Owning property is the goal of many Canadians. Homeownership provides a certain level of security for you and your family and the opportunity to put down roots in a safe, community-oriented neighborhood where you can build a future. Protecting your investment and loved ones with a life insurance policy is a critical piece of the picture. Here are three reasons why.
Paying the mortgage
With a good life insurance policy, your spouse should be able to continue making mortgage payments to the bank. Having sufficient funds available will also provide some flexibility if the term of the mortgage is coming to an end and a new rate needs to be negotiated. Over time, lending rates change and you cannot be assured of contracting for the same rate next time.
Regular bills
As you know, there are other regular expenses associated with keeping the family home intact that the surviving partner must take care of. These include property taxes and utilities. It is important to remember that, unlike your monthly mortgage payments that remain unchanged during the term of the loan, these bills are subject to fluctuation often on an annual basis.
Irregular expenses
Owning a house comes with a host of irregular expenses. This covers anything from property maintenance and lawn care to appliance replacement and emergency repairs. Perhaps you have shown some foresight and have budgeted the recommended 1% to 5% of the value of your house to take care of these costs. A life insurance policy will ensure that your spouse can continue to save for these eventualities. In addition, it will help cover professional fees for work that you may have taken care of yourself.
In short, life insurance is often necessary to support the ability of your loved ones to stay in the family home. It will assist them to carry on paying for both the predictable and unexpected expenses and weather cost of living increases. If you are looking for a good life insurance agent in the Calgary area, I would be pleased to refer you to a few names that you can choose from.