Owing a home is a dream of most of us, and it is often achieved with the support of a home loan. However, when this dream becomes a reality, it mostly comes with various financial responsibilities. One of the biggest challenges includes your family’s financial security in case something goes wrong with you. This is where term and home insurance coverage provide the support you and your loved ones need during unforeseen events.
In this blog, we’ll explore why a term insurance plan is necessary for home loan borrowers and share some tips for choosing the best plan.
What is a Term Insurance?
Term insurance, or you can say a life insurance policy is designed to provide financial protection for a specific period during unexpected events. Unlike other insurance, like home insurance online, term insurance is pretty simple and budget-friendly, ensuring your family is financially protected if something happens to you.
The primary purpose is to help your loved ones bear living and other basic expenses, or they can even use the funds to cover outstanding loan payments. For home loan borrowers, term insurance is one way to protect their home and settle the loan amount without mortgaging their assets.
Importance of Term Insurance for Home Loan Borrowers
While there is an option to take the best home insurance, here are some reasons you can also consider taking term insurance to protect your home loan and your family:
- Affordable Protection: Term insurance is the best option for home loan borrowers looking for affordable plans that fit their budget and protect their loans and loved ones financially. Term insurance plans are generally budget-friendly, so individuals can easily take them without affecting their monthly costs.
- Fixed Benefits: No matter when a claim is made, a nominee can take advantage of receiving the total amount when needed. This helps them to repay the home loan and cover other expenses.
- Financial Security of Family: Term insurance ensures that your family is financially protected and relieves them from the burden of your home loan repayments. This keeps the loan payment process stress-free while they go through the tough times of losing a loved one.
- Peace of Mind: To know that your loved ones are protected financially gives you peace of mind and makes you stress-free. You can focus on other responsibilities without worrying about the implications of unexpected events.
Choosing the Best Term Insurance Plan
To get the maximum benefits of your term insurance plan, it is essential to choose the right policy. Here are some tips to consider:
- Carefully assess your needs, home loan coverage and other financial obligations to choose the right plan.
- Do your research, compare plans from different platforms and select the policy that best suits your current situation.
- Choose a reputable platform that offers 24/7 customer service and has good reviews.
- Read the terms and conditions carefully and learn about the policy’s exclusions to avoid future surprises.
Conclusion
When taking out a home loan, it is essential to consider term insurance or a home loan protection plan to ensure your family home remains safe in case of unexpected events. Term insurance offers financial assistance to your loved ones during tough times.
Home loan borrowers seeking the best home insurance can check out Stashfin’s comprehensive home protection insurance, which offers coverage of up to ₹5,00,000 with a tenure of 12 months at an affordable premium of ₹608. The plan provides complete protection of your household items, such as furniture and electronics, in case of natural disasters and an additional protection of ₹1,00,000 for valuable items like jewellery.
Whether you invest in term insurance or home loan protection, choose a wise plan that best suits your current situation and make sure to read all the terms and conditions.
