Home Loan Insurance Benefits: The insurance company will collect the dues of the home loan on the death of the policy holder so that the roof remains on the family.
Home Loan Insurance: In the era of Kovid-19, lakhs of families have lost their loved ones. People have recognized the need for insurance. In the absence of the earning person in the family, the burden of big expenses and responsibilities increases simultaneously. This is the reason why financial planners recommend choosing an insurance cover based on responsibilities, rather than taking a life insurance or term plan based on income alone. It is also important to assess how much debt you have, which loans are issued in the responsibilities. The most common and biggest of these loans is often the home loan.
If the person taking the home loan dies, then the family will have to worry about depositing EMI every month. If the loan defaults, even a safe asset like home can be snatched from the family. A major part of the salary goes towards home loan and when there is no regular source of income, will the family get the money from your term plan to cover this home loan? This is where home loan insurance comes in handy.
What is Home Loan Insurance?
Under this plan, your insurance company will collect the home loan dues on the death of the policyholder so that the family is not burdened and the roof remains on their head. According to the SBI Life website, the policyholder is covered under this insurance till the repayment of the loan. The term of the policy will also end on the repayment of the loan amount.
For this insurance (Home Loan Insurance), most companies charge premium only once. That is, like other schemes, the premium will not have to be deposited every year. According to SBI Life, this premium amount can also be included in the loan while taking the loan. For example, if you are taking a home loan of Rs 50 lakh, the home buyer will have the option to take a total home loan of Rs 52 lakh by adding the premium amount of the home loan insurance. Along with the EMI of the home loan, the premium of this insurance can also be paid.
pay attention to these things
Keep in mind that home loan insurance is valid only for the home loan amount and not for your other loans. For that, you should take a term insurance with high cover. However, you can also take add-ons or riders on home loan insurance such as for critical illness, accidental death, unemployment etc.
Many times you may be told by bank officials that it is mandatory to take home loan insurance from where the home loan is taken. but it’s not like that. It is not necessary for you to take home loan insurance while taking a home loan. You can take the plan according to your need and take it from the company you want to take.
Tax savings
Tax deduction can also be claimed on premium of other insurance like this insurance.
Keep in mind that this is home loan insurance, not home insurance. In home insurance, your home and its belongings are insured against any calamity, fire etc. whereas, home loan insurance is like insurance of the policy holder.
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