If there is one thing we can be certain of is that one day we will no longer be on this earth. Mother Nature has made sure we have an expiration date and as much as we may not like to think about death, that doesn’t mean it won’t happen. Once we have responsibilities such as a family, owning real estate, or any assets for that matter, it is of utmost importance that our loved ones and our assets are protected.
When a property is purchased, the mortgage company requires you to purchase property insurance which is not optional. The mortgage company is protecting themselves against the worst scenario possible that could happen to the property. Because they have such a huge interest in the property (in lending the money to purchase the property), the mortgage company needs to make sure that their investment is safe.
The same is to be said with protecting your life’s interest. If you and/or your partner are considering purchasing a home, recently bought one, or have owned one for years, it is imperative to have life insurance. If not, you are putting your family’s livelihood at risk. Have you thought about how your family would pay the mortgage if you were no longer here?
Because there is such excitement of purchasing a home, this is not something that is often thought about. However, this is the best time to take care of such matters. Having these honest conversations shortly after moving into your new home is just as important as purchasing the home. At the same time, a will should be drafted because you do not want to put your family through a long and dreadful probate process. The pain of losing a loved one alone is a lot to bear. Additionally, planning these matters is much better when everyone is in good spirits and in good health.
Finally, to avoid confusion and to make sure that all documentation, accounts, and policies are accounted for, preparing a death box is essential. This “box” which could be in a digital file and/or actually stored in a safe box should include the following:
- Bank accounts
- Loans/Credit Cards
- Mortgages
- Will and Trust
- Life insurance policies
- Car Title & Insurance
- Home Title & Insurance
- CPA and Lawyer Information