Buying your first home is a milestone—an exciting mix of independence, financial commitment, and long-term planning. But for many first-time buyers, one critical step is often overlooked: buying life insurance.

Despite the fact that a home is usually the biggest purchase of a lifetime, only 15% to 30% of homebuyers take out life insurance when they get a mortgage. Here’s why that number is so low—and why it’s a mistake, especially for first-time buyers with dependents or partners.

Why Don’t More Homebuyers Get Life Insurance?

1. It’s Not Required

   Unlike homeowners insurance or property taxes, life insurance isn’t mandatory to close a loan. If it were, more people would have it.

2. It’s Not Top of Mind

   Most buyers are overwhelmed with logistics—interest rates, closing costs, inspections. Life insurance feels like a “later” decision.

3. Confusion Between Insurance Types

   Some buyers think mortgage protection insurance (MPI) is the same as term life insurance. It’s not. MPI pays the lender. Life insurance pays your family—a key difference.

4. Assumption of Invincibility

   First-time buyers are often younger. Many think: “I’m healthy. I don’t need this.” But life insurance is cheapest when you’re young and healthy.

Why It Matters—Especially for First-Time Buyers

1. Protects Your Home—and Your Family

   If something were to happen to you, would your partner, spouse, or children be able to cover the mortgage? A term life policy can pay off the loan or provide enough cushion to stay in the home.

2. Creates Financial Stability

   Losing a breadwinner is hard enough. Life insurance prevents a tragedy from becoming a financial crisis.

3. Covers More Than Just the Mortgage

   Term life insurance doesn’t just pay the lender—it can cover funeral costs, lost income, childcare, and future college tuition.

4. Gives You Leverage and Peace of Mind

   Want to borrow against your home in the future? Life insurance adds confidence for your partner or co-signer to take that leap with you.

How to Do It Right

• Start with term life equal to the mortgage amount and length (e.g., $600K over 30 years).
• Compare policies online or talk to a trusted broker—not the bank selling MPI.
• Bundle with other financial planning, like emergency savings and disability insurance.

Final Thought

Buying your first home is an act of optimism—and responsibility. Life insurance is a simple, affordable way to protect that investment and the people who depend on you.

If you can qualify for a 30-year mortgage, you can qualify for life insurance. And it’s probably the smartest financial move you haven’t made yet.

Want help understanding how much life insurance you need as a first-time buyer? Reach out—we’re happy to walk you through it.