A smart way to protect your family from foreclosure

(ARA) - The housing market has taken us on quite a ride over the last four years. And according to business guru Warren Buffett, it's not likely to show much improvement until sometime next year.

With foreclosures still making headlines countrywide, along with anemic home sales and new building starts, we all remain hopeful that President Barack Obama's stimulus package will eventually kick in, putting people back to work and families back into homes.

That's why now, more than ever, protecting yourself and your family with safe, secure investments like life insurance is critical.

Your home is probably your biggest investment. If something were to happen to you, could your family continue to make the mortgage payments and maintain the lifestyle you've always envisioned for them? Just the thought of not being there is likely unsettling, but you have to be prepared.

How much life insurance do you need to adequately protect your family against the unexpected?

Generally speaking, a person should have coverage equal to approximately five to 10 times his or her annual salary, depending on current and anticipated financial obligations and other family income. Check out the easy-to-use life insurance calculators available at SBLI's Web site, www.sbli.com to confirm your family's needs. And if you already have life insurance coverage, you should check out how many years your coverage will last based on your current monthly expenses using the calculator, "How long will my current life insurance proceeds last?" You may be surprised to find out your current coverage may not last as long as you had hoped.

Also, pay close attention to the outstanding balance on your mortgage. If you recently secured a new mortgage or refinanced an existing one, how many years does your new mortgage last? You should choose your life insurance protection accordingly. Good options as to types of insurance to consider include:

Guaranteed level premium term life insurance - Term life insurance policies provide a death benefit for a specified length of time, usually 10, 15, 20, 25 or 30 years, with premiums guaranteed to never increase over the term selected. Many people choose a term length to coincide with the length of their mortgage. Level premium term policies are generally quite affordable, as rates for these policies have come down substantially over the last five years.

Another viable option for people who may have more disposable income is whole life insurance. Unlike term insurance, whole life continues indefinitely as long as you continue to pay your premiums. In addition to the death benefit provided by the policy, it builds up a cash value which is generally tax deferred. Because of this additional "savings" component within the product, whole life policies are typically more expensive than term policies.

Many people find some combination of a fixed term product with an amount of whole life a good solution to their need for life insurance. We suggest you research online the difference between term vs. whole life, and or talk to a life insurance professional. The agents at SBLI can discuss the differences with you and provide you with a free quote at (888) GET-SBLI (888-438-7254).

Finally, don't forget to consider the financial strength and stability of the insurance company before making any life insurance purchase. Since you are buying into a long-term promise with the insurance company, you want to be sure the company will be around 20 or 30 years from now when your family may need them. Independent rating agencies such as A.M. Best evaluate a company's finances and claims-paying ability. Their Web site, www.ambest.com, is very helpful when assessing the strength of a company.

These are challenging times for all of us. But with adequate life insurance, your dream home doesn't have to become a nightmare for those left behind.

SBLI and The No Nonsense Life Insurance Company are registered trademarks of The Savings Bank Life Insurance Company of Massachusetts, which is no way affiliated with SBLI USA Mutual Life Insurance Company, Inc. NAIC # 70435. SBLI products may not be available in all states.

Courtesy of ARAcontent