Why New Homebuyers Need the Protection of Life Insurance Coverage
4.28.2023 | Category: Article
From homeowner’s insurance to flood and disaster policies, new homeowners need an array of coverage to protect their investment and their finances.
But there’s one type of insurance homebuyers often overlook that can be vital to protecting their budding kingdom — life insurance.
With the right life insurance policy, a homeowner may enjoy the peace of mind that comes from knowing, if something were to happen to them, the mortgage would be paid.
That’s a comforting promise to make, since a mortgage can be the largest single debt a family has. How large? Long-term interest payments on a 30-year mortgage can end up costing two to three times the amount of the original loan.
While life insurance can be seen as a form of mortgage protection, it shouldn’t be confused with mortgage protection insurance, which pays death benefits directly to a mortgage lender. Life insurance gives beneficiaries the flexibility to use benefits however they like.
Depending on the policy, life insurance coverage can offer more than just death benefits to help a family stay in a home mortgage-free. Other features could include:
- Money to help pay the policyowner’s monthly mortgage payment if they can’t work due to illness or injury
- Refundable premiums if the benefits are not used before the end of a policy year
- The option to choose term of years that most closely matches a mortgage term
Our parent company, Mutual of Omaha, can help your clients find life insurance coverage that best fits their needs and can do a full financial check-up to ensure they and their loved ones are protected.
Coverage may not be available in all states and may vary by state.
Life Insurance and annuities are underwritten by United of Omaha Life Insurance Company, 3300 Mutual of Omaha Plaza, Omaha, NE 68175. United of Omaha is licensed nationwide except in New York and does not solicit business in New York. In New York, Companion Life Insurance Company, 425 Broadhollow Road, Second Floor, Melville, NY 11747, underwrites life insurance and annuities.
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