So you’re pre-approved and working with a fantastic realtor, and can already smell the freshly steamed carpet of your new home. You’ve got a spreadsheet for moving companies, your tape measure is ready to assess whether you are going to need a bigger TV in your new digs (when has the answer to that ever been no?!), and you’re fantasizing about that Facebook post you’re going to make, complete with perfectly posed picture next to the SOLD sign when the big day arrives. But have you thought about how your life insurance needs are going to change once you have the delight/burden of a brand-new mortgage?
BUYING YOUR FIRST HOME? HAVE YOU PURCHASED LIFE INSURANCE POLICY?
If you are a first time home-buyer, your to-do list is likely longer than the line for that new artisanal vegan ice-cream pop up store, and you may have forgotten to add “purchase life insurance” somewhere below “call Mom with the good news” but above “create Pinterest board for the ultimate she-shed”. You’re probably wondering whether it’s even necessary – if you’ve even thought of it at all.
Life insurance is useful at any stage of life, but particularly when you make a big change like taking on a new financial responsibility like a mortgage.
WHY LIFE INSURANCE IS NECESSARY FOR FIRST TIME HOME BUYERS
When you buy your first home, you are getting your first mortgage, which in and of itself is something that warrants congratulations. But this epic achievement also comes with significant financial liabilities that you didn’t have before. You may not have thought about what might happen in the event of your passing, but it’s something that you should definitely consider now that whoever you leave behind will also be left with a large chunk of debt.
ISN’T MY CURRENT LIFE INSURANCE POLICY SUFFICIENT?
Perhaps you already have a life insurance policy and hadn’t considered the possibility of needing to adjust it to reflect your new phase of life. Your Life Insurance Policies will need additional coverage if they were purchased while you were still renting.
WHEN TO PURCHASE, HOW MUCH COVERAGE WILL I NEED AND WHO CAN HELP ME?
A Grand Mutual Insurance Agent can help you determine how much coverage you need based on your debts and current life circumstance. They may also suggest revisiting your policy if you make other changes in your life, such as having children, or purchasing additional investments. Even if you consider this purchase to be a starter home that you don’t plan on living in indefinitely, you should still make sure you are covered. After all, plans can change at any time and it’s always best to have policies in place before you realize you are going to need them.