Buying a home is a huge commitment. It’s a huge cost and, there are lots of responsibilities that go along with it. One of those responsibilities is often life insurance, and the option to buy mortgage life insurance. This type of life insurance will pay off the balance on your mortgage should you pass away. While it’s something to be considered and a good option for many, mortgage life insurance also leads to another matter that you should seriously consider when you buy a home. That’s making out your will.
No one wants to think about dying, or the separation of their goods among all of their relatives. But it’s something that everybody needs to do at some point and hopefully, sooner rather than later.
The first reason why it’s a good idea to make out a will when you buy a home is simply because they’re two huge landmarks in a person’s house. Doing them both at the same time can serve as a reminder to people; and ensure that now that they actually have something of worth in this world, it’s going to be taken care of properly when they’re gone.
Of course, the other huge reason why you should make out a will when you buy a home is because you’ll be able to specifically state what happens to your home after you’re gone. This may already be stated in your life insurance, but the terms within that policy might only include the actual estate – not the things within it, or certain aspects of the home that you may want to go to specific people, such as a chandelier that has sentimental value to someone else in the family, not the beneficiary.
Lastly, there are a lot of changes that occur once you become a homeowner. Relationships change, you may want different things to go to different people, and you’ll most likely want to know who’s going to get what after you’re gone. This will all come into play as you think about things such as second mortgages, home renovations, and all the other issues that come up with home ownership. It’s much easier to just call up your lawyer and make a few tweaks and changes rather than trying to figure it all out at the time you’re applying for your line of credit (and how much will be left in the value of your home for your loved ones after you take it out.)
There are lots of reasons to make out a will; but they all become especially apparent after you’ve purchased a home. Shortly after getting your mortgage and have unpacked all your boxes, make sure that preparing your will is the next thing on your to-do list. It will be just another layer of protection for the dream home you just purchased.