With unemployment rates rising, it’s possible the “layoff bug” can bite you. If that happens, how will you make your mortgage payments? Most of us are familiar with mortgage life insurance: declining term insurance that is intended to pay off your mortgage if you die. However, what might not be as well known is insurance that makes your mortgage payments if you lose your job: job-loss or mortgage unemployment insurance. It’s been around for a while from a few companies, but the number of insurers adding this insurance to their offerings is understandably growing.

Basically, mortgage unemployment insurance kicks in if you involuntarily lose your job and remain out of work for a certain period of time, such as 30 days. Then, the policy will make mortgage payments up to a specified amount, for a particular length of time, such as 6 months. There are other caveats that apply per policy, so investigate and compare before buying.

Some say it’s wiser to save 6 months of mortgage payments instead of paying premiums for unemployment mortgage insurance. Whether this type if insurance is right for you may depend on the premium cost, benefits available, and whether you can set aside enough money to cover your mortgage if you do get laid off.