If you are married with a family to support, life insurance is one of the most important purchases you will ever make. Without the right amount of life insurance in place, your loved ones could be forced to make some difficult decisions in the event of your untimely demise. Depending on the circumstances, those left behind could be forced to liquidate assets, sell possessions or even lose the family home.
Buying life insurance is one of the best ways to protect loved ones and allow them to maintain the family home and their desired lifestyle. Term life insurance is one of the least expensive, and most flexible, forms of life insurance coverage, and is perfectly suited to protecting the home in the event of untimely death.
Term life insurance typically runs for a set number of years, making it possible to tailor the amount of the death benefit to the balance remaining on a mortgage. For instance, if you just purchased your home and still owe $250,000 on your mortgage, you could buy a 10 year life insurance policy with a death benefit of $250,000. That allows loved ones to pay off the family home and eliminate the monthly mortgage payment after you are gone.
As time goes on and you pay down the mortgage, you can reduce the amount of the death benefit to match the outstanding balance. Or if you prefer, you can maintain the same death benefit and give your loved ones more money to pay bills and maintain their lifestyle.
If you are relatively young and in good health, chances are you can afford a life policy that more than covers the outstanding balance on your mortgage. Every insurance company uses different rating processes when selling life insurance, so be sure to ask plenty of questions on the policy you need to protect yourself, your family and your home.