Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Do You Have to Have Life Insurance to Get a Mortgage?

You aren't required to have life insurance to qualify for a mortgage, but purchasing life insurance before buying a house can benefit you. If you die unexpectedly, a life insurance policy can offer peace of mind for your family. The death benefits can be used to pay your mortgage payment, along with other financial obligations.

Consider Your Family's Financial Situation 

Whether both you and your spouse contribute to the household income, you make the most money in your household or are a single parent, a life insurance policy can help your family cover the expense of a mortgage after your death. So if your spouse or family would have a hard time making mortgage payments after you die, your life insurance policy can provide them with the funds to help them do so. 

Even if you have enough money in savings or your spouse makes enough money on his or her own to cover your mortgage payments, life insurance is still a good idea if you have financial dependents or own a business. Not only can life insurance help your family make mortgage payments, it can also provide them with money to cover your funeral expenses, money to pay for college tuition(s), money to pay business taxes and money to fund a buy-sell agreement. 

What type of Life Insurance Should You Get?

There are two common types of life insurance available: term life and permanent life.

Term life insurance covers you for a specific "term," which can be anywhere from one to 30 years. This means that if you die during the term of your policy, your insurance provider will pay out a death benefit to your beneficiaries.

Permanent life insurance covers you for your entire life, so even if you buy a policy at 30 and die at 90, your insurance provider will still pay out a death benefit to your beneficiaries. Permanent insurance also acts as an investment vehicle that accumulates cash over time.

Term policies tend to be more affordable than permanent policies because they don't cover you for your entire life.

Finding a Policy 

Even though you don't have to have life insurance with your mortgage, purchasing a policy could help protect your family's finances. To find a policy that meets your needs, call 800-966-7169 to speak with a licensed agent.

 

----------

Sources:

https://www.nerdwallet.com/blog/insurance/who-needs-life-insurance/
https://www.nerdwallet.com/blog/insurance/what-is-the-difference-between-term-whole-life-insurance/

*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected.

Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Related Information

Why Have a Life Insurance Policy?

Find out why it is important for you to have life insurance with these 7 simple reasons. Help protect your family from financial instability after you're gone.

Read More

No Dependents? You May Still Want to Get Life Insurance

You may not have any dependents, but you still should get life insurance. Here's how a policy can be beneficial for you.

Read More

Can You Have Two Life Insurance Policies?

Life insurance companies do not prohibit you from having multiple life insurance policies, so you can have two or even more.

Read More

How Long You Need Life Insurance Coverage

Buying life insurance requires making a number of decisions. One of the most important things to consider is how long you should get life insurance for.

Read More

Determining Your Life Insurance Needs

In order to determine your life insurance needs, you must first figure out how much money is needed to meet all future financial obligations.

Read More

Can I Purchase Life Insurance On A Parent Without Their Consent?

If you wish to purchase life insurance on one or both of your parents, you will need their consent to do so legally.

Read More

The Benefits of Joint Life Insurance

Under joint life insurance policies, you and your spouse can gain protection for an entire lifetime or for a specific term. Find the best plan for you.

Read More

A Guide to Who Should Get Life Insurance

Who should get life insurance? Use this simple guide to decide if it's time for you to purchase a policy. Get a quote today.

Read More

Who Needs Life Insurance?

If there are people who depend on you financially, it may be time to start thinking about buying life insurance.

Read More