It took my wife and I two years to find the home.
Then came the packing, cleaning, purging, planning…did you turn on the utilities?
From the time you put a contract on a home to the day of closing, you want it. You’re ready. Then buyers remorse creeps in. What happens if something goes wrong? Can we afford it?
When closing day came, we felt relief bundled with excitement. Now it’s time to move, unpack, and start-in on several projects to make the house our home.
Part of the home buying process is purchasing insurance on your home. Possibly the least exciting part of the buying process…Next to the termite inspection. But if you’re getting a loan, the bank is going to require you to carry insurance. Needless to say, you’ll want something to protect your castle in the event that the unexpected happens.
Buying a home will put you in a frenzy of emotions. Excitement, nerves, thrill, anxiety, and so on. I imagine it is the largest purchase of your life?
What about you?
What are you doing to protect you?
There are a couple of elements to buying a home that every home buyer should carefully and thoughtfully consider. And yet no one talks about these details.
“A fullness of life involves having an answer for those darkest of times.”
–Wakefield Hare
Protecting Your Income
You’re finally settled-in to your new home. Boxes are unpacked. Decor is up.
What happens now if you can’t work and no longer bringing home a paycheck?
Can you survive on your significant other’s income alone to afford the monthly bills and new house payment?
How many months of savings do you have to get you by over the next 1, 2, 6 months?
50% of Americans couldn’t meet expenses after just 1 month without a paycheck.3
Disability insurance is designed to protect your paycheck. It should be called “income replacement insurance“.3 Typically a long-term disability policy will replace two-thirds of your income.
The younger you are, the less likely you think you may need it. I can relate…I’m young and healthy.
Without your income how would you afford to live in your home?
Wait, Where Are You?
In an instant the dynamics of a family can change. For the good and not so good.
Someone at home is depending on you. Counting on you for your help, guidance, companionship.
What if you were no longer in the picture? Would your family have to sell your home and move because they can no longer afford it?
This is a tough conversation. It doesn’t matter who you are.
In September 2016, LIMRA published a study on trends in life insurance ownership. In it, one of the challenges discussed is “families focusing on other financial priorities“. They go on to state “many overestimate the cost by as much as 300 percent.4“
Are you overestimating the cost of life insurance or do you have adequate coverage?
Next Step
Buying a house was easier than putting yourself in these situations. No one wants to think of the worst case, but you have an opportunity in front of you to protect your family’s financial future. Now is the time.
Find an independent insurance agent who is willing to listen to your needs and help you customize a plan to fit your lifestyle.
You put a lot of time and energy into buying your home. Now take some time to plan for your family’s future. You owe it to yourself.
References:
1. Picture One: Facts from LIMRA
2. New York Times – Looking Out for Yourself With Disability Insurance
3. Life Happens Disability Survey, conducted by Kelton Research, April 2012.
4. Picture Two: Facts from LIMRA
5. Nearly 5 Million More U.S. Households Have Life Insurance Coverage
