Top five reasons why you should purchase a home loan insurance

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Summary

Purchasing a home loan is not a piece of cake. It costs a hefty amount of income to repay it throughout life.

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Purchasing a home loan is not a piece of cake. It costs a hefty amount of income to repay it throughout life. In such a situation, saving money becomes difficult and we plan to invest in schemes and policies that ensure a good return on investment including FD, RD & insurance policies, etc. However, when it comes to securing a home loan by purchasing home loan insurance, we try to find different reasons to justify our decision to not purchase home loan insurance.

Safeguards your family

The first and foremost benefit of taking a home loan insurance plan is that it protects your family in critical situations, including the sudden demise of the home loan payee. Yes, you read it right! This insurance protection plan works even after your demise and caters to your family’s needs in your absence.

Secures your asset and collateral

Undoubtedly, securing your assets and collateral is the biggest happiness you must be waiting to experience throughout your life. Nevertheless, it is important to understand that with no control over the unforeseen circumstances, an insurance protection plan becomes imperative to purchase. It is no less than taking out a term insurance policy for your family, which supports you financially even after your demise.

Easy payment of the premium

Your home loan insurance is a protector of your home and covers you against the home loan you’ve purchased. Therefore, home loan insurance is a boon to the family that secures and protects them from any outside threat or insecurities. The home loan insurance cost is the minimum as compared with the benefits it provides.

Tax benefits

On the purchase of home loan protection cover, you can claim a deduction under Section 80C of the Income Tax Act, 1961. However, the deductions can only be claimed when the premium is not combined with the home loan and is paid separately. With tax benefits, this loan protection plan offers the security of the asset even during a disaster or crisis. Therefore, you must think about it and plan your finances to buy housing loan insurance while buying a home loan.

Additional offered benefits

The additional benefits of home loan insurance are offered by the bank, which is neither regulated nor mandatory to buy. The products like accidental death coverage, unemployment, disability, etc., ensure that you are not alone in dealing with the period of your crisis, but a lending hand from a bank is always available to support you financially wherever required. These home loan insurance plans cover you completely and act as a “Kavach” to rescue you during the peak of the crisis.