If you own a home and somebody else depends on your income, consider that the leading cause of home foreclosures is not “adjustable rate mortgages”.
As cited many times over (including by a Harvard law professor), the answer is medical bills.
Even for the insured, medical expenses can dramatically impact a family’s finances and push it into bankruptcy.
Over one million families discovered that sad fact in 2004 and medical bills have not gotten any cheaper, says the Bureau of Labor Statistics.
Death is another major cause of foreclosure.
When a family’s primary wage-earner dies, the secondary wage-earner is now obligated to pay the family’s monthly obligations and that may include a mortgage payment. Sadly, that income may not be enough to cover the bills.
A strong life insurance policy can offset bills, ease transition periods, and even pay off the home’s remaining mortgage obligation.
Whether you’re a first-time buyer or a seasoned investor, consider protecting yourself and your family with adequate medical and life insurance coverage, as well as taking preventative health care steps.
There are resources online to help you determine what coverage is necessary, but the best place to start for this highly personal discussion is with your personal financial planner.
Life is a series of surprises and it’s never too soon to be prepared.