locate a new job and get back on your feet.