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Home Loan Insurance

Are you planning to buy your first home? Get to know everything about home loan insurance, how to avail home loan protection, insurance premium etc. Read more<br>

John388
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Home Loan Insurance

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  1. Home Loan Insurance

  2. What is Home loan Insurance ? • A home loan insurance requires a lengthy commitment. Loan terms for homes can be as long as 25 to 30 years. We are all aware that there are no guarantee cards in life. Imagine a scenario where the person who makes the monthly or quarterly EMI payments passes away due to unforeseen circumstances. Therefore, the dependent family members are responsible for repaying the loan. The house or the collateral could be taken in the event that the loan is not returned and the instalments are not made on time

  3. How does Home Loan Insurance Work? The insurance for home loans is comparable to term insurance. You are protected by this insurance up until the time when you must repay the debt. The insurance period ends when the remaining loan balance is repaid. However, the family can use the loan insurance to pay off the outstanding balance of the home loan if the person making the loan payments passes away during the loan term. This prevents the bank from seizing the house or the other assets used as collateral. • Important for lenders too The goal of financial institutions is to avoid having any of their loans default. Their goal is to safeguard their loans in every circumstance to prevent the same from becoming a bad debt. • Payment of Premium The majority of home loan protection programmes allow for a single premium payment. The option for buyers to combine the premium payment with the overall loan amount is also available. • Riders and add-on benefits To improve their cover benefits, a few of house loan insurance companies also provide home loan insurance policies with optional rider plans. Home loan protection insurance can be combined with riders for critical or terminal illnesses, accidental deaths, unemployment, and disabilities.

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