Schwarz Insurance Blog

Today we're writing to you about an uncomfortable topic, but a very important one: life insurance.  It's likely that you already know that life insurance is a very important part of financial planning since it can help relieve your dependents of significant debt once you're gone.

But have you considered what kind of life insurance will be important to you once you become a homeowner? Buying a home is one of the biggest investments you'll ever make, and we're guessing you'll want to keep what you've worked so hard to in the family once you've passed.  Life insurance can help you ensure that happens.

Most people take out a mortgage when they buy a home.  What happens if you or your spouse dies and you can no longer make those mortgage payments? Something called a term life insurance policy could help relieve that stress and worry.  A term life insurance policy covers the policyholder for a specific amount of time, typically ranging anywhere from 10-30 years and increasing in five-year increments.  This type of insurance is popular with young, healthy people who are just starting out on their own - buying their first home and starting their families.  Plus, it's generally one of the most affordable life insurance policies, meaning that you'll be able to afford it while you pay off your mortgage.

Another option is a mortgage life insurance policy, which pays off your home mortgage in full if you die.  This may be a good option for homeowners who have a health condition that prevents them from qualifying for the less expensive term life insurance policy. However, generally speaking, mortgage life insurance is expensive and the payment is added directly to the cost of your monthly mortgage payment.  Another important point to consider is that this policy pays off only the mortgage - meaning your family will still need money to pay off any other debts you may have.

Buying life insurance is a big step, and finding the right policy for you and your family can be confusing.  Schwarz is here to help.  If you have any questions about your life insurance options, just pick up the phone and give us a call at 800.552.8942.