Planning to Buy a Home

From house hunting to moving day, being a homeowner takes planning.

Home. A simple word that invokes warm thoughts of family birthdays, holiday meals and the pride of a place to call your own.

For all the memories to come - big events and little milestones - your family will rely on you financially to keep those moments possible and keep your home safe. That's why it's so important to have the right insurance and savings in place as part of your home-buying plan. With financial backup, your family would be more protected from financial risk and able to stay in the home, even if something were to happen to you.

Protect your payments so your house can always feel like home.

So many things will become new memories for you in your home - life insurance and an emergency savings account help protect them all. A little extra planning upfront is all it takes to get you on your way to making your house a home. Meet people who are taking control of their home ownership options.

 
First Time Homebuyers Experienced Homebuyers Downsizing
  • Anne and Stanley

    First-time home buyers

    Age: 27, 29

    Yearly household income: $70,000

    Staying out of debt Anne and Stanley want to do everything they can to make sure they will be able to afford to buy a house - and all of the expenses that come along with it - when the time is right. They've made a budget and understand the cost differences between renting and buying. So when looking into the best way to save for their future, they chose a money market account because it involves no risk, gives them immediate, penalty-free access to their cash and still earn interest.

    Preparing for the future As Anne and Stanley move closer to a place they can call their own, they are realizing they'll need both their incomes to afford a mortgage. What if one of them passes away unexpectedly? So when looking into the best way to save for their future, they chose a money market account because it involves no risk, gives them immediate, penalty-free access to their cash and still earns interest.

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  • Matt and Leslie

    Experienced homebuyers

    Age: 40, 38

    Yearly household income: $100,000

    Preparing for the future Leslie, Matt and their children are relocating to another state for Matt's job. They'll be living away from their families for the first time and starting over with a new mortgage. If one of them were to pass away, the other will need help paying the bills and taking care of the children. They've decided term life insurance solves their dilemma. Its added financial protection can provide money to cover the new housing expenses, child care costs or daily living expenses.

    Saving for the unexpected Leslie and Matt already have plans in place for retirement and their children's college education - but what if they need a new roof or air conditioner? That's why they've started an emergency fund using a savings account at their bank that they can access anytime without penalties. They've set a goal to cover six months of expenses. Now they add to the account each month and watch it grow. They've gained peace of mind knowing they have money on hand should their house - or anything else - have an unforeseen expense.

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  • Albert and Lisa

    Nearing retirement and ready to downsize

    Age: 63, 58

    Yearly household income: $75,000

    Working toward a comfortable retirement Lisa and Albert's children have all moved out. In fact, the couple just became grandparents for the first time. So with just the two of them living in their house, they've decided the time is right to downsize. They're using the equity in their home to purchase a more manageable condo with a smaller mortgage. The lower payments will give them extra money to use toward retirement, paying off credit card bills and even opening a 529 college savings plan for their grandchild.

Here are some things to consider in this stage of your life.

Buying a home can be an expensive and confusing time in your life. By learning about your options, you can create a plan and help to secure your financial future.

  • Contribute to savings with mutual funds
  • Explore IRA options
  • Protect family with life insurance
  • What's your game plan for your savings goals?

    A car. Your first home. Your child's college education. Whether it's a purchase in the short term or a dream many years down the road, today is always the right time to start saving. Is your savings strategy on the right path?

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  • Planning for the big things in life sometimes necessitates higher returns than what a traditional savings account can provide. If you're willing to take on some risk to grow your savings, mutual funds can help put your goals within reach.

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  • Why choose a mutual fund

    1. 1. Gives you the confidence of knowing that your investments are being professionally managed.
    2. 2. Offers a convenient and low cost way to invest in the market.
    3. 3. Provides options for short or long-term savings goals based on your time horizon and risk tolerance.

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  • Mutual funds can be a good investment if you're looking for a savings tool that matches your risk level and time horizon.

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  • Will your finances be ready for retirement when you are?

    Hard work deserves to be rewarded. Whether retirement is right around the corner or decades away, your money needs to get its job done too. What growth opportunities are you giving your savings?

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  • Your lifestyle may change during retirement, but you'll still have to cover expenses. An individual retirement account (IRA) may help provide the income you need to meet your goals.


    Target Retirement Income

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  • IRA fundamentals

    1. 1. A tax-advantaged way to save for retirement.
    2. 2. You can choose the investments in your account, like mutual funds, stocks or bonds, based on your risk tolerance.
    3. 3. Restrictions on withdrawal time frames encourage use as a retirement funding plan.

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  • Start now to get ahead

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  • What will happen to your family if something happens to you?

    You work hard to keep them safe and provide a home where memories are created. Yet the unthinkable could happen and your family could face life without you. Find out how you can make sure they'll be taken care of.

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  • Life insurance can't replace you, but it can help cover expenses left behind

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  • Protect your loved ones with life insurance

    1. 1. Determine how much financial coverage is needed to support your family.
    2. 2. Decide the length of time you want your family protected.
    3. 3. Consider what you can afford in monthly premiums to fund your policy.

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  • Small steps today can provide big help tomorrow

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Things To Think About

What financial documents are critical to help protect my family?
Don't wait until an emergency happens to start getting your affairs in order. Start with these key documents:

1. Will. If you have children, a will is an absolute must. If you and your spouse were both to pass away, this is the document that will say who you want to become their legal guardians. A lawyer can help you draw up your will. Once you have the will, take a look at it every few years and update it whenever there's a significant change in your life, like marriage or divorce, a new child or a change in your preferences.

2. Living Will. A living will can clearly explain to hospital staff what sort of medical treatment you want if you're terminally ill or can't communicate on your own. Say you had a life-threatening health problem and were rushed to the hospital. They may provide you with a form like this to fill out, but if you were unconscious you wouldn't be able to. It's really important to have this document ahead of time.

3. Durable Power of Attorney. This document makes the person named in it your "attorney-in-fact" and gives them permission to make specific legal and financial decisions in your place. Just like with a will, this is an incredibly important document.

4. Emergency Information Sheet. If something happens unexpectedly, this will give the information someone needs to contact your family, find your other key documents, and take care of the things that need to be taken care of. Include names, phone numbers, and addresses of your doctor and your hospital. Label the information sheets clearly.

9 Life Insurance Myths
Let us help you banish 9 myths about life insurance and give you facts that may change your perspective and give you information for protecting your loved ones.

Myth 1: I'm single, or married with no children, so I don't need life insurance.
Fact: Life insurance can help you cover your debts as well as help you provide for your loved ones in the event of death, even for those without children.

If you are in this group, you may carry debts that you prefer were taken care of rather than taken out of assets left to your loved ones. Still, others may use life insurance proceeds to help nieces, nephews, cousins or siblings achieve their financial goals. For a modest premium, life insurance can help to provide for those who are left behind.

Myth 2: I can't afford life insurance.
Fact: Term life insurance, which is life insurance purchased for a period of time, is very affordable for many people. For example, if you are a healthy, non-smoking, 35-year-old female who has a good family health history, you may be able to purchase a policy for less than an evening at the movie theater per month.

Myth 3: I'm a stay-at-home parent. I draw no income. I don't need life insurance.
Fact: If you're a stay-at-home parent, you may not provide an actual paycheck for the household, but you do provide services that would cost tens of thousands of dollars to replace. These include: the cost of day care, a chauffeur or taxi service, a cook and a home cleaning service to name a few. If you have an individual life insurance policy, this may help to ease the burden for the loved ones if you should pass away.

Myth 4: I have a life insurance policy through my job. If I take another job or get laid off, I can take the policy with me.
Fact: Typically, your group life insurance purchased through an employer isn't portable - meaning if you leave your job, you're probably also leaving your life insurance protection behind. However, if you own an individual life insurance policy purchased through an insurance agent or an Allstate personal financial representative, leaving your job will have no effect on your coverage.

Myth 5: My beneficiaries will have to pay income taxes on the proceeds from my life insurance policy.
Fact: Your life insurance death benefits are generally income tax-free; yet very few people know this. Speak with an Allstate personal financial representative to help you sort through the details. We're here to help you figure things out.

Myth 6: If I travel out of the country and something happens to me, I am not covered.
Fact: In the unlikely event you pass away while in a foreign country, the policy would most likely pay out to the beneficiaries. However, many life insurance policies exclude certain countries, such as those currently on the U.S. Department of State's Current Travel Warnings List; so it's important to review your life insurance policy prior to leaving the country.

Myth 7: If I get a term life insurance policy, I can't convert it to permanent or whole life insurance policies.
Fact: It is possible to convert a term life insurance policy into a permanent policy, depending on the policy purchased. However, individuals seeking to do so should expect an increase in premium. In addition, the conversion may have certain limitations or require renewals. Many people like to purchase term insurance, which tends to be less expensive, while they're younger because it may make obtaining a preferred premium easier when they attempt to convert later.

Myth 8: I don't need life insurance once my children are adults.
Fact: Life insurance can help achieve a goal of leaving an inheritance to children, other loved ones, or help relieve the burden of paying for final costs such as a funeral or final medical bills.

Myth 9: I have a comfortable savings, so I don't need life insurance.
Fact: It is easy to underestimate the amount of savings that is required in the event of death. Most Americans do not have enough in their personal savings to cover these expenses. If you don't have enough saved, it is possible your loved ones won't be able to pay off final expenses or be able to hold onto assets like a home.

When to Adjust Your Life Insurance Policy
A good rule of thumb is to recalculate your life insurance needs once a year, or more often if there's a major change in your life. Take another look at your policy when you buy or sell a home.
You should carefully consider the investment objectives, risks, charges and expenses of 529 college savings plans before purchasing or investing money. Additional information about these and other subjects can be found in the Plan Description. You may obtain copies of the Plan Description from your Allstate Personal Financial Representative. Please read the Plan Description carefully before purchasing or sending money.

Investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other benefits that are only available with an investment in the home state's plan.

Securities offered by Personal Financial Representatives through Allstate Financial Services, LLC (LSA Securities in LA and PA). Registered Broker-Dealer. Member FINRA, SIPC. Main Office: 2920 South 84th Street, Lincoln, NE 68506. (877) 525-5727.

Life insurance and fixed annuities issued by Allstate Life Insurance Company: Northbrook, IL; Lincoln Benefit Life Insurance Company: Lincoln, NE; and American Heritage Life Insurance Company: Jacksonville, FL. In New York, Allstate Life Insurance Company of New York: Hauppauge, NY.

Please note that Allstate Life Insurance Company or its agents and representatives cannot give legal or tax advice. The brief discussion of taxes on this page may not be complete or current. The laws and regulations are complex and subject to change. For complete details consult your attorney or tax advisor.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

You should carefully consider the investment objectives, risks, charges and expenses of mutual funds before purchasing shares or investing money. Additional information about these and other subjects can be found in the mutual fund prospectus. To obtain a prospectus, please contact your Allstate Personal Financial Representative. Please read the prospectus carefully before purchasing shares or sending money.

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