Life Insurance For New Homeowners
This is a big moment. You saved up for a down payment, picked out the perfect spot and closed on your first home. But after you’ve enjoyed your initial celebration, you may want to take a moment to think about what would happen if you suddenly weren’t around to make your mortgage payments. If you were to die unexpectedly, would your family be able to keep the house you worked so hard to get?
In a perfect world, your family would never have to face this scenario. But if they did, having a life insurance policy in place could help financially protect your loved ones and keep them in the home you bought together.
Life Insurance Costs
If you’re avoiding life insurance because of the cost, it may be more affordable than you think.
In LIMRA’s 2016 Insurance Barometer study, surveyors found participants overestimated the cost of a 20-year, $250,000 term life insurance policy for a healthy 30-year-old by more than twice the actual cost.1
If you purchase your policy while you are young and healthy, you might be able to lock in an affordable monthly premium for a 20-or 30-year policy.
Other Uses for Life Insurance
Mortgage payments are just one of the many possible uses of a life insurance death benefit. The goal of a life insurance policy is to allow your beneficiaries to maintain their standard of living, even after the loss of your income.
Beneficiaries can use a payout for whatever they want, but some common uses for death benefits include:
- Daily living expenses
- Funeral costs and final expenses
- Inheritance planning
- Estate taxes
- Medical bills
- Student loan debt
Ready to dive deeper into the world of life insurance? You can read our article about the different types of life insurance and keep planning for your family’s financial future.