Buying a house with a loan is a common way to become a homeowner but having a loan on a house is a big responsibility. If you are married and are the primary breadwinner of the family, you should consider buying a term- life insurance policy if you have a loan on your house. By doing this, you can protect your family and have the coverage you need if anything ever happens to you. Here are several things to know about buying term life insurance for this purpose.
Term Life Is Affordable Compared to Other Options
If you buy a house in your 20s or 30s, you will not have the house paid off until you are 50 to 60 years old in most cases. If anything happens to you during this time, your spouse and kids will be left with the house and the mortgage payment. The good news is that if you purchase term life when you are young, it will not cost a lot of money. Policies for people in their 20s or 30s are very affordable, yet they offer the coverage people need in this age category.
Term Life Is Not Permanent
One of the reasons that term life is affordable is due to its nature. Term life insurance is not a permanent type of insurance. Instead, it offers protection only for a certain period of time. You could choose a 30-year plan, for example, and this would give you coverage for the next 30 years. If you died during this time, you would receive a payout from your policy. Other people choose 20-year plans, but you can choose just about any length you would like.
Term Life Offers a Way to Pay Off Your Mortgage and Other Debts
The key benefit offered by term life is that you will get a guaranteed payout during the time span of the policy. If you choose the right amount of coverage, you should have enough to pay off the entire mortgage balance owed on your house as well as any other debts you may have. You could even get a policy that is large enough to help pay for college for your children.
If you would like to have the protection you need for your home and family, choosing to buy a term life insurance policy is a good choice. You can get a quote for coverage by contacting a life insurance agency of your choice.Share