Protect the home in the context of your family.

Know what kind of insurance you are looking at

Mortgage insurance, such as private mortgage insurance (PMI), generally protects the lender if you do not repay the loan. It is not the same as life insurance for your family.

Check the actual product and policy. A charge on your mortgage statement does not by itself tell you that your family has a life insurance death benefit.

Choose how to count housing costs

For a rough needs worksheet, you might count a mortgage payoff as a one-time goal, or count housing payments as part of monthly support. Do not count the same mortgage cost both ways.

Also consider property taxes, insurance, utilities, repairs, and other living costs. Paying off a loan would not remove every cost of living in the home.

Questions to bring to a review

• How many years of household support should we discuss?
• What existing coverage could help with housing costs?
• When does that coverage end, and can its price change?
• Who receives the benefit under the policy we are discussing?
• What premium fits alongside the mortgage and other bills?

Take the next small step

Gather your approximate mortgage balance, monthly housing costs, and current coverage information. Use the family needs worksheet to try an estimate, then discuss the assumptions with Timmy.

If you already own a policy, start with the existing-policy checkup. A new home is a reason to review the plan, not an automatic reason to replace it.