Home Improvements May Change Your Need For Life Insurance
Did you know May is National Home Improvement Month? Now is the time many people will start planning their next home remodeling project. They may be thinking of putting their house on the market or just trying to improve their homes for their own pleasure. The cost to perform home improvements can be very expensive and many people may take out home equity loans or refinance their mortgage to pay the costs for the improvements. Taking home equity loans or refinancing your mortgage may result in an increased need for life insurance to payoff these increased debts.
Recently a friend told me he and his wife were putting their home on the market to buy a condo. They have retired and found the cost to upkeep of their home has become expensive. As they are aging, they don’t want to deal with the costs and the time of the upkeep. They have had to upgrade the kitchen and bathroom to improve the market value by using savings and retirement proceeds to pay the costs rather than borrowing money until they sold the house.
As they reviewed their options, they realized that they hadn’t reviewed their life insurance policies and reassessed their situation since retiring. They found paid up life insurance policies on their children who are now married with different names. The addresses were not current and the beneficiary designations needed to be updated.
While reviewing their former company benefits, they realized their group life insurance reduced from five times their income when employed to one time their income at retirement for a number of years until, ultimately, expiring. This review resulted in a thorough review of the life insurance program resulting in the need of additional life insurance on their lives.
And remember, while considering home improvements during National Home Improvement Month, take a moment to consider the impact of the money you are going to spend to make the improvements and the effect it may have on your life insurance needs.
About the author: Ken Buccico holds a LUTC designation and has been in the life insurance business for 39 years. His wealth of experience empowers clients to make best possible decision regarding a life insurance policy. To explore the best life insurance option, contact Ken at 1-800-651-1953 or KBuccico@Pivot.com.