Life Insurance can help you buy a home
Buying a home for the first time is exciting and daunting. It is a big decision both emotionally and financially. As you plan out your budget for your down payment, take this into consideration. Some life insurance policies allow you to borrow from the cash that you have accumulated with that policy. You are basically borrowing from yourself. Since a lender is not involved you can "pay yourself back" at your own pace. It is important to follow a payment schedule to avoid any unpaid interest fees being owed by your family at the time of your death.
If your life insurance policy has not accumulated any cash value yet, there is another potential source of funds. Your parents or grandparents may have taken out a policy on you when you were very young. If that cash value is accessible, it would be a great down payment.
After you purchase your new home, it is imperative for you to have insurance to cover the mortgage. Each year, more families lose their homes when the primary wage earner passes away than from all other sources (foreclosure, fire and other catastrophic events.) Providing a life insurance policy that suits your family’s needs will allow them to maintain their lifestyle after a sudden loss of income.
Buying your first home could be the biggest purchase of your life. Make sure you are considering all of your options for acquiring the down payment, and protect your investment after the sale with mortgage insurance. Learn more by speaking to a Life Insurance Specialist today.