How to insure your home loan?
Term insurance policy is a good protection for your Home loans in case of any unforeseen events. Your policy insurance supports the family to pay the outstanding loan amount and provides for your children’s education and marriage.
Benefits of Home loans
- Insurance cover remains constant over a longer duration (like 25 years) depending on your age
- Long time to pay loans up to 20 years.
- Peace of mind.
- You get income tax benefit for your housing loan.
- Multiple co-applicants and applicants can be covered.
Insurance cover of home loans
Most home loan insurance cover gives a reducing cover in which liability is reduced as one repays the loan. At any point of tenure the nominee gets a full amount when the claim is made. Constant covers are more expensive than the standard loan insurance plans. These loan insurance products are easier to compare as they more or less have the same key benefits.
In order to accept the premium payments for term covers and loan insurance some factors are as follows:
- Age of the policy holder
- Policy tenure
- Amount of the sum insured.
- Medical history
For premium paying plans term plans are regular premium plans that charge annually.
One must ensure several factors also while calculating the net cost before deciding on an insurance amount for home loans. For more information contact www.rsfinanceservices.com