Earlier I have written about the home loans insurance. But, this article don’t have any other specific details on the home loans and looks very basic material. So, I have planned to come up with some more details on the home loans insurance. In this article I will explain about the best way to get the insurance cover for your home loans and what are the rules involved in that. If you have any doubts please post it in the comments section.
Read: Learn About Home Loans
How to take home loans insurance?
There are two types of home loans insurance.
- In the first type (Insurance for total home loans amount):
- If Mr.X taken the home loans for Rs.1500000. Then he can take the term insurance for Rs.1500000. The cost for yearly premium for this amount would be Rs. 3790 and Rs.42870 for the single premium payment. HDFC offers this kind of insurance in the name of Term Assurance.
- In the second type (Insurance for outstanding home loans amount):
- Only single premium type is available. In the above example, Mr. X has to pay Rs. 27110 and there is big difference with the first type. In this type you can not pay the premium every year.
Which one to Choose?
In the above two types, which one would be good. It is always better take the insurance cover for the entire home loans amount. Because, in the second case family will get only the remaining amount, but in the first case if the policy holder dies at any time the family gets the entire Ra.15 lakhs.
First 45 days of taking the policy is very important. If the policy holder dies in normal way with in the first 45 days after taking the policy, his family will not get any amount from the insurance company. They will get money only if he dies in accident.
I hope this article will be useful for the readers. If you have any thoughts to say, please post it in the comments section. I would be happy to answer your queries.