Home loan insurance benefits: If you have taken a home loan, and if due to some reason you die before repayment. So home loan insurance can be very helpful for your family in this situation. Know complete information…
It is not easy for people belonging to middle class families to buy their own house. It takes a lot of capital to buy a house which many people are able to save with great difficulty in their life.
This is the reason why people like the option of taking home loan from the bank because through this their needs are also fulfilled and they easily repay the amount taken as loan in installments. But taking a loan is easy, but repaying it is a huge burden and the burden of home loan remains on the head for a long time.
Just imagine, if the person taking the loan dies due to an accident, then who will pay the loan amount? In such a situation, banks collect the loan amount from the family members and if the family members are unable to repay the loan, they may have to lose the house or property on which the loan has been taken. But in this situation home loan insurance can be helpful for you. Know how he supports you like a true friend in difficult times.
What is Home Loan Insurance:
Home loan insurance is a protection plan for your loan. When you go for a home loan, every bank offers you home loan insurance. If the borrower dies, the remaining installment is deposited through this insurance and your house remains safe. With this, there is no worry of loan default because this responsibility goes on the insurance company. In such a situation, the home loan granting bank cannot assert its rights over that house.
Very important for family safety:
Be it the Reserve Bank of India or the insurance regulator IRDAI, there is no guideline mandating the purchase of home loan insurance. But this is necessary to keep the family safe. This is the reason why many banks or finance providers have started telling the amount of such insurance to the customers only after adding it to the loan. However, the decision to take it or not entirely depends on the loan taker.
EMI option:
The premium for home loan insurance is 2 to 3 percent of the total loan amount. If you want, you can deposit the insurance money in lump sum while taking a home loan, or you can also make EMI of the insurance money. In such a situation, just as your home loan EMI is deducted, in the same way the monthly installment of your home loan insurance will also be deducted. The amount of insurance is nominal.
Benefit is not available in these situations:
In some special situations you do not get the benefit of home loan insurance. If you are taking insurance cover for your loan, then you should know about it like – if you shift the home loan to someone else’s name or close it prematurely, then the insurance cover gets terminated.
Apart from this, cases of natural death or suicide also do not come under the purview of Home Loan Protection Plan. But if you transfer the loan to another bank, make pre-payment or restructure it, there is no impact on home loan insurance.
