Buying your first home? 7 questions to ask your advisor

4 minutes

First home, first mortgage… first life insurance discussion. It may not be the most exciting topic, but it plays a key role in protecting what matters most and a conversation with an advisor can make all the difference. And asking the right questions will help you get there faster. Here are 7 questions to get you started.

1. How much life insurance coverage do I really need?

There is no one-size-fits-all solution. Your coverage should match your real-life situation. That's why getting advice tailored to you makes all the difference.

  • Would your partner be able to manage the mortgage and other household expenses on their own?
  • Would your debts become a burden on your loved ones?
  • What would happen to your children’s lifestyle? Do you want to leave something behind for them?

A number of factors will shape your coverage, such as:

  • How much you still owe on your mortgage
  • Your income
  • Your current and future family situation
  • Your debts (car loan, credit cards, lines of credit, etc.)
  • The expenses your loved ones would need to cover without you
  • How long you’ll need that protection in place

2. Should I choose term or permanent insurance?

Both options play a different role in your financial protection.

Term Life Insurance

For first-time homebuyers, term life insurance is the natural starting point. It covers you for a specific period—typically aligned with your mortgage.

Why it stands out:

  • Generally more affordable
  • Can be converted to permanent coverage later on
  • Ideal when your financial responsibilities are temporarily higher (like a mortgage or young children, etc.)

Permanent Life Insurance

Permanent life insurance comes at a higher cost, but it’s designed to support your long term financial goals.

What it offers:

  • Coverage that lasts your entire life
  • A guaranteed payout whenever death occurs
  • The ability to build cash value over time
  • Support for end-of-life expenses or leaving an inheritance

When you’re buying your first home, term life insurance is usually the starting point. Permanent coverage can complement it by helping with other needs, such as covering taxes and expenses at death or passing on an inheritance.

3. How long should your coverage last?

In most cases, your coverage should match your mortgage—when your financial responsibilities are at their peak. Got a 25-year loan? Think 25 years of coverage.

But life doesn’t always go as planned.  Your needs can shift if you:

  • Welcome a child
  • Go through a separation
  • Refinance or sell your home
  • Change careers
  • Your income change

The key is flexibility. Speak to your advisor about how your policy can adjust as your life evolves. And don’t forget to review your coverage regularly, especially at major life milestones.

4. Who should receive your life insurance benefit?

If something happens to you, who would receive the payout? Your partner? Your children? Your estate?

The decision matters when it comes to choosing a beneficiary—it can have real financial and legal consequences.

Good to know

Naming a person directly means the benefit is paid faster—and doesn’t go through your estate. That can make a difficult moment a little easier for your loved ones, especially when expenses still need to be covered.

If you have young children, additional planning is required, since they can’t receive the funds directly.

5. Life insurance vs. mortgage insurance: what's the difference?

Mortgage insurance is offered by your lender when you sign your loan. It only covers your mortgage balance and the lender—not your family—is the beneficiary. Premiums can increase at renewal. Coverage doesn’t transfer if you switch lenders.

Life insurance, on the other hand, is yours. It gives you more control and flexibility.

Why it stands out:

  • You choose the amount, beneficiary, and type of coverage.
  • It stays with you, even if you change lenders or move.
  • Premiums are stable and locked in for the duration.
  • It can adapt as your life evolves.

6. How much will it cost?

For many first-time homebuyers in good health, life insurance is often more affordable than expected.

Your premium will depend on several factors, including:

  • Your age
  • Your overall health
  • Whether you smoke
  • How long you need coverage
  • Amount of coverage you choose
  • Type of policy you select

The key is to find the right balance between solid protection and a budget that works for you—something your advisor can help you achieve by comparing different options.

7. What other coverage should you consider?

Life insurance protects against one risk: death. But what if you’re faced with something else—like a serious illness, an accident or the inability to work? Your financial obligations don’t stop.

That’s why it’s worth looking at complementary coverage, including:

Together, life, disability and critical illness insurance help you protect not just your mortgage, but the income that supports it. And when the unexpected happens, easing financial pressure can make all the difference.

At its core, buying a home is more than an investment—it’s a life milestone. And it deserves the right protection. Start the conversation with your advisor today.

FAQ

Is life insurance mandatory when buying a home?

No, but it can make a real difference for your loved ones. It may help them avoid selling the home or taking on a heavy financial burden.

When is the right time to get life insurance?

Get life insurance before or as you buy your home so you’re covered from day one of your mortgage. Waiting can mean higher costs as you get older.

Can I change my coverage later?

Yes, you can adjust key elements like your coverage amount, term and beneficiary as your situation evolves with guidance from your advisor.