The Importance of Life Insurance for the Homeowner
By Sy Alter, Chartered Life Underwriter
© 2006
Consider for a moment that you are an American breadwinner who is about to purchase a home. Have you given thought to the importance of life insurance prior to becoming a homeowner? After all, your spouse and your children depend upon your income and if anything were to happen to you, you wouldn’t want them to be placed under stress about money, would you? Of course not! You’d want to know they were protected and safe. And one of the best ways for a young family, who lives on a limited income to feel safe, is to purchase term insurance. Why term insurance? Because term insurance covers the time of life when expenses are at their highest. With term life insurance in the amount of your mortgage balance, if you were to pass away, an outstanding mortgage would be fully repaid.
You Would Still Owe the Lender
If you are one of the millions of individuals who recently purchased a new home and are now the proud owner of a long-term mortgage, congratulations are definitely in order. But did you know that if you passed away unexpectedly, your family would still owe the lender all of that money? Would your spouse be able to handle the mortgage payments? What about credit card bills, funeral expenses, property taxes, etc.? In other words, how long could your spouse hold on before they would have to sell the house?
Unexpected Things Happen
The death of a loved one whether a spouse, mother or father is a very traumatic experience for a family, so while pondering these questions may be a bit unnerving, it is a fact of life that unexpected things happen. Would your family be able to cope financially if you were gone? Because there are times when life throws us some curves, it’s important that we do whatever we can to prepare for the future. And thinking ahead is always the best approach.
Term Insurance: The Affordable Coverage
Term insurance provides affordable coverage for a specific number of years, which means when protection needs are high and affordability an issue, purchasing term insurance is often the best choice. Basically, term insurance allows you to obtain crucial death benefit protection at a lower cost than permanent insurance. And having the right amount of insurance coverage can help keep those you love in the home they love.
Need Help Understanding Life Insurance Terminology?
If you are new to the insurance arena and are confused by the many terms and phrases mentioned throughout, a full explanation of Glossary of Terms is provided so that you can easily determine what you need to know when it comes to purchasing a Life Insurance policy.
About the Author:
Mr. Sy Alter is a Chartered Life Underwriter and a veteran insurance professional with more than three decades of experience in the life insurance arena. Mr. Alter specializes in areas of insurance, estate planning, buying and selling insurance, deferred compensation and corporate benefits. He maintains a solid track record of success working closely with families, doctors, lawyers and high profile individuals and businesses. Mr. Alter has also developed a lofty level of expertise providing life coverage to individuals with health impairments ranging from by-pass surgery, hepatitis, diabetes, sleep apnea as well as various types of cancers and other maladies. Mr. Alter has been guest speaker at the Financial Executives Institute as well as many other professional meetings and conferences. As Chairman of Spectrum Direct, he is available for consultations and speaking engagements and can be contacted by e-mail at salter@spectrumdirect.com or by phone at 949.600.7901.
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