I walk through the neighborhood from time to time and meet homeowners everyday. A few weeks ago while walking I met a young man who had been laid off, but still wanted to meet later and discuss what his options were regarding permanent life insurance and charitable giving. Great! Here's the bad news. When I called on him a week later, I was informed by his mother that he had been killed after being struck by a motorcycle.
Wow!
Luckily, she had a policy on him to help the family, financially, deal with the tragedy.The death of a loved one is the worst tragedy a family can endure. But if that loved one passed away without life insurance, the financial chaos that follows can make the grieving process seem intolerable.
For most Americans, the most valuable investment they'll make is their home. But each year, thousands of homeowners pass away before their mortgage is paid off -- many of them without life insurance. Sadly, without a life insurance benefit, many grieving families can't afford the mortgage payments.
That's why homeowners may want to look at the flexibility of using term life insurance to protect their families and their mortgages.
In addition to being the most affordable form of coverage, term life insurance allows consumers the freedom to mold a policy to fit their personal needs. Consumers select their own coverage amount, term length and more, making it term life insurance ideal for homeowners who need a 10, 20 or 30-year life insurance policy to protect their mortgage.
By purchasing a term life insurance policy that matches the length of their mortgage, homeowners virtually guarantee their family's financial security. If the homeowner passes away before the home is paid off, their life insurance benefit gives the family the flexibility to pay off the mortgage or any other necessary items that may be on the horizon. Why just pay the mortgage company and leave the family, whom you love, high and dry?
For example, if a homeowner has 20 years left on his mortgage, he could purchase a 20-year term life insurance policy to protect his mortgage. If he passes away before the home is paid off, the life insurance benefit is used to pay off the mortgage.
Term life insurance is an excellent way to protect a mortgage. The premiums are reasonable and policyholders choose the level of coverage they purchase not just the amount that will cover the home.
Unlike whole life insurance, term life insurance focuses on providing low-cost coverage during the time you need it most -- when you're still paying off your home. After you retire, your home will be paid off and your life insurance needs will probably decrease, so why stick yourself with a pricey whole life insurance policy?
Another reason to consider term life insurance is affordability. A healthy 40-year-old male can expect to pay roughly $30 per month* for a $500,000, 20-year level term life insurance policy. The average rate for a female seeking the same coverage is about $25 per month.
*Insurance Information Institute
Protect your family and secure their future by getting free term life insurance quotes with Atlanta Insurance Advisors.
