A home is always better than a rented place for the salaried or self-employed. With real estate picking up pace across the nation, the cost for owning a house is always on the rise. Home loans are a much needed help that are readily offered by many banks and they can help you realise your wish of a dream home.
While home loans might come with attractive interest rates and repayment tenures, the settling of a loan depends on your income status and more importantly, your very existence. Until a home loan is actually paid off, one doesn’t have the complete ownership of the house. In case of the unfortunate demise of the loan holder without the settlement of the loan, the loan provider can foreclose on the property, causing the loan holder’s family substantial inconvenience.
Availing a life insurance helps out in such a scenario, wherein, the death benefit or the maturity benefit can be used to pay off the home loan amount and keep the family safe from any further financial or emotional discomfiture.
Types of Life Insurance Plans for Home Loans from Max Life:
Plans from Max Life Insurance aimed at financial protection offer the flexibility of choosing the tenure and the cover amount and can be easily availed online or offline. Though most plans from Max Life are capable of providing the required amount of maturity benefit or death benefit that can deal efficiently with home loans, the protection segment offers the best options.
Max Life Premium Return Protection Plan:
A term insurance plan with low premium amounts and offering options to avail life insurance and accidental death benefit for the nominee. In addition to that, upon survival till policy maturity, a maturity benefit is payable. Additional tax benefits might be applicable. A maximum Sum Assured of INR 1 crore allows for easy coverage most home loan amounts.
Max Life Super Term Plan:
An affordable term insurance plan that offers variable payment options with an option of increasing sum assured. As the loan amount decreases, a larger portion of the sum assured will be available to the nominee as a death benefit. No limit on sum assured values. Additional tax benefits might be applicable.
How to purchase Max Life Insurance policies for Home Loans?
The entire range of insurance plans from Max Life can be reviewed and compared online at BankBazaar. The comparison will include key details like the premium amount to be paid, the sum assured, the maturity benefits, optional riders and details about the funds that premiums might be invested in. All the information will be presented in a concise, tabular format with pictorial references when and where needed.
Upon deciding on a particular plan, one can fill in details pertaining to the life cover that is desired or the premium amount that one can pay and BankBazaar’s nifty online program will do the rest of the calculation and guide you further to the insurer, aiding you through every step of the process, till you get a policy in your name.
While opting for a life insurance policy that is being aimed to provide protection for a home loan, one should ideally select a policy with a sum assured amount greater than the outstanding loan amount.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017