Adream house costs a fortune today. And if you've recently invested in a lavish house, do not forget to insure the home loan. Home loan ...
Adream house costs a fortune today. And if you've recently invested in a lavish house, do not forget to insure the home loan. Home loan insurance is different from insurance cover for the house. Insuring the house translates to securing the house and its contents from perils and theft. In case of a fire or damage to the property, the owner will be compensated as per the terms and conditions of the cover. Home loan insurance comes to the rescue, if an unfortunate mishap takes place and the breadwinner cannot work. If you're the sole breadwinner and have a huge loan to repay, an insurance cover will put all uncertainties to rest.
Some home owners worry if the roof will be snatched from their loved ones in case something unforeseen happens to them. How will my wife and children be able to repay the monthly EMI dues? With property insurance covers rates significantly low and discounts/incentives offered by various insurance companies, homeowners can pick a good deal. Today, most lenders do not insist on loan cover, however many package them into attractive deals and offers.
Shiva, took a loan for Rs 15 lakhs. He was painstakingly repaying the loan for three years. Then tragedy struck in the form of a road accident. He rammed his two-wheeler into a bus, but fortunately came out alive. However, with multiple fractures and severe spine injuries, Shiva could work no more. He was confined to the four walls of the house. He had survived the nightmare but the home loan dues were haunting him. Jobless and physically challenged for life, he could not bring in that kind of big money towards EMIs. The home loan cover came to his rescue. Shiva had already repaid Rs 3 lakhs of the loan amount. The insurance company picked up the remaining Rs 12 lakhs due. When a borrower insures the home loan, the insurance company takes care of the pending amount that he owes to the lender.
How does an insurance company arrive at the premium amount? Like most insurance covers, to compute the premium amount, the insurance company takes into consideration age, medical history of the person taking the loan, the total loan amount and loan tenure. A home loan cover promises to relieve your family of the financial burden in future. But read carefully the terms and conditions of the cover. There may be certain circumstances under which the insurer may not pick up the burden for you. As a home owner, go through and get clarifications, if you do not want serious shocks in the future.
Though many lenders do not make it mandatory, this additional insurance policy lowers the risk of default. For borrowers, the cover gives some much-needed peace of mind and security
Courtesy: TimesofIndia
Some home owners worry if the roof will be snatched from their loved ones in case something unforeseen happens to them. How will my wife and children be able to repay the monthly EMI dues? With property insurance covers rates significantly low and discounts/incentives offered by various insurance companies, homeowners can pick a good deal. Today, most lenders do not insist on loan cover, however many package them into attractive deals and offers.
Shiva, took a loan for Rs 15 lakhs. He was painstakingly repaying the loan for three years. Then tragedy struck in the form of a road accident. He rammed his two-wheeler into a bus, but fortunately came out alive. However, with multiple fractures and severe spine injuries, Shiva could work no more. He was confined to the four walls of the house. He had survived the nightmare but the home loan dues were haunting him. Jobless and physically challenged for life, he could not bring in that kind of big money towards EMIs. The home loan cover came to his rescue. Shiva had already repaid Rs 3 lakhs of the loan amount. The insurance company picked up the remaining Rs 12 lakhs due. When a borrower insures the home loan, the insurance company takes care of the pending amount that he owes to the lender.
How does an insurance company arrive at the premium amount? Like most insurance covers, to compute the premium amount, the insurance company takes into consideration age, medical history of the person taking the loan, the total loan amount and loan tenure. A home loan cover promises to relieve your family of the financial burden in future. But read carefully the terms and conditions of the cover. There may be certain circumstances under which the insurer may not pick up the burden for you. As a home owner, go through and get clarifications, if you do not want serious shocks in the future.
Though many lenders do not make it mandatory, this additional insurance policy lowers the risk of default. For borrowers, the cover gives some much-needed peace of mind and security
Courtesy: TimesofIndia
