You’ve Considered Downsizing
Less space can mean more money, freedom and safety.
See why empty nesters, retirees and active adults alike have found that as they get older, downsizing can be a smart move.
Downsizing could significantly reduce your monthly payments. For example:
$300,000 mortgage = $1,871 monthly payment1
Mortgage: Annual savings of $5,616
$225,000 mortgage = $1,403 monthly payment1
2,000 sq. ft. = $174 monthly payment2
Utilities: Annual savings of $528
1,000 sq. ft. = $130 monthly payment2
$300,000 = $250 monthly payment
Maintenance and Upkeep: Annual savings of $756
1-3% annually of your home’s purchase price3
$225,000 = $187 monthly payment
TOTAL ANNUAL SAVINGS OF $6,900
While you’re considering downsizing options, it’s also a great time to re-evaluate your life insurance needs. You may find that your current coverage may be expiring or that you may not have enough coverage.
USE SAVINGS ON LIFE INSURANCE
Savings from downsizing can be used to purchase life insurance to help protect a spouse or other loved ones. For example, a 10-year $150,000 Term policy for a 55-year-old is:
Male: $30.95 monthly4
Female: $25.89 monthly4
The right amount of life insurance can help ensure that the loved ones who depend on you are financially protected – no matter the size of your home.
1 Rate generated from FHA Mortgage Calculator assuming a 30-year mortgage, with 20% down payment, 1.25% taxes and .35% homeowners insurance expense on May 30, 2018.
2 2015 Residential Energy Consumption Survey (RECS), U.S. Energy Information Administration, 2018.
3 How to Budget for Home Maintenance Costs, HGTV, 2018.
4 Sample monthly premiums for 10-year Term Life insurance with benefit amounts shown for a Female and Male at age shown. Rates are Premier Select and are guaranteed to remain level for the 10-year period. Monthly premium rates are available via EFT (electronic funds transfer). Actual premiums can only be determined by a full application and underwriting process, including some medical testing at our expense. Depending on your exact age and health, your actual rates may be higher or lower. Standard form numbers ICC15 FGCLT01-01 in most states. Not all plans are available in all durations and at all ages. Some features may not be available in all states.
When planning your future living arrangements, you should also take the time to re-evaluate your life insurance needs. Learn why it’s important to have coverage even after your children leave your home.
ALIC51519 (exp. 10/20)