Home Discover Journals Should I Take Home Loan Insurance?

Should I Take Home Loan Insurance?

By Finserv MARKETS - Apr 17,2019
Views Icon694 Views 0 0 Comments

Should I Take Home Loan Insurance?

A lot of financial institutions offer home loan insurance policies while offering a home loan. It is not mandatory to purchase or there are no set guidelines for it but if it comes with the loan or purchasing independently at a good premium rate is not a bad decision at all. A home loan insurance is not typical home insurance; a home loan insurance is the settlement that is paid by the insurance company if the borrower fails to do so in the event of his/her death. It is a great relief for the family who will still have a roof over their head without having to worry about the house or loan repayment.

What are the types of Home Loan Insurance?

Financial Institutions typically offer three types of insurance plans:

  • Level Cover

The insured items and the coverage remain the same throughout the tenure of the loan.

  • Hybrid Cover

The coverage remains the same in the first year but reduces with each passing year.

  • Reducing Cover 

Coverage and outstanding loan reduce with tenure.

Features and Benefits of Home Loan Insurance:

  • Home Loan Insurance provides a lump sum benefit that can be used to repay the loan.
  • Policy is subjected to lapse if the home loan is transferred, loan restructuring or full repayment of loan.
  • The lump sum amount is to be paid to the policyholder or beneficiary.
  • The borrower even enjoys tax benefit under Section 80c and 80D of the Indian law.
  • If the loan is joint, a single home loan insurance will cover both borrowers.
  • With additional premium this insurance can also cover medical conditions like, disability and critical illness.
  • The borrower can either pay the premium annually or make the whole payment in one go.
  • Borrowers can also convert the premium into EMIs.
  • Home loan Insurance gives coverage for certain diseases like cancer, heart attack, etc.
  • Home Loan insurance does not cover suicide or natural death.

Home Loan Insurance doesn’t seem like a bad idea if one had to weigh all options. However, the final decision lies with the borrower who would know what suits his/her interests and pocket best.

With Finserv MARKETS, applying for a Bajaj Finserv home loan online is easy, quick and completely hassle-free. What’s more? You can avail a host of other features and benefits under PMAY scheme, right from the comfort of your home. So why wait? Head over to Finserv MARKETS, and apply for a home loan with us, today!

“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”

Comments

Connect with Us
Connect with Us

Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522