If you’re a first-time homeowner or one of many applicants who are trying to obtain a first mortgage, you already have a long list of important decisions regarding your financial wellbeing for the future. What many people fail to realize that this is a perfect time to consider another major responsibility: their life insurance, as well as the ongoing stability of their partner and family. If you’re unsure how these two life changes could be related, here we’ll look at four important reasons why new homeowners should consider a life insurance policy, and the financial peace of mind that it can provide.
1. Insurance protects your spouse and family.
Believe it or not, many people avoid thinking about contacting a life insurance company because the topic itself relates to their own mortality. However, being responsible as a homeowner also means lining up every possible assurance for your loved ones and possible beneficiaries. To put it into an appropriate analogy, think of shopping for the right life insurance policy with the same open-mindedness as browsing for your new home’s kitchen cabinets. When you visit a potential life insurance company, imagine asking yourself the same line of questions as you would in a cabinet showroom: which type is the most sturdy? Which will last the longest? What is the right amount of coverage needed? Most importantly, which type of life insurance will hold up over time as the wisest investment? Breaking down the different types of policy options into easier, pragmatic needs can ease the stress of thinking so far ahead.
The first, and perhaps most important reason, to consider insurance at this stage is to keep your partner and family members in mind. If you die, are they responsible for your new home’s mortgage or home loan? Although you may not want to think about such a potential scenario, the fact of the matter is that the best life insurance company will help you match a type of policy that’s comparable to your annual income, which guarantees that your family can carry potential debts in the event they ever have to face the mortgage responsibilities without you.
2. Life insurance demonstrates responsibility.
It may not be on your horizon now, but you may want to apply for all sorts of different loans later in your life. As a young person moving into their first home, you’re in a unique situation to begin using your good health and long life expectancy to build up solid credentials for a wide range of loan options as the years go on. Perhaps you may want to start a business or company of your own, or even purchase a second home if your finances are solid enough. Having a long term insurance policy helps prove your financial worth and responsibility, and looks good for those future lenders during your application process.
If this credit-builder sounds interesting to you, you can check out some online life insurance quotes now and find out your possible eligibility! Looking into the best rate for the best coverage is easy with an online life insurance comparison tool.
3. Insurance policies can help with a potential relocation.
If the idea of life insurance’s positive effects upon your credit standing is a good incentive for researching possible policies, keep in mind that such a solid credit report can also help if you ever decide to move as well. You may be looking at your first home now, but if a life insurance term length lasts for decades, at some point you and your family may wish to relocate. There are many different forms of policies, including a type of permanent life insurance, which has coverage options that reflect well on future mortgage applications and real estate portfolios. If you ever want to move, your life insurance coverage is another added benefit to your credit profile.
4. Life insurance can be more expensive later in life.
Finally, consider the fact that, at some point, you’ll probably want to purchase a type of life insurance anyway. You and your spouse may be young, energetic, and have peak health on your side at the moment, so use that to your advantage for an affordable price while you can. As a person gets older, the cost of life insurance goes up, which can negatively impact the initial cost, as well as the regular premiums and the kind of coverage available. If you want to save money in the long run, shop for your ideal life insurance policy concurrently with the purchase of your first home and get the best benefits while your youth is an asset. In the end, you’ll only add a higher rate of potential payout many years from now, and you’ll be happy you made the investment when you did.