One of the primary reasons to purchase term life insurance is if you have a mortgage on your home.  Whether it’s just you and your spouse, you and your family, or just you, if you own a home you should think about purchasing life insurance to protect the ones you leave behind if you died prematurely.  Having a mortgage isn’t just like having a couple hundred dollars charged on the credit card; a mortgage typically is hundreds of thousands of dollars.  Imagine if you passed away unexpectedly, you would be leaving your loved ones alone to somehow manage those payments on one income.  Term life insurance can help alleviate the financial stress your death would bring.

Scenario 1 – You and Your Spouse

If it’s just you and your spouse or significant other, the idea of purchasing a term life insurance policy that would cover the mortgage payment should be considered.  Unless your spouse relies on your income or you have other pressing financial concerns, purchasing term life insurance with coverage totaling your mortgage loan amount plus enough to cover final expenses (personal debt, burial and funeral) is a good start.  Your term length, the amount of time you have coverage for, should be however long you think it would take to pay off your mortgage.

Example:  Let’s say you are 35 years old.  You have $200,000 left to pay on your mortgage.  You estimate that with your current monthly payments you will have the loan paid off in 30 years.  You apply for $250,000 of life insurance coverage with a 30-year term length.  This would cover the house payments and enable your spouse to not have to worry about funeral costs.  The average price of this term insurance policy is about $24 per month.  Peace of mind at a small cost.

Scenario 2 – You and Your Family

If you own a home and have a family, purchasing a term life insurance policy that would include covering the cost of the mortgage along with making sure your loved ones’ standards of living go unchanged would be best.  Your spouse/significant other would be left to cover the mortgage and pay for your children’s care on one income.  With life insurance, your family would not have to face financial struggle along with the devastation of losing you.

The ages of your children and whether you want the life insurance death benefit to cover their college schooling would determine how much life insurance to apply for.  Here at Quotacy, you can run as many instant term quotes as you like and use the Needs Analysis Tool to help calculate the recommended amount for your situation.

Some life insurance is better than no life insurance.  Term life insurance can be easily adjusted to fit your income and needs.

Scenario 3 – You

Maybe you own a home and live by yourself.  If anyone helped you by co-signing for your mortgage loan, they would end up footing the bill if you died prematurely.  They helped you when you needed it, help them by covering yourself with life insurance.  Because you do not have any dependents relying on your income, getting a term policy that mainly covers just the mortgage may be adequate.  If anyone co-signed on any other loans for you though, be sure to add the loan amounts for those (e.g. student loans) into the equation.

The younger and healthier you are, the more inexpensive life insurance is.  Waiting too long may bring high premium costs and there is always a chance something may cause you to be uninsurable.  Whatever situation you’re in, whether you’re single or have a family looking up to you, work with an insurance agency to help you protect your loved ones.  At Quotacy, running term life insurance quotes is easy and instant, and you are not asked to give up any personal contact information just to see the estimated cost.  Buying a home is one of the biggest steps in building your future; protect the future of your loved ones with life insurance.

 

Related Posts:

Term Life Insurance for Couples

Your Family Financial Roadmap

How to Shop for Term Life Insurance Online

Pin It on Pinterest