How does unemployment insurance work on a mortgage loan?

When a person acquires a mortgage loan and is left without work activity it will be difficult to comply with the payment of fees. However, there is a possibility when requesting financing and it is to opt for unemployment insurance in a mortgage loan.

The insurance will comply with the payments while the debtor is unemployed.

The insurance will comply with the payments while the debtor is unemployed.

In order to proceed with the payment of debts, the user must prove the requirements set forth by the insurance company. Only then can you comply with payments to the financial institution.

The monthly payment that the insurance will make will include the amortization of the capital, the payment of interest, VAT, rights and other expenses related to credit.

What is overlooked in the small letters of the contract when an unemployment insurance is signed in a mortgage loan, is that insurers exclude people who have lost their jobs due to voluntary acts, either by resignation, withdrawal or termination of labor relationship

Other common clauses are that insurers offer to make payments of 3 to 9 monthly payments, depending on the type of credit, the amount and the term.

The term in which the insurance takes to make the order effective.

The term in which the insurance takes to make the order effective.

It goes from 30 days to 180 days, depending on the type of credit. If the corresponding monthly payments are not met, the insurance will expire.

However, when the monthly payments agreed with the insurer ends and you are still unemployed, the credit will be part of the past due portfolio. As a debtor you will have a negative credit history rating.

Recommendations for contracting unemployment insurance in a mortgage loan

Recommendations for contracting unemployment insurance in a mortgage loan

  • Read the policy contract in detail, if there is any doubt ask insurance broker.
  • Have a reservation in advance of at least 2 monthly credit payments.
  • Make the collection of the requirements in advance to proceed to formalize the contract with the insurer so that the payment of the monthly payments is fulfilled as soon as possible. In the process could happen more than 30, which means expiration of the monthly payment