Term Life Insurance For New Home Owners
Are You a New Home Owner?
New home ownership is a thrilling time in anyone’s life. You now have a chance to enjoy a safe haven for yourself and your family. As you enjoy your new property it is also important to think about how to protect your new asset. Should you die unexpectedly, how would your family pay the mortgage?
As most home loans are long-term financial commitments for you and your spouse, considering a term life insurance policy is a complete necessity in your financial planning. The last thing anyone wants to think about are unpredictable tragic events. However, how would your family be able to keep the new home should you unexpectedly pass away? Buying a term life insurance policy will help ensure that your spouse and children will be able to continue living in the new home that you worked so hard to purchase.
How Does Term Life Insurance Protect Your New Home?
Term life insurance policies are easy to understand and the protection is basic. First you must choose a particular face value for the policy and then choose the term, or amount of time, you wish to be covered. The policy face value depends on several factors. Usually agents will tell you to buy about 10-20 times your annual salary. However, you must also consider how much debt you have accumulated and how much your family would need to survive should your spouse be unable to work. It would be wise to have all the basic bills covered, including auto loans and credit card debt.
Aside from deciding on a face value, the length of your term life insurance policy also depends on factors such as the age of your children and how much income you anticipate to have earned once your children are grown and making their own income. If your children are almost adults you will not need an overly lengthy policy.
Basically, consider your mortgage. Will the term life insurance benefit paid out to your spouse be enough to pay the house off in full? If your spouse prefers to continue making monthly mortgage payments for tax purposes, will the benefit last for the duration of what is left in the number of payments?
Peace of Mind
You can easily and quickly obtain a term life insurance quote online. Having a term life insurance policy in place will guarantee that your family will enjoy your new home, with peace of mind, for years to come.
Article by: Sharon Taylor. Ms. Taylor writes life insurance and other financial management articles for numerous web sites across the Internet and her easy to understand style receives very high marks among her readership audience.