When you buy a house, your mortgage doesn’t die when you do. Your mortgage lasts until its paid, which is why home buyer should carry life insurance in the amount of their mortgage, at minimum.
For homeowners with children, it’s an imperative.
When a parent dies, life insurance makes sure that the home gets paid off; that money for education is set aside; and, that nobody grows up broke.
Life insurance ensures that two-income households can remain intact as one-income households; and, that debt doesn’t lead to bankruptcy, or loss of a home.
Life insurance can also be used to establish a trust, which helps to preserve a family’s assets and protect it from taxes.
For home buyers, life insurance is essential. It’s not even dramatic to say that your family’s future depends on it.
The most common and simplest form of life insurance is term life insurance. Term life insurance stays in effect for a fixed number of years — usually 20 — and you pay your premium on a regular schedule.
If you die within the 20 years, the death benefit is paid to your loved one. If you don’t die within the 20 years, then nothing happens. Most people don’t die, which is why term life insurance is cheap while you’re young.
Don’t go without life insurance. Your mortgage doesn’t die when you do.
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Home buyers snatched up properties for sale in May as housing made its v-shaped recovery.