I currently provide a great deal of the household income for my partner and I. Additionally, I have borrowed money from my parents that they will be relying on in their retirement years. If anything should happen to me I want to be sure my parents are repaid and my SO is cared for. Can life insurance be this safety net?
Some backstory: My SO and I are in the process of buying a home which will put us into massive debt (we live in the Bay Area). I am the primary income earner, and while my SO has a great career, it brings in 1/2 my income and does not have the same earning potential over time that my industry does. Should anything happen to me there is no way my SO could make the monthly mortgage payments on the home. To make matters a little more stressful, the down payment has been provided by my parents, who are looking for a way to simultaneously invest their money and to help us out. The loan is something both my SO and I will be responsible for, however we do not have anything in writing with my parents. Any written loan would be negated through the jumbo loan process - we have to sign something saying the money provided to us is not a loan, but a gift, in order to qualify.
My concern is that if something happens to me, my SO would not only not be able to make the payments, he might not pay back my parents, who are depending on this income 10 years from now. How do I protect them all? Could life insurance be the key? If so, should both my SO and my parents be joint beneficiaries? And which is better for my family - term or whole life insurance policy?
Submitted August 05, 2017 at 03:36AM by SensibleCitzen http://ift.tt/2wgnlmr
