When I say “buying a house,” what kind of insurance do you think of?
Homeowners insurance. Obvious, right? But there’s another type of insurance you should consider with a few amazing-yet-unexpected benefits for new homeowners. Give up? It’s… life insurance.
Mortgage payments and the cost of upkeep won’t stop with an untimely passing.
Life insurance is a significant tool for homeowners because it’s a great way to help protect your loved ones from a sudden and unexpected financial burden. Your family wouldn’t have to lose their home because of missed payments, and if you co-signed a mortgage with someone outside your nuclear family, the benefits of life insurance have the potential to cover your contribution for a time, not leaving that friend or business partner in a financial bind. As for the upkeep of your home, a general rule of thumb is to set aside 1% annually of the purchase price of the house for routine repairs and/or maintenance. For instance, if you paid $250,000 for your home, set aside $2,500 each year. So if you’ve already had to convince yourself that the hole in the roof is almost, sorta, kind of the same as that skylight you always wanted to put in, just imagine what your family might experience if the income you or your spouse provides was no longer available.
Not sure if you have the right policy to help out with your new home in the event of a sudden death? Be sure to talk with a financial professional to make sure you’re financing the future you want – and that you’re doing everything in your power to help your family stay in the house that you’re all working to make a home!