Buying a Home? Term Life Insurance Can Give You Peace Of Mind
When purchasing a home does a term life insurance policy come to mind? It probably doesn’t, but it should. Of the many dreams people have one of the biggest, in my opinion, is owning their own home. When it comes to term life insurance policies, or any type of life insurance for that matter, take a step back and think about the things you would want life insurance to cover for you when you pass away. Having a term life insurance policy in place that you know will provide an amount of money that allows your family to pay off that mortgage, or what’s left of it, and stay in the home eliminates a great burden.
For most people they may have a 20 or 30 year mortgage but they hope to pay it off sooner rather than later. With term life insurance you can purchase a 20 or 30 year policy and if you end up paying your mortgage off early you could either cancel the term policy or keep it for the entire term.
For many people purchasing a home is something that takes time and planning. Initially, you go through a period of building up your income, savings and maybe renting a place of your own. If you have dreams of one day owning your own home I recommend you start gathering quotes on term life insurance as soon as you can. Even if you are in your early twenties and don’t plan to purchase a home anytime soon, the rates for term life insurance policy can be very inexpensive at a young age. If you get yourself started with a 10 year or 15 year term life policy, you will already be in a great position to protect your investment when buying a home. You would want to reevaluation your term life insurance policy when at the time you purchase a home to determine if it still the right amount of coverage or if you need more.
Some people are unsure of how much term life insurance they need to start off with. I always recommend examining the largest assets and expenses in your life. Consider items like mortgages, loans, credit card debt, and raising young children. Then think of how a family would handle these responsibilities without the primary source of income, if you are the sole or majority income earner. Next, look at these different areas and rank them by largest debt down to the smallest. For many people a mortgage may be the biggest debt they have. If you get yourself started with a term life insurance policy to cover the amount of the mortgage, you are taking a positive step towards providing the protection and peace of mind for you and your family.
About the author: Dan Cody has been in the life insurance business for over 7 years. He loves playing a variety of instruments including the guitar, bass, drums, and piano. He also supports cancer research foundations and volunteers at local pet shelters. Dan enjoys helping customers understand life insurance, so they can find a solid policy that fits their needs. You can reach Dan at 1-800-651-1953 or DCody@Pivot.com.