Congratulations! Buying a house is a long, exciting, often complicated process, but at the end of it, you have a beautiful new home for your family to enjoy for years to come. It’s also probably the biggest financial investment you will ever make in your life. Your new purchase most likely comes with a mortgage that will need to be paid over the course of the next few decades. You may need essential financial protection to protect your family and home if something should happen to you before that mortgage is paid off.
Take stock of your finances after your new real estate purchase. Could your spouse afford to make the mortgage payments without your income in the event of your untimely death? Life insurance can help cover the mortgage so your family doesn’t have to lose both you and the house. You could purchase a term life insurance policy that is timed to match the duration of the mortgage. For example, if you have 20 years left on your mortgage, you would want to purchase a 20-year term life insurance policy. You would also want to make sure you choose a coverage amount that could pay off the mortgage amount and also take care of other financial obligations, debts, and income replacement.
This is often considered to be the best of both worlds. This type of life insurance gives you the opportunity to have life insurance coverage and also save money for the future. It builds cash value over time much like permanent life insurance does, and you can take out a policy loan if needed. The premiums are flexible, meaning you can change the existing policy to make it more affordable while keeping it in force and continuing to build cash value. And as long as you’re paying the premium, you’re covered for the remainder of your life.