Home Loan Offers' Starts from 8.50%,
What Home Loan Insurance?The home loan insurance policy pays for your home loan debt in the event of death, critical illness, or permanent disability.
How is that different from a home insurance policy?A home insurance program, unlike home loan insurance, only protects you against damages to your property caused by an earthquake, fire, burglary, storm, etc. In your absence, it doesn't help your dependents pay the total outstanding amount of home loans.
Importance of having a policy on home loansIn case of any eventuality, we always discuss the well-being of our family members. It is for this somewhat reason that we make sure that we have sorted our finances and protected them even before eventuality hits. To purchase a house is, to many, a dream come true. Not Just an expenditure but an accomplishment emotionally. Having a home loan already in place is a great responsibility. If you're someone with a home loan and you're concerned about repaying it after you're gone, it's time you found about insurance policies for home loans.
Home Loan Insurance Unique features
- Some home loan insurance plans are one-time premium plans. However, few insurers allow you to make annual payments. In most situations, the insurance premium is included in your home loan and charged in your home loan installments.
- In the case of the insured's death, the applicant will pay a lump sum equal to the outstanding home loan, and the policy will discontinue.
- Many home loan insurance providers have no maturity value, as the plan's purpose is to cover the outstanding amount of the loan in the event of any event.
- Each year the Sum Assured continues to decrease as the outstanding home loan decreases.
- The term of the protection plan for home loans is equivalent to your tenure on home loans.
- Loan facilities are provided for insurance.
Key Notes for home loan insurance buying:Using a home loan insurance plan isn't compulsory. You may elect not to have one. Yes, you have the right to say no if your lender approves the home loan advisor asks to pick up a loan protection plan. But, consider the advantages of having a reasonable home loan insurance plan before making a decision.
Home loan insurance is important?The borrower has the right to foreclose the property and sell it away to collect the debt if a borrower passes away, and the dependents are unable to pay off the home loan. The lender, however, incurred massive charges of foreclosure to do so. If the borrower has active insurance for home loans, this helps the lender avoid bad obligations.
A home loan policy covers one's family and dependents from debt in case of any eventuality. The insurer must pay the outstanding amount of the home loan, and your loved ones are secure.
If you buy a home loan protection plan, you will be allowed to select add-on covers that will protect you from permanent disability, severe illnesses, and job loss. It covers you when the unfortunate event hits. If you have such add-ons, the outstanding amount of the loan will be paid not only in the case of the policyholder's death but also during the borrower's disability or critical illness.
Section 80C of the Income Tax Act specifies you can avail tax benefits for the death benefit you receive under the home loan insurance plan.