Yes, Every Home Loan Needs Insurance. Here’s Why

Apr 14, 2016 6:00 IST 1618 views

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.

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