In this article I will be writing about the insurance cover for the home loans. Don’t confuse with the home insurance and the home loans insurance. There is clear difference between home insurance and home loans insurance. Here I will be explaining the reason for the home loans insurance and why one has to choose the home loans insurance. After reading the article please post your comments. You can subscribe to our future articles here.
What is Home Loans Insurance?
How one can insure his house, in the same way you can buy insurance for your home loans. If you insure your home loans, if some thing happens to you, the burden of repaying the loan will be taken care by the insurance company. For example, If Mr.X is buying a house for Rs.150000, also he insures his home loans for that house. In case before completetion of the enitre loan amount he died. In that case remaining amount will be immediately disbursed to the bank by the insurance company.
If the loan is taken jointly, if any one borrower dies also the other need not repay the loan. Insurance compeny will repay the entire amount.
Premium for Home Loans Insurance
Premium for this cover will be vary depend on the applicant’s age,income and the capability to repay the loan. Usually, premium can be paid as a single payment or it can be added to the loan amount. The bank will factor this amount in the equal monthly instalment (EMI).
In this article I have written about the insurance for home loans. It is good to take home loans insurance if you would like to save your family after you. This insurance is not for every one, and can be utilized if the situation arise. Thank you for reading the article. If you have any doubts, please post it in the comments section. I am happy to answer all your questions.