There is no doubt that home purchases rank among the most important decisions taken by Indians today. It usually involves a home loan from bank that has to be paid back in monthly installments over a long period of time. In most scenarios, home loans are usually taken by husbands in the hope that they will complete all monthly installments during their lifetime. But what happens if something unfortunate happens to the husband? Will the wife be able to pay the remaining installments on her own?
This is where home loan insurance steps in. You can take an insurance policy to ensure your family doesn’t have to worry about paying up the remaining installments if something unfortunate happens to you.
Understanding the importance of life insurance while taking a housing loan
It takes 10, 15 or 20 years to make all principal payments for a home loan. Associating a life insurance with your housing loan is immensely beneficial. It will allow you to move ahead in life with lesser worries, especially since you know your family won’t be troubled regarding pending payments in the future.
Explore different protection insurance policies to arrive at the best one!
What is the amount that should be covered in the life insurance?
The insurance premium will depend solely on the loan amount. In most policies, the cover amount decreases just like the loan amount does with every passing year.
A lot of finance companies seek security against the home loans they provide. The security is mostly in the form of the house for which the loan is taken. A life insurance policy taken against a home loan can be used as security. Finance companies don’t mind accepting such policies as security because they know the proceeds go to them in case something happens to you.
In some cases, the home loan provider takes the insurance on your behalf. You will have to repay the amount to them – it gets added to the monthly installments you owe them.
What should you consider before buying home loan insurance?
These questions will help you take the perfect insurance policy:
- Does the insurance cover death or accident?
- Does the insurance provider have a tie-up with the home loan company?
- Does the life insurance come free with the home loan? If not, how much is the premium?
- What is the maximum amount and period covered under the insurance?
- What happens in the scenario where I pay up the entire home loan in advance?
Go ahead and buy insurance online that helps take care of your financial future. Get in touch with experts using the toll free numbers on the site to gain a better understanding of the policy you wish to take.
Note:This is a guest post.
10 Points about Wedding Insurance.
In India wedding is very big occasion which involves various things like glamour, romance, fulfillment of dream and finally involvement of lot of money. For this every Indian parent work hard, do saving and make the investment in various investment tools. By doing these activities they are raises the fund so that they can conduct lavish wedding of their child. But due to some reason if the marriage is cancelled or postponed. The very next thing which comes in the mind of parent is who will pay for the amount which is spended in arranging various marriage related activities. Usually the entire responsibilities go to bridegroom parent or bridge parent.
In order to prevent you from such unconditional situation where bridegroom parent or bridge parent will face financial loss. Money Dial suggests you to take wedding insurance. By taking the wedding insurance you are providing coverage to your marriage occasion.
More info @ https://www.moneydial.com/10-points-about-wedding-insurance/