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Having our own home is one of the major life goals we set for ourselves. A lot of us take loans and often commit our life’s savings and even future earnings to reach this special milestone.
However, this dream can come crashing down if we are unable to repay the home loan.
The risk of non-repayment of home loans is triggered by two reasons: first, the borrower’s demise and second, the loss of the borrower’s earning capacity due to a critical illness or disability due to accident. Both reasons lead to burdening the dependents with the loan EMIs. Due to the failure of loan repayment, one may have to forego their property as a stressed asset to the lender.
How Do Term Insurance Plans Cover Home Loan Risks?
A term insurance plan can help you counter the above mentioned unforeseen eventualities. It is an affordable option providing a large Sum Assured for a relatively lower premium. In the event of the death of the borrower, the dependents are safeguarded with the term plan cover which they can use to repay the home loan.
Maximize Benefits
Ensure that the insurance term is greater than (or at least equal to) the loan tenure. The best term insurance plan is a combination of base cover and add-on benefits through riders available on payment of additional premium. Suffering accidental dismemberment or life-threatening diseases like cancer, stroke or organ failure, can result in a loss in the earning capacity of the borrower. In such situations, add-ons like Critical Illness Rider and Accident Benefit Rider go a long way in shielding you by bringing both lumpsum and staggering benefits that help loan repayment.
Secure your family’s dreams of owning your own home, and buy a term insurance plan to secure them from the liability of loan EMIs too.
Max Life Online Term Plan Plus. A Non-Linked Non-Participating Individual Pure Risk Life Insurance Plan (UIN - 104N092V04)
ARN: 16052019/KC7
