Home Loan Insurance: In today’s time, with the help of home loan, we can easily fulfill our dreams of owning a house. Do you know that you can secure your entire family with home loan insurance. This ensures that the home loan is being repaid on time even after you are gone. Let us know about home loan insurance in detail.
Buying your own house has become very difficult even in metro cities and small towns. Every person wants to have his own house. Home loan helps a lot in realizing this dream. Through this, if a person is unable to buy his own house due to lack of money, then he can also buy his own house through home loan.
As we all know that an accident never comes unplanned, so if you take a home loan, then you should take home loan insurance along with it. Home loan insurance is different from health insurance and family insurance. Home loan ensures that the loan is being repaid on time even after the death of the loan holder.
Many people in the country do not know about home loan insurance. Today we will tell you why we should take home loan insurance, what are its benefits?
Is it mandatory to take home loan insurance?
Home loan insurance has not yet been made mandatory in the country . It’s all as per wish. Many companies provide the benefit of home loan insurance to the customer along with home loan. Apart from this, many people take loan insurance along with their home loan on interest. There is no problem of home loan repayment in home loan insurance. Even if the loan holder dies, the loan continues to be repaid on time.
It entirely depends on you whether you take home loan insurance or not. If you take home loan insurance, then you should compare the policies of different companies and select the best one.
Why should one take home loan insurance?
- This protects your invested amount. For example, even if there is any kind of accident or death, the home loan taken by you will still be repaid on time.
- In this you have to pay the premium only once. If the customer finds the premium high then he can also pay the premium through EMI.
- It also provides tax benefits under Section 80C of the Income Tax Act 1961. If you pay the premium through EMI, you do not get any tax benefit. This means that if you want to avail tax benefits, you will have to pay a lump sum premium.
- You get the benefit of home loan insurance on all your loans.
- In this insurance you get the facility of add-on. By availing this facility you can further strengthen your insurance. This insurance can also work in case of any serious illness or any other situation.
- Home loan insurance helps in protecting the loan holder as well as his family. After this insurance, there is no tension of any kind regarding loan payment.
Keep these things in mind
- Home insurance should be taken from any life insurance company or general insurance company only.
- The general insurance company renews its policy every year and a lower premium has to be paid.
- To get long-term coverage, the policyholder has to pay a higher premium.
- If you get your home loan transferred, then you should ensure that your home loan insurance is also transferred.
- If your home loan increases due to higher interest rates, home loan insurance will not be enough to cover your loan amount.
