By Mr. Kapil Mehta, SecureNow Insurance Broker
Home loan
insurance is more important than home insurance..!
Home loan insurance makes
sure that your family has a valuable asset even if you die...
By
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| Mr. Kapil Mehta, SecureNow Insurance Broker |
Question:
Could you tell, the
difference between home insurance & home loan insurance? Which is a better
option? - Sumeet Shekar
Answer:
Home insurance & home
loan insurance cover entirely different risks.
Home insurance covers material damage to your house / flat /
apartment caused by fire, earthquake, flood or / malicious damage. It can also
be extended to cover burglary & damage to your household items.
A home insurance will cost
about Rs.15,000 per year for Rs.1 crore of insurance cover. That is about
Rs.150 per year for Rs.1 lakh of insurance cover, nearly Rs.1,500 per year for
Rs.10 lakh of insurance cover.
Home loan insurance covers you for the risk of death before paying off
your equated monthly instalments (EMIs)
for your housing loan.
So if you die before paying
off your home loan, the insurer would pay the outstanding loan amount to the
loan provider and your nominees will retain the house.
The cost of home loan
insurance depends upon your age &
loan amount. Broadly a cover for Rs.1 crore loan over 15 years will be a
one-time premium of Rs.3 lakhto 3.5 lakh. That is a cover for Rs.10 lakh home
loan over 15 years will be a one time premium of Rs.30,000 to Rs. 35,000. a cover for Rs.1 lakh home loan over 15 years
will be a one time premium of Rs.3,000 to Rs. 3,500.
Home loan insurance is more
important because it makes sure that your family has a valuable asset even if
you die. Home insurance is important but a lower priority.
About the Author...!
Mr. Kapil Mehta is
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