Buying a home is one of the largest financial investments you will make over your lifetime. And, that debt may be one of the largest bills you pay each month. As a result, it makes sense for you to worry what might happen if you die and leave that debt to your spouse. With life insurance, you do not have to worry. Term life insurance may offer some help in this situation.
How Does Term Life Insurance Work?
Term life insurance is a policy you purchase for a specific length of time. You continue to make payments through that time to keep the policy active. If you die while the policy is in place, it pays a set amount of money to your beneficiary.
At the end of the term, you can also decide to extend the policy to a new term. A simple design and straightforward process, term life insurance can help meet financial goals for a specific period of your life.
How Does It Help with Your Mortgage?
Create a life insurance policy that fits your needs. You can build into it enough funds to cover specific needs.
For example, you could choose a policy with enough of a payment to cover the entire cost of your mortgage loan. If you die, your spouse can use the funds to pay off the debt. He or she does not have to worry about this financial obligation again. Therefore, their personal solvency will remain intact.
Your spouse may wish to move if you die. Or, he or she may no longer want to maintain the home. In this case, your spouse can use the funds to pay for day-to-day living expenses, a new home, or anything else. Your policy gives the funds to your spouse. However, your spouse has the ability to decide the best way to use those funds if you should die. If you want more control over these issues, however, consider placing the money in a trust to govern its use.
With a new home comes new financial responsibilities. In every situation, it pays to have a trusted, experienced agent to help you decide. The investment in term life insurance tends to be less monthly than the cost of whole life insurance. Choose the value of the policy that fits your needs. It could be just enough to cover the mortgage. Or, you could choose a policy worth significantly more. The key here is simply getting a policy in place to cover this debt. Ask us, your independent insurance agent for more information on Tampa life insurance.