Let’s say you just purchased a new house and you want to make sure that when you die, that house goes to the family – not to the bank. Let’s further say your mortgage is $300,000 for 30 years and your mortgage payment is $2000/month. (These are all numbers used for illustrative purposes only, but are pretty realistic for a healthy 60 year old male non-smoker) Based on your age, you can get a 30 year term loan and the price is $831 a month – more than is practical for you to spend. What do you do?
One solution is what I call a Home Equity Protection Policy. The last thing you want when that time comes is for the payments to fall behind and for the bank to take possession of the home or for the grieving family to have to rush to accept some low ball offer. A Home Equity Protection Policy will not allow that to happen. It will provide funds to allow time to make the best decision about the future of the house. You see, the bank does not need to be immediately paid off – the bank just wants its monthly mortgage payment. A Home Equity Protection Policy would provide a set number of months of mortgage payments to the family to give them time and relieve the stress of the situation.
In our example, you could give the family a year’s worth of mortgage payments (12 payments of $2000 = $24000) for less than $100/month. That is whole life insurance. The price never goes up. The coverage never goes down (as long as you continue to make the payments.) This includes living benefits if you need to access the cash value to take care of your chronic illness, critical illness, or terminal illness. The money does not go to the bank – it goes to the family for them to spend as needed. You could even add the cost of a funeral – say $10,000 – and your payment for the total of $34,000 of whole life insurance would be about $138/month. This would protect the equity in your home, be of great help to your family, and give you peace of mind.
Could this be the solution to your situation?
Let’s talk. You can make an appointment or contact me and I will call or text you. I am here to help you.