Buying a House
Just got pre-approved for a home loan? Congratulations! That’s a huge step in life – and it takes you so much closer to living the American Dream!
Finding and buying a new home is as exciting as it is stressful: The purchase of a home is a huge undertaking that requires a good deal of forethought and research. But once the fun part of finding your dream home begins, you’ll find yourself spending evenings and weekends driving about town with your real-estate agent, and wandering through what might become your home. And at night, you dream about paint colors and furniture arrangements…
When you find it, you know it. And then everything happens quite fast: Your agent might help you sign the paperwork, you put in an offer, and then you wait, chewing nails, to hear back whether it was accepted. “Hurry-up and Wait” is probably a good way to describe it.
Life Insurance may not be your first thought when you start thinking about buying a house, but don't let it be your last! In the event of a premature death, will your family want the mortgage paid for? Do they still want to remain in the house, or will they want to sell and move elsewhere? Will they be able to sell right away?
Did you know that if you purchase the mortgage insurance through your banker or mortgage company, THEY (the bank or the mortgage company that holds the mortgage) are the ones that receive the money should you die, not your family or beneficiaries? What if your family might need that money for final expenses or other bills?
Buying your own individual life insurance policy to cover the mortgage and other expenses accomplishes many things:
- Cost of individual insurance is less expensive than 'mortgage insurance' through a bank
- You get to name your beneficiaries - this one is HUGE!
- Your family can take the death proceeds and pay off the mortgage or stick the money in the bank, invest it , and use the interest and/or principal to make the monthly mortgage payments.
- You can buy the EXACT amount of insurance you need - that could be more or less than your mortgage. You might only want 2 years worth of mortgage payments with the anticipation that your family will sell the house in that time frame.
- Even though your mortgage will be going down each year, your life insurance will not! This is not true of mortgage insurance through the Bank! You will pay the same price year in and year out, even though your mortgage and therefore the value of the life insurance is going down over time.
Call your team at CB Health Insurance . We can help you make this process as smooth and stress-free as possible.
We will help you make the most important decisions: How much Life Insurance, what type of insurance (do you need it for 20 years, 30 years?), and who gets the money if you die.