Why is Life Insurance Important for Someone Getting a Mortgage?

Without a doubt, life insurance is designed to help protect you and your family, making it a vital piece of your financial planning. With life insurance evolving over the years to provide different tiers of coverage to fit an evolving set of needs, life insurance is well worth considering no matter where you are in life. In fact, one of the main reasons people consider a life insurance purchase is due to a mortgage payment.1 But is life insurance really all that important when considering purchasing a house and making mortgage payments?
Why You Should Consider Life Insurance If You’re Looking to Buy a Home
While having life insurance isn’t strictly a necessity when purchasing a home, that doesn’t mean it isn’t a good thing to have. Here are a few reasons to consider a life insurance purchase before buying a home:
- A mortgage is most likely the biggest bill your family will have. Buying a life insurance policy that would cover your mortgage debt can help protect your interest and prevent you from having to buy additional mortgage insurance when you buy your first home.1
- If you are the sole or primary bread winner in your home, there is a chance that your family would not be able to continue making mortgage payments in the event of your death. A life insurance policy has the potential to provide financial security to your family in the event of your death by allowing them the possibility to keep making mortgage payments after you die.2
- Having life insurance in place when buying a home may sway a lender to rate your application more highly, the same may apply with landlords when seeking a buy-to-let mortgage.2
While life insurance isn’t a necessity when buying a home, having a life insurance policy in place before proceeding with a house purchase has its share of benefits. In some cases, having life insurance may help a lender rate your mortgage application more highly, and give your family the financial security they need to continue living in their home long after your death.2 There are a number of life insurance options available, so it’s important to speak with a financial advisor or licensed insurance agent to help you decide which life insurance policy is best for you.
Sources:
2. Money to the Masses, Do you need life insurance to get a mortgage?, 2019, https://moneytothemasses.com/quick-savings/insurance-2/life-insurance/do-you-need-life-insurance-to-get-a-mortgage
You might also be interested in...
7 Steps To Choosing Health Insurance
8 Steps to Protecting Yourself Against Identity Theft
Life Insurance You Can Afford
Are Negative Habits Keeping You From Your Financial Goals?
Best Retirement Tips for the Younger Generations
Calculating Life Insurance Needs
Can You Climb Your Mountain of Debt?
Be Careful! You Just Might Get What You Paid For With These Cheap Life Services
Eating On A Tight Budget
Five Costly Disasters Your Auto Insurance May Not Cover
Five Practical Steps to Repair Your Credit
Five Ways to Cut Back on Your Grocery Bills
Four Bad Financial Habits You Need To Break Now
Getting Out of Debt: Start Taking Control of Your Finances Again
Good Financial Habits
How To Deal With Debt During A Divorce
How To Get By On Social Security
How to Host an Inexpensive Dinner Party
How to Rebuild Your Credit and Increase Your Score
Insurance Myths
Is it Worth it to Get a Credit Monitoring Service?
Making Life Transitions
The Pros And Cons Of HARP Refinance
Ten Essential Tips for Managing Your Personal Finances
The Importance of Life Insurance You Can Afford
Top Financial Mistakes That Can Spoil Your Retirement
Top Ten Cheap Ways to Keep Your Kids Entertained
What's the Point of Points?
4 Ways To Treat Rosacea Naturally
4 Natural Remedies For Varicose Veins
8 Ways To Grocery Shop On A Budget
The Holidays On A Budget
Tips For Women On Saving For Retirement
Home Remedies For Heartburn
8 Great Uses For Tea Tree Oil
The Best Natural Treatments For Sinus Sufferers
Old Medical Hacks That Still Work
How To Shop Healthy On A Budget
The Best Home Remedies For Sunburn
Charitable Giving On A Budget
Money-Saving Tips That Actually Work
10 Ideas For Budget-Friendly Family Fun
Can a Reverse Mortgage Save Your Monthly Budget?
How to Get Free Money For College
How To Have A Humble Holiday
Top 4 Ways To Save For College Education
Can you borrow money from a life insurance policy?
Cashing Out a Life Insurance Policy
Can I Sell My Whole Life Insurance Policy?
Layering Term Life Insurance Could Save You Money
5 Tips for Finding Life Insurance That Fits Your Budget
Why is Life Insurance Important for Someone Getting a Mortgage?
Can Getting a Life Insurance Quote Affect My Credit Score?