Connection between Term Insurance and Home loan

Figuring out a “ Perfect Home” is a tedious task. Right from imagining your family staying in that house to fitting into a particular budget involves a lot of research. After all its a basic survival necessity. You choose the best home loan company that suits your requirement. Then comes the home loan process. Funding a loan isn’t easy as it seems as you have to provide valid documents and fulfill the conditions. Then comes the approval. Its like a dream come true. But, what happens in any case of an awful incident? Is your family ready to bear the consequences? Unarguably NO. For this you need a life cover. Term insurance Plan is a kind of life cover. Term plans are custom made to secure ones family needs in case of the insured person death or any eventuality. Term Insurance Plan provides coverage to the nominees in case the insured person expires. It is for a defined period of time or say till the policy is active. The term plan comes in handy when you have a home loan.

How a Term Plan covers a Home Loan?

Lets have a glance at some of the ways in which a Term Plan can be beneficial for a person who has a home loan.

• Why burden your family with financial losses instead buy a term insurance cover which will help them to repay the loan amount in your absence.

• Buy a plan that is large enough to cover your loan valuIf you die before repaying the loan amount, the sum assured from the term plan will take care of the repayment. The EMI wont be skipped and the family will not be forced to move out of the house.

• Term plans are highly affordable means its the most inexpensive method that provides financial security with low premiums as compared to other policies.

• Term insurance is useful for people who don’t believe in cash savings or investing in other funds to meet their monetary demands.

• People with low or moderate income can also also afford this Term Plans as they come with quite a low premium with death cover.

• If you have a family history of critical illness then you can choose a Term Insurance Plan with a critical illness rider. You get benefits buying this rider. When diagnosed with an illness like bypass, cancer, stroke or say a surgery the insured gets lump sum amount against medical expenses. In a remarkable way critical illness rider along with Term Insurance Plan certainly helps you out.

• Even after the completion of your home loan the Term Insurance Plan offers life cover to the insured and the nominees. It helps you repay the loans that are still due or gives financial assistance to you and your family.

To cut the long story short it is crucial to buy a Term Insurance along with your Home Loan. The Term Insurance Plan provides financial aid to the members of your family in your unavailability or non-existence. The Term Insurance does not have any maturity benefits. So, what are you waiting for? Go ahead and buy a Term Insurance Plan and cover your Home Loan if you haven’t done it yet.