Loans By Kathy: Every Household Should Have a Budget - Life Insurance

Every Household Should Have a Budget - Life Insurance

 

Every household should have a budget and continues to address all of the specifics of household finances.  The next area that we need to discuss is life insurance policies.

Let me first say, I AM NOT LICENSED TO SELL INSURANCE!  I am sharing with you some information I learned from one of trusted referral partners.  Please remember, every household may have different needs so you should speak with a trusted insurance professional for your specific situation.

The question I asked was, "If someone owns a home, what are some guidelines on how much life insurance should they have?"  He made a valid point. If you own a home, you should carry enough life insurance to pay off the mortgage.  Paying off the mortgage takes the pressure off your family as making that payment.  It also will give those left behind time to make disposition decisions in their time after they have had a chance to grieve the loss of their loved one.

So let's look at a scenario.  Let's say a married couple with 2 children have a $200,000 mortgage on their home.  Both were working and they used both incomes to qualify.  If one spouse dies, the other will struggle to make that mortgage payment.  If the life insurance pays off the mortgage, living on the single income may be a less stressful resolution for their new situation.

Make sure you have a plan to protect your family.

Here are other blogs in this series:

Every Household Should Have a Budget - Getting Started

Every Household Should Have a Budget - Step 2

Every Household Should Have a Budget - Savings

Every Household Should Have a Budget - Checking Account

 

 

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Kathy Sheehan Senior Loan Officer

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770.634.4021

F:

404.745.8060

 

Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

800.BAY.3703 Bay Equity LLC NMLS ID#76988


 

 

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The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.

 

Comment balloon 3 commentsKathy Sheehan • August 23 2013 03:28PM

Comments

Kathy, excellent point and the people I know who have had a death in the family were so very grateful for the life insurance, it made a huge difference in their financial well being.

Posted by Nick T Pappas, Madison & Huntsville Alabama Real Estate Resource (Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Huntsville AL) almost 5 years ago

Nick, the best thing is gives them time to make decisions without being forced to make decisions at a difficult time.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 5 years ago

More information on other types of insurance will follow.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 5 years ago

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