As a responsible husband or wife, we always try to plan ahead and think about the future. It’s a common worry to think about what would happen to our families if something unfortunate were to happen to us. Where would they live? How would they continue to live? One of the most important ways to ensure that they are taken care of is mortgage protection.
In today’s post, we’ll discuss how life insurance can help protect your family’s home needs just in case because no one will protect your family like you!
Link Between Life Insurance And Your Mortgage
As we all know, life insurance is a contract between you and the insurance company where you make regular payments in exchange for a sum of money to be paid out to your beneficiaries upon your passing. So how does life insurance help safeguard your family’s mortgage needs? When you take out a life insurance policy, you can choose the amount of coverage you need. This can go towards covering monthly loan repayments or full repayment of the mortgage in case of your untimely passing. This means that your family won’t have to worry about losing the roof over their heads or mounting mortgage repayments!
Benefits of Mortgage Protection
One of the main benefits of life insurance is that it offers financial security and peace of mind. In case of a critical illness or premature death, life insurance can help your family avoid financial hardship and maintain their standard of living. With life insurance, they can focus on supporting each other emotionally and moving forward with their life without having to worry about the financial burden caused by mortgage payments.
Mortgage Life Insurance Vs. Term Life
For mortgage life insurance policy, some go for a whole life policy to accumulate cash value and other benefits, some get term coverage, while others get covered with both! It just depends on what options are available based on things like health, weight and budget.
Term life insurance can give your family flexibility with how they use the life insurance payout. With term life insurance, you can match your coverage amount and policy length to your mortgage. You could also pick a coverage amount or length that factors in other financial responsibilities, such as your annual income or children’s college tuition.
Mortgage life insurance is a whole life product with a specific purpose, which is paying off your mortgage balance! You can also usually choose to cover only part of your mortgage. But other than that, you have no flexibility in the amount of coverage you receive. If your family’s financial needs change over time, mortgage life insurance won’t give you options. Any payout goes to the mortgage lender.
Since term life is temporary coverage, we recommend getting it as a supplemental policy to a permanent one to ensure you are always insured and your family will have no worries on that front!
Can I Afford Mortgage Protection?
Another important factor to consider when taking out life insurance is affordability. There’s no denying that mortgage payments are a significant portion of our monthly expenses. However, the cost of life insurance needn’t be out of reach for most people. There are many life insurance policies available in the market designed to fit different budgets and financial situations. You can choose the policy that suits your needs, and most importantly, your budget.
Moreover, life insurance policies can come with added benefits like tax-free payments and adjustable premiums. In some cases, you can even borrow against the policy’s cash value without tax implications!
Conclusion
Being financially prepared is one of the most important things you can do for your family. Life insurance helps ensure your family is protected and able to maintain their mortgage payments if something happens to you.
The cost of life insurance doesn’t have to be expensive, and there are various policies available to fit your budget. So, if you’re concerned about your family’s home life and financial well-being, consider taking out a life insurance policy to protect their future.
Call us at 732-705-1332 or contact us online here to get started now!