Home loan insurance is a type of insurance in which the insurance provider settles the pending housing loan with the lender in the event of an unexpected event. Mortgage loan insurance and home loan protection plans are other terms for home loan insurance. So let me explain why home loan insurance is necessary. Read on for an explanation and a list of the benefits of home loan insurance.
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What is the benefit of home loan insurance?
Availing a home loan insurance has several benefits like-
Protects one’s investment against any unforeseen event like death, accident, and more
In most home loan insurances you have to pay the premium only once. Lenders provide the option of adding the premium to the home loan and by this method, the premium gets deducted along with the EMI
You can enjoy tax benefits under 80 C if you avail home loan insurance. However, if you add a premium to your loan and pay it through EMIs, you can’t enjoy the tax benefit
A single home loan insurance covers all the borrowers in a joint loan
Add-ons can be included in home loan insurance for extra coverage at an additional cost. This additional coverage strengthens the policy and covers against illness, any medical condition, accident or more
Home loan insurance also protects the family of the policyholder from the burden of loan payment.
These are some of the reasons for buying home loan insurance. As said, prevention is better than cure. I am sure a person able to buy a home can buy home loan insurance as well. After knowing the importance of home loan insurance, I myself bought it and will suggest that every one of you do the same. Be prepared for all calamities beforehand.
I hope this answers why home loan insurance is important.
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Authors Of The Question
Why Home Loan Insurance?
Swikriti
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1 Answers
1 Year
2023-02-28T15:09:17+00:00 2023-02-28T15:25:00+00:00Comment
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