It may not be the most popular birthday or holiday present, but when you own a house, the greatest gift you can buy for a loved one is term life insurance.
This is especially true for households where two incomes are used to make the payments each month.
How would your partner or spouse handle the mortgage if you unexpectedly died? Because the mortgage doesn’t cancel when one of the people named on it passes.
The mortgage passes on to those who survive, and reduction in household income is the number one reason why homes get foreclosed.
Thankfully, you can protect against a risk like this. Buy life insurance.
Life insurance is insurance that makes a payout when the policyholder dies. And, because fewer than two percent of policies are ever claimed, insurers can offer life insurance cheaply.
Generally, a million-dollar policy will cost a person in their 20s or 30s around $35 per month, which is a small cost for the large amount of protection provided.
For most people, $1,000,000 is enough cash to pay off a mortgage; pay off student loans and credit cards; pay off a car; and, cover the costs of a funeral. It’s fair to say there’d be additional money left over, too.
Life insurance reduces the burden on your loved ones when you die. Don’t buy a home without it.
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When your lender says, “you have to act quickly” is not some high-pressure sales tactic meant to make you feel fear. It’s the truth.