Sometimes we’re quite laissez-faire about making sure we’re protected in case of the death of ourselves or a family member.
I’ve had a situation where a father and son bought a rental property together with the son living in one of the units. The father made sure he was insured but, because he thought his son would outlive him, he didn’t insure his son’s life.
You can see where this is going… about six months later the son was killed in an automobile accident and that left the father in a precarious position. He was now forced to take over all the payments on that property and he had to really stretch to do that.
If you’ve got a wife and family you need to make sure everyone is protected in the case of an accident or unforeseen illness occurring. The time to do this is either before you purchase a home together or at the time of purchase.
The best way to get this insurance is to contact a life insurance specialist. They’ll go over all the options between term and life policies and you can pick the coverage and type that’s best for you.
Since life often gets in the way and we sometimes don’t pay enough attention to arranging for our loved ones to be protected, mortgage lenders offer an easy solution.
At the time when you sign your mortgage documents with your lender, they will offer you the option of adding life insurance to your mortgage payment.
The bank’s life insurance covers just the outstanding principal amount of the mortgage and, in the event of the death of any of the home owners, the mortgage would be paid off in full.
Talk to your mortgage broker or bank lender to check on coverage and costs.
Even if you think that you’ll get in touch with your insurance agent later, I’d suggest you sign up for the bank’s life insurance at the time of purchase. You can always cancel this coverage.
You may not get around to that conversation with the life insurance agent before it’s too late!
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