How Term Life Insurance Can Protect the Biggest Purchase of Your Life - Your Home
Term life insurance can provide you that peace of mind and protection for the largest purchase you will ever make – your family’s home; it can either be your first home, a newer, larger home, or that dream vacation home. We all want to make sure that if anything happens to us that our loved ones can stay in the home without worrying about how to make the mortgage payment and/or how to keep that vacation home for your family to continue to enjoy.
There are a couple of key items to consider when looking for term life insurance to protect a mortgage. A few of them are:
- What amount is your mortgage? You should always have at least your current mortgage amount in life insurance coverage. This may sound pretty obvious, but there are those who feel that they will be able to pay off a good portion of that mortgage prior to their passing.
- How long is your mortgage for? Make sure that the term life insurance coverage period is for at least as long as the mortgage. This is extremely important to ensure that your family knows that the entire mortgage will be protected.
These two items are extremely important considerations when considering term life insurance as a means to protect your mortgage. Although they seem like very basic items to consider, they are the most important. Keep in mind, having enough coverage and for a long enough period of time is key. Without these two factors being met, you could be under insured. You should approach getting proper coverage, not with the mindset that nothing is going to happen to you for a long time and that you would be able to pay down the mortgage – but really with the mindset of what if something happens tomorrow? Will the family be okay?
About the author: Jim Marcinkewicz has been in the life insurance business for over 6 years. He is a big supporter of the American Red Cross and teaches both CPR and First-Aid classes. With two daughters in college, Jim knows the expense it takes to care for your family and enjoys helping others prepare their futures as well. You can reach Jim at 1-800-651-1953 or JMarcinkewicz@Pivot.com.