Why do I need life insurance when I buy a house?

Buying a new home or investing in property is a big financial step in the life of the average Australian family. And if you are taking out a mortgage to finance the purchase, it is important to know that your family will be able to continue to make those mortgage repayments should you suddenly pass away or not be able to work due to illness or injury.

Although life insurance is not compulsory when buying a house, you should take into account your own particular circumstances when considering the importance of having life insurance.

Ask yourself the following:

  • How would you pay the mortgage repayments if you became ill or pass away?
  • Do you rely on one income to meet the repayments?
  • Do you know what other kind of cover you may have, for example what cover does your Superannuation include?
  • Would your family be able to stay in the home and be financially comfortable if you could no longer provide for them?

Consider the risk to you and your family’s future if you don’t have life insurance. Is it worth the risk of losing your house or your family becoming homeless?  The main reason for having life insurance is to insure that your mortgage would be paid off in the event of your death, and although not compulsory, it could be one of the most important decisions you will ever make.

If you are buying a new house, Hunter Lending Solutions can assist and advise on your insurance requirements.  Contact us today for a confidential chat.