Dennis Philps

You have heard the expression: ‘Life is fragile. Handle with care’? It is a sobering expression that calls us to attention.

Recently I heard the story of a successful businessman who was just completing his new home and anticipated moving into it shortly with his family. Then the unforeseen happened. He was tragically killed by a drunk driver!

Unfortunately there was no insurance on the financing for the new home. His widow was left with the financing challenge of owning two houses and the responsibility of paying both sets of financing. This added burden only added to the stressful grief adjustments she had to make.

Therefore, it seems prudent that when you set a mortgage in place, you also take out a ‘term’ insurance policy for the same amount. Accordingly, should any one of the signatories on the policy be faced with the issues of the widow above, the mortgage amount would be covered and with the proceeds of the term insurance policy paid out. If nothing happens to the signatory[ies] and the mortgage gets paid out, the term insurance policy can then be safely cancelled.

To me, it seems most prudent to look ahead and prepare for anything that might happen given the fragility of life!