| We are reading some grim unemployment figures on | | | | mortgage insurance allows for them to still have |
| the news. According to the latest data, unemployment | | | | savings and investments to fall back on if needed. |
| is higher than it has been in years. It doesn't matter if | | | | Using savings and investments during a layoff makes |
| layoffs are at an all time high or your job seems | | | | a person financially vulnerable if it becomes depleted. |
| secure, everyone knows how fast things can change. | | | | There is no guarantee that a layoff will be the only |
| Loss of income occurs from layoffs and other | | | | financial trouble that a person must face. Sadly some |
| circumstances changing. There are both expected and | | | | people who are laid off may also face illness, injury, |
| unexpected changes in finances that should be | | | | and car repairs. If the savings and investments have |
| planned for to assure financial security. | | | | been being used during a layoff, there may be no |
| Sometimes changes in finances can be expected and | | | | funds available for other financial circumstances that |
| planned for. You may be able to save for these things: | | | | may arise. Financial security during a layoff will depend |
| birth of a child, caring for an elderly parent, medical | | | | on the balanced use of both unemployment mortgage |
| procedures, education expenses, and temporary | | | | insurance and savings. |
| unemployment. | | | | Unemployment insurance doesn't mean that you can |
| Sometimes changes in finances are unexpected and | | | | stop saving. Savings should continue. A general rule of |
| there is no time to plan for them. I have known people | | | | thumb is to be able to save the equivalent of 3-6 |
| who reported to work on Friday, and were shocked to | | | | months' expenses in a savings account that is easily |
| learn they did not have a job to come back to on | | | | accessed. Once that has been accomplished, the |
| Monday. Some things that you may not be able to | | | | savings account can be added to for a "cushion" and |
| predict: layoffs, reduced hours, illness, injury, sudden job | | | | then the money that was budgeted to savings can be |
| loss, major auto repairs, or a death. | | | | used to invest. |
| Some people are great with money and have enough | | | | Even with unemployment mortgage insurance, there |
| in savings and investments to cover an extended | | | | may be a need to take a temporary lower paying job |
| period with no income or reduced income. They are | | | | if the unemployment lasts longer than 4-6 months to |
| confident that their resume is strong and they will find a | | | | protect savings and investments from being |
| job quickly. Things don't always go as planned. Savings | | | | completely depleted. During a layoff, volunteering can |
| and investments can be drained by the time a new job | | | | be an opportunity to gain new experience that may be |
| is found. Unemployment mortgage protection is | | | | helpful if a change in the field that you normally work in |
| needed to avoid that from happening. Most | | | | is being considered. |
| unemployed people will find a job before their | | | | Solid financial security will depend on the combination |
| unemployment mortgage insurance is depleted. For the | | | | of several sources being available when there is a |
| few that don't or must accept a job temporarily that | | | | change in income. |
| pays less than their previous job, unemployment | | | | |