Owning a house is one a very important financial planning decisions that one makes during his/her lifetime. With the easy availability of home loans, it is not difficult for individuals to realise their dream of purchasing their own house.
Same time, with the equated monthly instalments (EMIs ) increasing about a 3-6 months, the repayment of the loan has become a huge financial stress for an individual, where he/she has to give a large part of their salary to repay the loan. If something unfortunate were to happen to the person who has taken the loan, the dream of owning a house can turn into a nightmare for his/her family, especially when other members may not have the ability to repay the loan amount. Not only is this a huge financial burden, but failure to pay off the EMI or loan can mean losing the security of one's house.
In order to protect the financial needs of his/her family and ensure that the house is not taken away should something unforeseen happen to any one. So, must take a life cover, covering the equal to loan amount. There are various options available in the market. Some times the bank or housing finance company arrange it self a housing loan cover with leading life insurance companies.
In case of any unfortunate event such as the death of the borrower before the loan is repaid, the sum received from the insurance company helps to pay off the loan outstanding to the lender. The house will be owned to the family, no further EMI's pay.
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