Congratulations on your decision to become a homeowner! As you embark on this exciting journey of owning a home, it is essential to protect your investment and ensure financial security. One way to achieve this is through home loan insurance, a valuable safeguard for borrowers like you.
Home loan insurance is a type of insurance policy specifically designed to protect borrowers in the event of unforeseen circumstances that could impact their ability to repay their home loan. It acts as a safety net, providing financial support and covering the outstanding loan amount in situations such as death, disability, critical illness, or loss of income.
Apart from traditional home loan protection insurance, you also have the option to opt for term insurance on your home loan. This type of insurance covers the outstanding home loan amount in the event of the borrower's death. It ensures that your family is not burdened with the repayment responsibility and can maintain ownership of the property.
The location of your property, your health conditions, your credit score, and lifestyle factors are also assessed during the application process.
The number one reason is to protect your loved ones from any financial burden. Life is unpredictable, and the unfortunate events of disability or death can cause immense financial strain on your family. Home loan cover plans ensure that your loved ones are not burdened with the responsibility of repaying the home loan if something were to happen to you.
In line with the first reason, these plans also safeguard against financial uncertainties. During the tenure of your home loan, unexpected events such as a serious illness or loss of income can put you at risk of defaulting on your loan repayments. Home loan insurance helps cover the outstanding loan amount during such challenging times, providing you with peace of mind and financial stability.
With a home loan protection plan in place, your family can avoid liquidating other investments or assets to repay the home loan. They can direct other streams of income to additional needs and priorities.
Sure, an insurance policy on your home loan sounds like a safe bet. But a blind decision could lead to a potential burden in the future. Here are some considerations you should keep in mind before opting for it:
If you are stuck at any step of the process, you can reach out to IIFL Home Loans and they will assign a representative to address any concerns.
Home loan insurance is an essential protection for borrowers, offering financial security and peace of mind during the tenure of your home loan. By carefully considering your needs, comparing insurance providers, and understanding the policy terms, you can make an informed decision that aligns with your requirements. With the right insurance coverage from IIFL Home Loans in place, you can confidently embark on your homeownership journey, knowing that you have taken steps to safeguard your investment and secure your family's future.
Yes, examples of home loan insurance riders include:
Critical Illness/disability coverage
Loss of Income Insurance
Joint Borrower Insurance
No, it is not mandatory but advisable to be on the safer side.
While home loan insurance protects the borrower and their family by covering the outstanding loan amount in case of unforeseen events, regular home insurance focuses on protecting the physical structure and contents of the home. Both types of insurance are important for homeowners, addressing different aspects of protection for their property and financial well-being.
At IIFL Home Loans, the following requirements need to be met to apply for a home loan:
Age: 18 to 75 years
Salaried or self-employed
Loan tenure: Up to 25 years
Yes! In fact, it is recommended that you check to see if you can even afford the financing that you need for your new home. IIFL Home Loans has a home loan calculator, available online for free. It gives you instant results based on the expected loan amount, potential interest, and loan tenure.
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