Home sweet home. If you’re like most American families, your home is both your largest asset and your largest financial responsibility.

Even if you have a healthy balance sheet and your assets could cover the outstanding mortgage balance in the event of catastrophe, here’s the ultimate question: Would you want your family to use up those assets to pay off the outstanding mortgage balance? For those that would not, what’s a low-cost solution?

Decreasing term life insurance is an affordable way to protect you from being over insured, yet at the same time ensure that a specific debt, e.g. a mortgage, will be paid off in the event of catastrophe. For example, if you have a 30-year mortgage, you can buy a decreasing term life insurance policy to match the coverage amount and length of the mortgage. Each year, both the insurance payout and the mortgage principal balance would decrease together.

So, what’s the case against decreasing term life insurance? It might not be enough, as it doesn’t factor in other needs your beneficiaries may have throughout their life – everything from the cost of a funeral to housing, raising children, college tuition, and other daily living expenses. While some expenses will probably drop over time, others may rise.

What’s the right amount of coverage for your family? Please feel free to reach out. We are
happy to discuss how to protect your beneficiaries and how much overall insurance you may need, if any.