Yes, Every Home Loan Needs Insurance. Here’s Why
Is buying home loan insurance really important? Read to know the pointers why a home loan insurance is important for you & your family with IIFL Finance!
Imagine......you availed a home loan of Rs 50 lacs......but there is no insurance for the same.What would be worse than facing any unforeseen disasters like earthquake, fire or theft? You can easily imagine what destruction these can cause. The unprecedented tragedies can create havoc in your life. Sorry ! But we need to discuss this. You need the mantra to proactively overcome these challenges. And, your mantra is Home Loan Insurance!
What is Home Loan Insurance?
As evident from the above, home loan insurance is a plan that helps your family in paying the outstanding loan liabilities. This provides mental relief to loan borrowers. Needless to say, home loan insurance is beneficial for both you and your home loan financier.
Eligibility
Different banks have different criteria for insurance. But the most common criterion is - Borrower's age to be minimum 18 years and maximum 50 years.
Factors Affecting Premium for Home Loan Insurance
There is an inverse relationship between your age and the amount of insurance premium you pay.
Older people have to pay a higher premium as compared to the younger ones. Again, if home loan amount and tenure increase, the premium also gets accelerated.
Another indispensable factor is - Medical history of the borrower. If someone suffered a heart attack in the past, his premium will become more as compared to the one who is in good health and has a clear medical record.
Home Loan Insurance Calculators
Choose Right Insurance
Though it totally depends on your choice, but it is recommended to opt for home loan insurance. After all, you can mitigate the impact of an unforeseen event and lessen the financial burden on your near & dear ones. Choosing the right insurance is not an uphill task. Just do a comparative analysis of few schemes, and you will easily figure out which insurance scheme is perfect for you.
Get your query answered - "Whether taking Home Loan is a wise decision or not?"
Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.
