Term Plan Insurance

No one takes a loan with the intention to default, but many things can go wrong during the tenure of a loan, especially a long-term loan like home loans. The responsibilities as a borrower start after the loan is disbursed. One has to pay a fixed instalment every month, which includes a part of the principal amount and the interest. For instance, if you avail a home loan of Rs. 25 lakhs at 9% interest for a tenure of 20 years, you will be paying Rs. 22,525 every month. The liability remains until the entire loan is paid off.

The family of the borrower becomes the primary sufferer especially in the case of default due to death of the primary bread earner. Term insurance for a home loan can help you ring-fence your family from the liability in your absence. Term insurance plan for a home loan can help you protect your family in your absence. Basic term insurance against home loan could help in the event of the insured’s premature death and provide funds for the repayment of the loan.

A loan can get you and your loved ones the comfort of a car and security of a home, and many other things. However, your real responsibility begins only after taking the loan. You can repay the loan till you are alive and working. But have you given a thought about what your family would do in case something unfortunate happens to you before you repay the loans?

To ensure that the equated monthly instalments (EMIs) are paid on time, you need a backup plan to take care of your liabilities when you are not around – for this, you need an equivalent insurance cover against the loan. A term insurance plan can be the ideal solution in such a situation. A term insurance plan is a type of life cover which provides security to your family in case of an unfortunate event at just a nominal cost.

You can get an extensive cover of Rs 1 crore at an approximate premium of up to Rs 12,000 for a year. However, the premium amount will depend on the policyholder’s age and lifestyle. Smokers have to shell out more for the same amount of insurance cover.

No one takes a loan with the intention to default, but many things can go wrong during the tenure of a loan, especially a long-term loan like home loans. The responsibilities as a borrower start after the loan is disbursed. One has to pay a fixed instalment every month, which includes a part of the principal amount and the interest. For instance, if you avail a home loan of Rs. 25 lakhs at 9% interest for a tenure of 20 years, you will be paying Rs. 22,525 every month. The liability remains until the entire loan is paid off.

The family of the borrower becomes the primary sufferer especially in the case of default due to death of the primary bread earner. Term insurance for a home loan can help you ring-fence your family from the liability in your absence. Term insurance plan for a home loan can help you protect your family in your absence. Basic term insurance against home loan could help in the event of the insured’s premature death and provide funds for the repayment of the loan.