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What Would Your Income Need to Continue Providing?
Your income supports more than everyday bills. It may help pay for housing, food, transportation, childcare, education and other long-term family needs.
Life insurance may provide beneficiaries with funds they can use for needs such as:
- Mortgage or rent payments
- Everyday household expenses
- Childcare and dependent care
- Education expenses
- Outstanding financial obligations
- Final expenses
- Time away from work following a loss
- Other needs determined by the beneficiary
The appropriate amount and duration of coverage depend on your individual circumstances and financial responsibilities.
Life Insurance for Mortgage Protection
Mortgage protection generally refers to using life insurance to help provide funds that beneficiaries may use toward mortgage payments or other household needs following the insured person’s death.
The death benefit is paid according to the policy terms. Unless a particular arrangement provides otherwise, beneficiaries generally determine how the proceeds are used.
Life insurance used for mortgage protection is different from private mortgage insurance, commonly called PMI. PMI generally protects the mortgage lender—not the homeowner’s family—if the borrower defaults on the loan.
Understanding Available Coverage
Different life insurance products serve different needs.
Term life insurance generally provides coverage for a specified period and may be considered when protection is needed during working years, while children are dependent or while a mortgage remains outstanding.
Permanent life insurance is designed to remain in effect for the insured person’s lifetime if required premiums are paid and the policy remains in force. Certain permanent policies may also accumulate cash value, subject to policy terms, charges and performance.
Product features, premiums, guarantees, limitations and availability vary by insurer and policy.
Factors to Consider
When considering life insurance for family-income protection, it may be helpful to review:
- Current income and household expenses
- Mortgage and other outstanding obligations
- The number and ages of your dependents
- Childcare, education and caregiving needs
- Existing life insurance and employer-provided coverage
- Available savings and other financial resources
- How long financial support may be needed
- A premium that fits your long-term budget
Life changes such as marriage, the birth of a child, purchasing a home, changing employment or assuming caregiving responsibilities may also create a reason to review existing coverage.
How Tristate Can Help
A licensed independent insurance agent can help you identify your protection priorities, review existing coverage and explain available life insurance products from the carriers represented through Tristate Financial Network.
Our role is to help you understand available options so you can make a more informed decision. Applications remain subject to insurer underwriting, approval, product availability and policy terms.