How will our loved ones cope financially and emotionally after we are gone? This question haunts almost every one of us. We always ponder about the well being of our loved ones in case of any eventuality. For this very reason, we make sure we have sorted our finances and protect them even before the eventuality strikes. Buying a home is a dream come true for many. It is not just an investment but an emotional milestone. Having an existing home loan is a huge responsibility. If you are someone who has a huge home loan and are worried who will repay it after you are gone, it is time you read about home loan insurance policies in India.
Also known as “Mortgage Loan Insurance” or “Home Loan Protection Plan”, a home loan insurance policy takes care of your home loan debt in case of eventualities like death, critical illness, or permanent disability.
Unlike home loan insurance, a home insurance plan only protects you against risks to your property that are caused by an earthquake, fire, theft, storm, etc. It does not help your dependents pay the total outstanding home loan amount in your absence.
It is not mandatory to have a home loan insurance plan. You can choose not to have one. So, if your lender processes your home loan and asks you to pick up a loan protection plan, you have the right to tell no. However, before you make a decision, consider the advantages of having a comprehensive home loan insurance plan.
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