3 Reasons Why To Review Your Life Insurance Policy After Buying A Home
Have you recently purchased a new home or are getting ready to purchase a new home? If so, congratulations! Buying a home is an exciting step in your life and a goal of many. After all, a home is a place to call your own, a place of comfort and security. Whether you’re planning to raise a family, enjoy the single life, or even newly wedded bliss, there are few things in life that beat home sweet home. As you begin settling into your new house, there is something that you will want to consider. Although you may be more preoccupied with closing the deal or moving your belongings, you may also want to add reviewing your current life insurance policy to the list.
Here are 3 reasons why you should review your coverage after settling into your new abode.
1.) Marks a Change in Your Financial Status
Perhaps the most important reason, buying a home marks a change in your financial status. If you’re like most homebuyers, you likely decided to opt for a mortgage to finance this purchase. While this is a sound decision, you must also consider the possible financial implications of this choice. A mortgage can significantly alter your debt to asset ratio. Buying a home often means an increase in coverage for most life insurance policyholders. Why? A home changes your financial status remarkably, and as such, it is wise to put protective measures in place to secure this newly acquired asset.
2.) Provides Protection for Valuable Assets
A home is often one of your most valuable and largest assets. In fact, for most people, buying a home is the single largest purchase they ever make their entire lives. Needless to say, a home is no little purchase, thus, it only makes sense to protect this purchase. For most people, this protection is often provided through homeowners insurance. However, this is only one type of protection. What about financial protection? For example, if you’re using your current income to help pay off a mortgage or other household expenses, what would happen if that income were to go? If you were to suddenly pass, your family could be left to foot the bill of maintaining your home, not to mention final expense costs.
3.) Ensures Only Optimal Coverage
Above all, it is important to review your life insurance policy periodically because over time needs change. Depending upon what stage you are at in life, your coverage needs could be vastly different. For example, a young family who recently purchased a new home versus a retired couple who purchased a new home will likely not have identical coverage needs. It’s important to regularly review your coverage to ensure that you’re only paying for the coverage you need. In addition, there is also a chance your beneficiaries could change as well, so never overlook the importance of a periodic review.
Need to review your coverage but lack the time to do it? Don’t worry, we’ve all been there. Luckily, that is where TermLifeInsurance.com can help. We’ve created a simple and hassle free way to compare and review quotes instantly. Get started now or contact us directly with any coverage related questions you may have.
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