Home loan insurance policy

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Home Loan Insurance Policy
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What is home loan insurance policy ?

• A home loan insurance policy requires a lengthy
  commitment. Loan terms for homes can be as long
  as 25 to 30 years. We are all aware that there
  are no guarantee cards in life. Imagine a
  scenario where the person who makes the monthly
  or quarterly EMI payments passes away due to
  unforeseen circumstances.
• Therefore, the dependent family members are
  responsible for repaying the loan. The house or
  the collateral could be taken in the event that
  the loan is not returned and the instalments are
  not made on time.

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How does Home Loan Insurance Works ?

• The insurance for home loans is comparable to
  term insurance. You are protected by this
  insurance up until the time when you must repay
  the debt. The insurance period ends when the
  remaining loan balance is repaid. However, the
  family can use the loan insurance to pay off the
  outstanding balance of the home loan if the
  person making the loan payments passes away
  during the loan term. This prevents the bank from
  seizing the house or the other assets used as
  collateral.
• Payment of Premium
• Important for lenders too
• Riders and add-on benefits

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