Home Loan Protection Plan to Protect Your Home Loan

With the upsurge of the real estate sector and the purchase of properties in India, seeking a home loan has become a clichéd aspect. Your home loan is associated with of one of the most imperative assets in your life, i.e. your home. You might have insured most of your assets like your property, automobiles, gadgetsand others, but do you think of insuring your home loan? Taking a home loan is a great concern as you will have to think about your family in the case of untoward incidents.How will they repay the huge amount in your absence which you have taken in the form of a home loan? Will they be capable and accomplish to repay the entire amount?  These are a few things which any loan seeker should think.

Various banks and financial institutions which offer you the complimentary service of home loan insurance along with the home loan you seek. Since the housing finance is rising on a peak, home loan insurance has gained impetus all over. Thus, you will be provided with a cover stating that the responsibility of your loan repayment is on your insurance company in case of permanent disability, critical illness or death. In order to insure your home loan you have to pay a part of amount as the insurance cover policy to secure your home loan. Doing this will save your family in times of peril in your absence.

Getting a home loan protection plan (HLPP) ensures your home loan burden will not be transferred to your family or dependants and they don’t worry that your bank or financial institute takes back the home. Doing this will make it easier for family to possess the property even after the death of the property owner.

After seeking a loan you will have an option of repaying the insurance premium in a lump sum amount in just a single EMI. Meanwhile the bank or the financial institution pays the premium amount to the insurer and later gathers it from the loan seeker along with his monthly instalments.

The benefits of seeking a HLPP are;

• The responsibility of repaying the loan amount is only on you and not on your family.
• In case of any critical illness, permanent disability or death of borrower, the family can still stay under the roof of the house for which home loan is outstanding.
• You can club all the insurance cover charges and pay it at a time along with your monthly instalments.
• Acquiring a home loan will also help you in times of financial crises by keeping your home intact with you and adds an additional security through a loan cosigner. Instances where you lose your job or a financial crunch will not affect your home loan insurance.
• Make sure that you save and take wise financial decision to cover your loan payment. This in turn will make your family secure and will not have a significant impact on them. Home loan insurance will also create a secure feeling amongst your family and saves them from the fear of being driven out of the house.

• You and your family members can seek financial help through the coverage of your home loan in times of sickness or any ailments where there is less income. In case the main bread winner of the family is sick or is unable to work, he/she can benefits from the home loan insurance.
• There are also options wherein you can take the premiums which you have paid for the home loan insurance during the times of tax payment. This will help you pay your tax as well as secure your home loan.

There are an array of home loan insurance policies in the financial market which are provided by companies likeLIC Mortgage Redemption, Aviva Life Shield Platinum, SBI Life Smart Shield, ICICI Pru Home Assure and others. These companies have declining term assurance policies to cover the home loan repayment.

• There are options that you can either opt for a single-premium home loan insurance cover or the one time premium. The payment of the premium depends on the amount of loan, age, health condition and the policy tenure of the loan seeker. Factors like a higher loan amount or a higher age of the loan seeker will result in a higher premium and a flawless medical health report will help the loan seeker to get insurance with a lower premium.