Q: Does my home insurance also act as life insurance?
A house down the street burned down last month. Fortunately, the whole family got out okay, but this tragedy really got me thinking. If something like that were to happen to my house, and my husband or I were killed in the fire, would our home insurance provide compensation for the loss of income so that our kids would be okay financially?
A: Sadly, no. What you are seeking is life insurance, which is designed to protect the financial state of survivors and compensate them for the loss of income or the value that the deceased provided to the household. Homeowner's insurance is designed only to cover damage to property and protect homeowners against certain liabilities.
As parents, owning a life insurance policy is particularly important. Fortunately, you are asking these questions before you are in a situation where it is too late. There are different types of life insurance and they come with varying benefits and at varying costs, so you may want to speak with an independent agent in the Trusted Choice network who can help you understand your options and find a suitable policy.