Why You Need a Life Insurance Policy for Your Home
If you’ve recently married, started a family or bought a house, it’s easy to be optimistic about the future. But what would happen to your family if you were to unexpectedly pass away? Would they struggle to get by?
Life insurance is particularly worth considering when you’re a homeowner. Here’s why:
Why life insurance?
Your home is one of your most expensive purchases, and you want to be sure it’s there for your family even if you’re not. If you die, would your family be able to continue making the mortgage payment? They will if you have a life insurance policy with a face amount that covers what you owe on your home. Even families with new life insurance policies can help protect their families more, because they’ll be covered by the policy as soon as it goes into effect.
How long does it last?
You’ll want to set up life insurance coverage to last the duration of your mortgage. Suppose you have a 30-year home loan. Purchasing a 30-year term life insurance policy with a death benefit that matches what you owe on your mortgage can help ensure that your family can pay the mortgage in the event that you pass away. If you don’t pass away, the policy ends in 30 years—the same time the balance of the mortgage will be paid.
Are there options?
Your home might not be the only thing you want to protect for your family. A life insurance policy can be set up with a larger payout than just the amount you owe on your home. The additional money could be used by your family for other important needs—for child care, perhaps, or college tuition.
Also, because what you owe on your home decreases over time (as you pay down your mortgage), your family could end up with a life insurance payout greater than what’s left on the mortgage, leaving them with money for things like retirement or health care.
The bottom line:
Before you decide on how best to protect your family’s financial future, it’s worth talking with a Life Specialist at AAA for a no-obligation needs analysis. (Or call 877-839-5318.) This simple conversation uses easy-to-answer questions to identify the right insurance products to help meet your current and future needs.
You’ll find out what makes the most sense for you and your family, and you can rest easy in the knowledge that those you love will be more secure in their home even if you’re not there to provide for them.