Why Getting a Mortgage Means it’s Time for Life Insurance

Aside from tying the knot or having kids, having a mortgage is a major commitment.

About a third of the average U.S. household’s spending in 2022 went to housing, rising to $24,298 a year.

If you have a mortgage, you need life insurance. That’s because if you pass away, your survivors will be on the hook for the payments – but they won’t have your income anymore.

Covering the mortgage is just the beginning. Here are seven more reasons why mortgages and life insurance policies go hand in hand.

1. Property taxes

It should come as no surprise that after you’re gone, your tax bills will keep coming. That’s why cash – in the form of a life insurance payout—can reduce financial stress for your loved ones.

2. Homeowner’s insurance

Homeowner’s insurance is a given, whether your house is paid off or not. You wouldn’t let your policy lapse, and certainly wouldn’t want it to lapse for your survivors. Life insurance helps make sure the bill gets paid.

3. Utilities

A house isn’t much good if the lights, stove, and internet don’t work. So remember that if your loved ones will be staying in your home, those basic needs will need financial support.

4. Maintenance

Houses need regular maintenance to run smoothly and repairs can be very expensive. Life insurance can provide a cushion when a planned or unexpected cost pops up.

5. Homeowners association fees

If you have a homeowners association, their fees are unavoidable. So, add this expense to the list of needs that life insurance can help meet.

6. Emergency fund

An emergency fund can help cover the items above while the money lasts. Life insurance and an emergency fund both protect against the unknown, so your loved ones can manage the bills.

7. Credit card debt

Credit card debt can be pricey if you carry a balance. While life insurance can help take care of mortgage payments, make sure your survivors can also wipe out credit card debt.

 

Mortgages and life insurance go together

Once you get a mortgage, it’s time for life insurance. Broadview Insurance Agency’s partnership with Ladder makes it simple. Get a term life policy quote in just a few minutes.