How Life Insurance Can Help Your Loved Ones Keep Their Home
A life insurance policy is built to help provide financial protection to your family if you were to pass away. But have you considered factoring your mortgage for your family’s home into the coverage amount you may need? A life insurance policy could help keep your loved ones on their feet if you were to pass away, but keeping your home in the family and making sure they have a comfortable place to live and thrive is important.
Life Insurance and Your Mortgage
One of the best ways to factor your mortgage into your life insurance need is to talk with your insurance agent. They can work with you to determine the policy and coverage that can best fit your need and help your family stay current on or pay off your home’s mortgage if you were to pass away. You may want to include your policy’s beneficiary in the discussions, too, to help develop a strategy for paying the mortgage and other expenses that depend on your current income.
Life Insurance Options to Help Pay a Mortgage
Instead of a one-size-fits-all life insurance policy, American Family Life Insurance Company offers policies that can be designed specifically to meet your family’s needs. Here are some of your options:
Term life insurance policies
A term life insurance policy is active for a specific amount of time and typically offers a larger amount of coverage at a lower price than a permanent policy. This type of policy doesn’t accumulate cash value and only pays out if the insured passes away while the policy is in effect.
If your specific goal is to make sure your family will be able to pay off your mortgage if you pass away, a term life insurance policy might be for you. And don’t worry — even if you change your mind down the road and want to convert your term policy into a permanent policy, like a whole life policy such as DreamSecure Whole Life Insurance, you may be able to do that (subject to policy provisions). We know your life insurance needs can change over time, and we’re always here to help you meet them.
Flexible life insurance policies
Another type of life insurance offered by American Family Life Insurance Company is DreamSecure Flexible Life Insurance. DreamSecure Flexible offers long-term, flexible coverage that can change as your life evolves. As an adjustable life insurance policy, it gives you the ability to reduce the amount of coverage or premium paid over time, which can resemble your mortgage balance being paid down. You may also be able to increase your coverage amount if you move into a bigger house with a larger mortgage balance, but coverage increases are subject to underwriting requirements. This type of policy also accumulates cash value.
Whole life insurance policies
A whole life insurance policy is just what it sounds like. Rather than only covering a set number of years, it covers you for your entire life. It also has living benefits like cash value accumulation.
American Family Life Insurance Company offers many types of life insurance policies. Talk to your agent about customizing a policy or a combination of policies today and getting the peace of mind you deserve.
Why Should I Get Life Insurance Now?
You might be wondering if it’s even worth getting a life insurance policy now — and why buy a policy if you’re young and healthy? Actually, there are lots of reasons why. Here are a few:
You may be able to get a better price
Getting life insurance early in life can be advantageous, since premiums are based, in part, on your age. Purchasing life insurance at a young age likely means lower premiums.
Relying on the life insurance provided through your employer might not be enough
Your employer might provide you with a life insurance benefit, but oftentimes, that coverage isn’t adequate for your family to support themselves if you were to pass away. And if you change or lose a job, you may not be able to take that coverage with you. Adding extra coverage that can help set your family up for success is the right thing to do — and it could be affordable.
Recent life changes
If you’ve recently gotten married, had a child or have passed any other life milestones, you’ve become more important to your family than you realize. Your beneficiaries depend on you for emotional and financial support, and you can provide the latter even if you pass away by getting a life insurance policy.
Review Your Life Insurance Coverage
If you know you have a life insurance policy already and think you’re all set, consider this — if you’re not in the exact same familial, employment or living situation that you were when you got your policy, your needs may have changed. Schedule a personal insurance review with your agent on a regular basis and they’ll help you perform a needs analysis. Your agent is a great resource to answer any questions and help you customize coverage to fit your needs. They may also be able to help you find gaps in your life insurance coverage or new ways to save on your other insurance policies.*
Help Financially Protect Those Who Matter Most Today
Your home is worth protecting — that’s why you have homeowners insurance in the first place. But life insurance can help make sure your house stays in your family by providing a death benefit that can help pay off your mortgage or make monthly payments, if you were to pass away. Get in touch with your American Family agent to get the life insurance policy that best fits your needs.
* Discounts may vary by state and company underwriting the auto or homeowners policy. Discounts may not apply to all coverages on an auto or homeowners policy. Discounts do not apply to the life policy.
This is a brief description of coverages and is subject to policy and/or rider terms and conditions which may vary by state. Fixed and guaranteed premiums are statements about the policy as determined at issue, and any changes made to a policy may affect the premium and are subject to our underwriting rules. The words lifetime, lifelong and permanent are subject to policy terms and conditions. DreamSecure Whole Life and DreamSecure Flexible Life Insurance policies mature at age 121. Please check with an American Family agent for details on coverages and restrictions.
Policy Forms: ICC18-33 (10), ICC18-33 (15), ICC18-34 (20), ICC18-35 (30), L-33 (10)(ND), L-33 (15)(ND), L-34 (20)(ND), L-35 (30)(ND), L-33 (10)(SD), L-33 (15)(SD), L-34 (20)(SD), L-35 (30)(SD), ICC18-36 (10), ICC18-36 (15), ICC18-36 (20), ICC18-36 (30), L-36 (10)(ND), L-36 (15)(ND), L-36 (20)(ND), L-36 (30)(ND), L-36 (10)(SD), L-36 (15)(SD), L-36 (20)(SD), L-36 (30)(SD), ICC19-97 UL, L-97 UL (ND), L-97 UL (SD), ICC17-225 WL, L-225 (ND) WL, L-225 WL, ICC17-226 WL, L-226 (ND) WL, L-226 WL, ICC17-227 WL, L-227 (ND) WL, L-227 WL, ICC17-223 WL, L-223 (ND) WL, L-223 WL, ICC17-224 WL, L-224 (ND) WL, L-224 WL, ICC17-228 WL, L-228 (ND) WL, L-228 WL