Know About Home Loan Insurance And It's Pros And Cons

Have a prior home loan knowledge before availing

insurance agents pressurize you to take a policy all time, but you should be aware of the plans and benefits that the insurance offers you. have clarity on the home loan insurance and home insurance. do not confuse while availing it. Know your requirement and go for the policy.

Home insurance protects the home buyers from the loss of damage on the property in case of fire or any such accidents. Home insurance covers the risk of loss of homes or Loss of personal belongings. home insurance is of comparatively lower cost.

Home Loan Insurance

Home loan insurance ensures the loan which you borrow to buy the property. Home loan insurance helps the family repay the outstanding loan amount if in case the applicant is unable to pay the loan by the unforeseen event. if the home loan is insured the lender is not burdened with lending the amount with additional risk.

Know More About The Home Loan Insurance

Experts say that Home loan Insurance is an essential part of home buying since it covers the huge risk of the loan in case of the sudden demise of the applicant and saves the family by covering the outstanding loan amount. It helps the dependent family members from the burden of home loan. As you pay the loan every month the home loan insurance policy coverage decreases as the loan amount comes down.

Before applying for the home loan insurance know:

·       The risk coverage of the entire policy  like any other insurance, the regular premium should be paid on this insurance too

A premium of the home loan insurance depends on:

·         Applicants age

·         Total loan amount

·         Tenure

·         The medical health of the applicant

Other benefits of the home loan insurance

Tax benefits under section 80C of Income tax act can be claimed by the premium is paid by the borrower himself. it cannot be claimed if the EMI's are paid by the lender.

you can opt for other riders in the home loan insurance policy, the loan amount will be covered not just in case of death but also in the case of critical illness, disability or loss of the job.

Disadvantages of Home Loan Insurance

if the applicant increases the home loan tenure due to the increase in the interest rates, the insurance premium may not be able to fully cover the home loan.

In the case of foreclosure, the applicant may lose the entire part of the premium

Under the home loan protection plan (HLPP), the insurance offered under the home loan insurance policy progressively reduces as the loan is repaid.

Since the policy is of the third party, banks earn the commission for selling the policy

It is advisable to buy the property with the proper home loan facility and eligible for the insurance coverage. Concorde Mayfair residential project is the top-class property with all the amenities and risk cover. Concorde Mayfair is located in the aggressively developing locations of Medahalli in Bangalore with excellent infrastructure and civic amenities.

Opt for the home loan insurance while getting the home loan!!