Individuals always need home loan insurance cover because of high-interest rates and increasing real estate prices. In fact, the home loan EMIs are no longer self-effecting anymore. Many financial experts say that in case something bad happens to the breadwinner and the family will not be able to pay the EMIs, then the family can be evicted from the home. Financial advisers suggest that buy an insurance coverage against the home loan as growing real estate costs joined with a huge loan amount. This coverage is the best interest of the homeowner. Click here.
In the market, two options are available to cover an expensive home loan, one is by purchasing a basic term insurance policy and the other is a home loan protection plan. In many cases, financial planners often propose life insurance policy rather than home loan protection loan to shield the housing loan. Home loan protection plan generally sold with the housing loan and gives risk coverage equal to the loan amount. The coverage size falls with the decrease in loan amount. In case the breadwinner dies without paying all EMIs, then the insurance company in India would pay off the remaining balance to the respected bank or to the policyholder's family and the loan amount is settled. After settling this loan amount, policyholder's family can still make a huge amount of savings. Know more.
Earlier, life insurance policies are more expensive as compared to home loan protection plan. However, with the introduction of life insurance online, a home loan owner may end up purchasing a term plan much cheaper as compared to home loan protection plan. The major benefit of a life insurance policy is the term coverage remains same in a term policy at a time whereas, in the home loan protection plan, it keeps decreasing. During past years, in the case of persons opt for the conservative life insurance policy, then they were profited from low insurance premiums. Nowadays, buying a home has become an expensive affair. The majority of people seeking to purchase their biggest dream is being forced to buy with financial capital. Many home buyers are burdened with costly EMIs.
Do not forget that the financing company is also at higher risk because their flow of money will be impacted negatively in case the home loan borrower as well as his family is not able to pay off the loan amount. Home financiers recommend borrowers to purchase home loan insurance cover to inhibit this threatening condition. This insurance covers expensive loan liability and helps the borrower's family to repay the loan amount in case of borrower's death. Currently, insurance companies in India offer home loan insurance with few variations and give borrowers with added benefits. Read more.
Some policies also provide critical illness coverage at affordable premiums while some plans cover the house and its unique as well as expensive contents. Generally, these are single premium policies. Financial companies in India and banks tie up with some insurance service providers and combine home loan products with home loan insurance policies. In such cases, banks may try to recommend these insurance plans only of companies who they have paired up with. Visit site.