Offered by: Brian Engle – Prudential Advisors
When you buy your first home, the first thought that goes through your head is probably not life insurance. You might be wondering how you’re going to make your mortgage payments or afford furniture. So maybe you think it’s not the best time to discuss life insurance. It may surprise you, but there may not be a better time.
Especially if you are young, your policy may be as affordable as it’s ever going to be. Plus, your house may begin appreciating in value, which makes it even more important to protect it in case something happens to you.
How can life insurance help secure your home?
If the insured person dies, the death benefit from a life insurance policy can be used to help make the mortgage payments so your family can stay in the house without hardship. Either term or permanent life insurance can be an effective way to help provide the appropriate amount of coverage for your family’s needs. A financial professional can help you determine the right type and amount of life insurance to help meet your family’s needs.
How much insurance do you need?
Figuring out how much life insurance you need is more complicated than just covering the amount of your mortgage. You’ll want to provide for paying funeral expenses and debts after you’re gone. Plus, many times, a spouse, child or other relative depends on your income for all or a portion of their support. Many insurance agents recommend a minimum of six or seven times your annual income as a target for the amount of life insurance you should own.