As a homeowner, it’s important to protect your family’s financial future in case something happens to you. That’s why life insurance
is an essential piece of your homeowners policy. A basic term life policy pays out in one lump sum if death occurs, which means your beneficiaries would receive whatever money was owed them (the face value) at once. If they were also beneficiaries on your mortgage or title deed—especially if they co-own with you—this could give them power over assets that are secured by debtors and creditors. The other option is permanent life insurance, which pays out (usually gradually) over time, providing your beneficiaries with financial stability for decades to come. This can be a good choice for parents who want to help their children pay off student loans or buy a home. Permanent life insurance can also provide income tax savings because it allows you to invest premiums while building up cash value, and any interest earned is tax-deferred until withdrawals begin later in life. In addition, certain policies allow owners to borrow against their cash values, which can be helpful if your business needs some extra capital right away.