Secure Your Home Loan with Term Insurance
- Guaranteed Benefits
- Fixed Life Cover
- Affordable Premiums
To make the dream of building a house into a reality takes a lot of planning. Many individuals opt for a home loan and pay the EMIs using their salaries. But, in case something happens to them and the family income is lost, their family might not be able to pay for the home loan, and in return, the lender of the loan may procure the property.
Considering this, you can either buy a term plan with a higher coverage so that your family can pay the home loan using the sum assured and keep the rest for their survival or you can link your term insurance policy with your home loan where a part of the premium paid goes towards paying the EMI of the loan. Thus, as the policy continues, the loan keeps on decreasing.
Whether you're scared to burden your family with debt repayment or you're the sole earning member of your family, buying a term plan makes complete sense. Your family may not be able to pay the EMIs after your demise, resulting in the lender repossessing the property. This is where a term plan can help you. While you pay your premiums for your term plan, these premiums will keep on decreasing your loan. And, at the end of the policy, your loan will be paid off. Your nominees will receive the sum assured minus the loan amount.
Safeguarding the family against any outstanding loans is the main objective of buying a home loan linked with term insurance. However, you must take into account your family's future needs and home loan amount while choosing a sufficient cover. It is always advisable to get coverage of up to 10 to 12 times extra of your annual income and the outstanding sum of the home loan. For instance, Bhanu is a 30-year-old man with an annual income of Rs. 8 lacs along with an outstanding loan of 40 lacs. In that case, the adequate life cover should be 1.5 Crore (8 Lacs x 10 = 80 Lacs + 40 Lacs).
Term plans hold a cheaper premium compared to other insurance plans, making them a popular choice among policy buyers. Though loan providers offer home loan protection policies, most policyholders prefer to opt for a term plan instead due to its many benefits over a home loan protection plan.
Here, we've listed the benefits of term insurance for home loans.
Many of us are unaware of the benefits of opting for term insurance for housing loans. By doing so, you can secure the dream of owning your house. By getting term insurance linked with a home loan, you can protect your home loan EMIs as well as safeguard your family – all of this can be done under a term plan.
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Sahil is a passionate content writer with over two years of expertise in the insurance domain. He uses his knowledge in the field to create engaging content that the customer can relate to and understand. His passion lies in simplifying insurance terminology, ensuring a hassle-free understanding for potential policyholders. With his outstanding collaborative efforts with people, he understands different perspectives and keeps readers' viewpoints at the forefront of his content writing approach.
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