The cost of purchasing a home has increased in recent years. Housing expenditures have also increased. Buying a home and securing a mortgage often means committing to decades of financial obligation. Therefore, it is essential to have a plan to take care of your loved ones and dependents, living in the house, if something happens to you.
Life insurance is a contract between an insurance company and the insured that pays cash when the insured passes away. A genuine life insurance policy ensures that your household stays financially secure. It keeps bankruptcy, loss of income, and home loss at bay. There are two types of life insurance:
- Term life insurance
- Permanent life insurance
Term life insurance provides life insurance coverage for a specific, limited frame. It is usually easy to apply for and can be a cost-effective life insurance option. Death benefits could help pay off your mortgage balance and provide additional funds to your dear ones.
Conversely, permanent life insurance is designed to last your whole life and gradually build cash value. It is also known as Whole Life Insurance. The insurance policy is more costly when compared to term life insurance. This policy has an investment feature, a cash value. Cash value is the portion of your policy that earns interest and may be available for you to withdraw or borrow against in case of an emergency.
Why You Need Life Insurance as A Homeowner/Homebuyer
1. Life insurance provides a financial safety net for loved ones left holding the bag on paying off debts, such as a mortgage.
2. When a parent or breadwinner passes away, life insurance can help you keep your beloved home and also provide income.
3. It generates an inheritance that is tax-free.
4. Gives peace of mind to homeowners with young children and other dependents.
Choose the Best Life Insurance
Choosing a suitable life insurance policy can be a daunting task, like the home buying process. Bubble Insurance aims to help you know the type, coverage amount, and term of life insurance that’s right for you in a convenient way to safeguard your home and loved ones with smart insurance products.