Pinnacle

Are you the sole breadwinner of the family, making hefty monthly repayments towards a home loan? Do you fear that your family will be in severe financial distress in case something unfortunate happens to you? How will your dependents pay the lender? Here is some news that will bring some solace to borrowers who have taken huge loans. For a small monthly premium, home loan insurance cover ensures that the outstanding loan is repaid if the borrower dies during the term of the loan.

This insurance cover is redundant for borrowers who have enough alternate sources of income, other investments and alternate savings to fall back on in the hour of crisis. Home loan insurance is product meant for borrowers who have no alternate source of money to rise. An outflow of small premium money will provide them the much-needed financial cover and emotional security.

While some lenders offer free home loan cover, others have a tie-up with a life insurance company. Such plans usually offer negotiated group rates. Repayments are made simpler when the premium amount is clubbed with EMI. If the borrower decides to make a onetime payment towards insurance cover, the amount is added to the home loan amount and equated monthly installments are calculated on the total amount.

Premium for your cover is dependent on four factors  loan amount, tenure, age and health condition of borrower. A higher loan amount implies a higher premium. If the tenure of the loan is long, premiums will be on the higher side. Younger borrowers are charged lesser premiums when compared to older ones. A person suffering from illness like heart ailments or BP will be charged more premium than a healthy individual.

Exclusive home insurance plans with numerous benefits are offered by banks that insure your home loan. In case of a joint loan, two policies will have to be taken in the names of the joint applicants and premium amounts would get doubled. Here, even if one of the applicants dies, the loan is taken over by the insurance company.

Take a home loan cover if your family does not have additional income sources to repay the loan. For a few hundred rupees, your hefty EMI dues are covered. With home loan repayment protection you can set all your anxieties at rest.