Why New Homeowners Need a Financial Protection Plan
Buying a home is likely the largest financial commitment you will make. This checklist covers five protection areas every new homeowner should address within the first 90 days.
Life Insurance
- Term life coverage of at least 10× annual income
- Coverage for a spouse or partner who contributes income or childcare
- Benefits covering the mortgage and income replacement
- Current beneficiary designations
Mortgage Protection
Confirm your life insurance benefit exceeds the mortgage balanceConsider separate mortgage protection if neededUnderstand lender requirements
Disability Insurance
Short-term coverage for 3–6 months of incomeLong-term coverage for 60–70% of incomeReview employer-provided coverage
Emergency Fund
Keep 3–6 months of living expenses liquidKeep it separate from retirement accountsMake it accessible within 24–48 hours
Estate Planning
Create a will or trustSet powers of attorneyUpdate beneficiaries on every account and policy