The Importance of Life Insurance as a Homeowner

If you were to pass away suddenly, do you know what would happen with your family’s finances? This is an important question to consider when purchasing a home. Most homeowners are aware that home insurance is a necessity, but many forget the significance of life insurance and the positive impact it can have on your family. 

Knowing the amount of life insurance that you should obtain can be tricky. According to Fairway, “Life insurance is important even if you expect to live for many more decades. Accidents and illness happen, and not having life insurance could put your family in a devastating financial position, including when it comes to your house.” Fairway also states that “your loved ones may be forced to sell your home if they cannot afford the mortgage payments, property taxes, or other debts you leave behind.” 

NerdWallet says that “If you’ve recently gotten a mortgage for a home, life insurance can help you avoid leaving behind a large loan for others to manage. You may want to buy a policy or increase your coverage amount in the following circumstances:

- Your family would struggle to make mortgage payments without your income.

- You co-own your home with your partner or spouse, or someone else co-signed your mortgage, and you don’t want them to shoulder full responsibility for mortgage payments.

- You want your loved ones to inherit your home, but your estate doesn’t have enough money to pay off the mortgage.”

Life insurance is not a “one size fits all” situation. We offer both temporary and whole life coverage.

Temporary Insurance (Term Life) you can protect your mortgage, fund your buy-sell agreement and provide collateral for your loan. Term policies allow you to pay a set premium that will not increase until your term duration is complete. These policies may allow you to convert to a permanent policy without underwriting.

Our current Permanent Insurance (Whole Life) policy is intended to last for a lifetime, regardless of when death occurs. If you pay your premium (and any outstanding loan interest), we guarantee a death benefit even if you live to be 120.

To receive a life insurance quote, please contact our agency or visit our website.