Buying a house is a huge investment in your family’s future. And buying a home with a VA loan is a great way to finance the purchase. But once you commit to buying the house, you’ll need to invest in the right insurance to keep the house safe. Homeowners’ insurance is a requirement when buying a home with a VA loan. But is life insurance? Here’s what you need to know.
Life Insurance Isn’t Necessary
In most cases, the only type of insurance you’ll need for the property is a comprehensive homeowners’ insurance plan. This plan covers the structure, the property, and everything inside the house from damage. If anything happens to the home, you’ll be able to file a claim and get compensation to cover the damages. As long as you have this policy in place, you’re in compliance with the insurance requirements for VA loans. That means life insurance isn’t essential. That doesn’t mean it’s not something you should consider buying.
Life Insurance Protects Your Family
When buying a home with a VA loan, the payment you’re making is largely covered by your income. But what would happen if you passed away unexpectedly? Your family would need to come up with the mortgage payment each month on their own. That can put them under serious financial strain while they’re processing and coming to terms with your passing.
Finding a great life insurance policy helps ease the financial burden of your death. The distributions from the policy can be used to cover medical bills, final expenses, and even living expenses. That includes mortgage payments.
What Type of Policy Should You Choose?
Since life insurance isn’t a requirement when buying a home with a VA loan, you’re able to choose the type of policy that makes sense for you. Term-life coverage gives you protection for a set number of years. You can then renew the policy if it expires to extend coverage. Whole-life insurance protects you for your entire life as long as you pay the premium. You won’t have to worry about renewing your policy or leaving your family unprotected.
The best way to find good coverage is to talk to your insurance agent and discuss your options. They’ll be able to find a policy that works for your needs and your budget.
Find the Right Mortgage Today
If you’re thinking of buying a home with a VA loan, you need to choose a great lender. Apply online with Mortgage Solutions Financial today and find the financing you need fast.