Owning a home is a major accomplishment, making it that much more important to protect. One way to do so, in addition to homeowners’ insurance or mortgage insurance, is by having life insurance. As hard as we try, there is no way to predict the future, and something can happen at any time. It’s crucial that you work to protect that investment with a fail-safe plan designed to help your loved ones carry on even after you’re gone. We’ve rounded up a few policies that every new homeowner should consider when searching for life insurance quotes online.
Why Life Insurance Is Necessary for Homeowners
One of the leading causes of foreclosures is a homeowner dying. Without someone to make the mortgage payments or keep up with the property, it’s only a matter of time until they potentially lose it. While it might seem redundant if you already have a homeowner’s policy, life insurance can actually work in tandem with your homeowners’ policy to provide maximum protection for what matters most.
A Whole Policy Over Term
If you already hold a term life insurance policy – as in a temporary one that lasts for a set amount of time – it may be time to adopt a whole policy instead. Once you’ve introduced a long-term, large investment like a home purchase, having sufficient, set life insurance from beginning to end is even more crucial. Sometimes this switch can be easy, or it may mean purchasing a new policy to help cover your additional obligations in owning a home.
One with Proper Coverage
People often forget to update their policy or take out the coverage they need even after a big life event like a home purchase. Whether this is your first time purchasing life insurance or working on you’re upgrading your policy, proper coverage can make all the difference. Not only will you need to factor in your income, but also the cost of assets and how much your beneficiaries will need to carry on after you’re gone. Many experts recommend having a policy that at least covers the cost of your remaining mortgage to be used in case of emergency.
An Affordable Option
Don’t be fooled by manipulative life insurance companies that promise to give you the best insurance possible but with a hefty price tag. Because a home purchase is usually the largest one for Americans, it’s likely that you don’t have a ton of money to spare on insurance. Luckily, plenty of brands offer the coverage you need without making financials unbearable. It’s easier than ever to find affordable life insurance online in a matter of minutes.
The Bottom Line
Skipping on a life insurance policy, especially when purchasing a home, is a big mistake. In order for your loved ones to continue maintaining the home or simply protecting your investment for another reason, access to funds is essential.