A home loan provides financial assistance to a borrower when the person needs it the most, especially if one is making property purchases, like buying a 1 BHK luxury home in Thane. It is the borrower’s responsibility to pay off the loan within the stipulated period. However, in certain cases, such as accident, death, or job loss, when the borrower cannot pay off the EMIs; it’s the insurance that comes in useful. Home loan insurance pays off your loan even when you are unable to pay off the loan in unforeseen circumstances.
The question arises whether securing insurance for a home loan is necessary. Nowadays most companies offer home loans along with home loan insurance. Here we will discuss the benefits of seeking home loan insurance. You can also choose a home loan insurance from a different company than the one you seek a home loan from to buy residential apartments in Thane, Mumbai, or anywhere in India.
Top Key Reasons Why you need to Avail Home Loan Insurance
Not everyone can afford to buy a 2 BHK Luxury home in Thane, and for that one needs a home loan. However, for a more secure experience is it mandatory to seek insurance for a home loan? Well, the answer is no. The Reserve Bank of India (RBI) has not made it mandatory, to purchase a home insurance plan while getting a home loan. But insurance offers extra security and more peace of mind while bolstering your financial portfolio.
Offers Investment Protection
Home loan insurance offers investment protection from unforeseen events, like an accident, death, or job loss. The borrower’s loan gets settled even in such unfavorable and unforeseen circumstances.
Easy To Pay Off Premium
Home loan insurance offers easy to pay and affordable premiums that allow you to protect your home at a nominal cost. The process is typically straightforward and hassle- free with less documentation.
Add-ons on the home loan insurance provide extra coverage at an extra cost. The additional coverage not only stops the loan from going into bad debt, but also strengthens the policy to protect against certain medical conditions, such as terminal illness, accidental death, disability, or job loss.
Offers Financial Protection To Family
In the event of unexpected circumstances that a family loses the owner of the home who is also the bread-earner, the home loan insurance policy offers a financial protective barrier to the family. The burden of paying off the loan does not fall on the family members relieving them of payments during a difficult time.
Home loan insurance benefits both lenders and borrowers as it is a protective formula against bad debts. There are many types of life insurance policies in your financial portfolio, but to make your family’s future secure, insurance for a home loan can be a useful product to add to your financial kitty. It takes care of financial liabilities during a rainy day. While having adequate insurance coverage counts as sound risk management, it is up to you to evaluate the situation and choose the right plan, instead of selecting a product forced on you.