What Life Insurance Should I Get When I Buy a House?
So, you and your spouse finally took the plunge and bought a home! It is an exciting and scary step all at once. What would happen if your spouse died unexpectedly? Would you be able to make the mortgage payment?
Did you know that you can purchase life insurance to cover the mortgage payoff so that you can stay in your home?
Let’s say that you take out a 30 year mortgage for $200,000. You can purchase a life insurance policy for a 30 year term with a face amount of $200,000. The rate for your life insurance policy is guaranteed for the entire 30 years. At the end of the 30 years, you can let the policy expire; renew it at a rate based on your age at that time; or you can convert part of it to a permanent life insurance policy that builds cash value.
Life insurance is generally the cost of a few lattes a month. And, it gives your family the peace of mind that they can continue living in the home where you have built so many memories!