How to buy Insurance Cover for your Home Loan?

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How to buy Insurance Cover for your Home Loan?

How to buy Insurance Cover for your Home Loan?  How to buy Insurance Cover for your Home Loan?

Home Loan Insurance is a plan that covers the outstanding loan liability of the borrower. When he dies due to accidental or natural death, his proceedings are held liable to pay the outstanding loan amount thereby decreasing the family burden.

These assurance policies offer a cover that gets decreased as the loan amount comes down every year. Most of these policies are offered with Home Loans by the lenders as they have tie-ups with insurance companies. Even you can buy the insurance plan independently as well.

Application Form: The application must be submitted either through the lender or the Insurance Portals to the insurance company.

Age and term: Usually the Insurance Companies offer a cover under the Home Finance Insurance to the age of 60-65 years. The insurance is offered for the tenure period of the loan.

Premium: The premium for the cover solely depends on the age and the medical record of the loan borrower, loan amount, and the tenure period.

The insurance premium can be a single payment or can be paid as regular payments that are bunched together with the loan EMI’s. How to buy Insurance Cover for your Home Loan?

Medical Checkups: Medical tests can be required depending upon the policies of the insurance companies. In some of the policies, the company makes the test mandatory for the borrowers above a certain age.

Points to Ponder:

  • If you are paying the premium in installments, it will increase the regular outflow of the cash due to EMI’s that are payable towards Home Loan.
  • In the case of a joint application, the premium gets doubled. In the case of the uneven depth of the joint applicant, the insurance firm will be bound to make good the loss. How to buy Insurance Cover for your Home Loan?

 

 

 

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