SECURED YOUR DREAM HOUSE.. 3 Best Practical Tips.....

by RONAK MORJARIA, Apnapaisa

Most people wish to own their dream home. They work hard,save/invest money and borrow, to fulfill this aspiration. However, not many think of a situation in which the precious home needs to be protected, especially in their absence. Listed below are a few ways in which you can safeguard your house, even when you are not there.

1. BUY TERM AND DISABILITY INSURANCE IF YOU HAVE A HOUSING LOAN..

A housing loan is availed for buying a home. However, you will never want your family to get burdened with your outstanding housing loan.

 

 RONAK MORJARIA,
Apnapaisa

 In case of an unfortunate event, your family will have to repay the housing loan and pay EMIs (Equated Monthly Installments) . If they are unable to repay the loan, the bank / housing finance company (HFC)  has the right to take possession of your home.

So, it is advisable to buy a term insurance cover, equal to the housing loan amount.

Term insurance will pay the sum assured to the nominee in case of your death and the home loan can be repaid from the insurance proceeds.

Additionally, you should also buy a critical illness cover as well as an accidental disability insurance cover equal to the home loan amount, as your term insurance will not pay you, in case of any disability - it will pay only in case of death.

Your income will stop in case of an accidental disability or /  serious disability like a kidney failure, paralytic stroke,etc.

Despite this,you will have to pay the EMIs. If you are adequately covered, the insurance firm pays the sum assured or / weekly benefit, in case of critical illness / accidental disability, which serves as an income replacement, so you can continue paying the EMIs.

2. BUY HOME INSURANCE..

You buy your dream home, furnish it& install the latest electronic equipment in it. However, do you ever think of what will happen if your home catches fire or there is a burglary To cover these risks, you need to get home insurance.

Home insurance covers loss or /  damage to the home and its contents in case of events  like fire, earthquake, lightning, floods, etc... It also covers the contents of house, including domestic appliances &  electronic equipment in case of theft or burglary.

3. WRITE A WILL..

You buy your dream home so that your family & you can live happily. The biggest problem arises in case of your untimely death.

Your predecessors, siblings &  children,may get into misunderstandings and fights for the assets, especially your house. It is advisable to write a will, so that your assets are inherited by the people you want them to go to.

With a will in place, the ownership of your home is passed on to the person you wish to bequeath it to, in the event of your death.

It is better to be safe than sorry, so these are the certain things you should do so that your house is secure in your absence.

By doing this, you can be rest assured that your house is secure & your family doesn't have to face any problems.

It is time to open your files, check whether you are insured adequately (if you have a housing loan), buy a home insurance and write a will.

About the author..

The writer RONAK MORJARIA is CFPCM Research Analyst at Apnapaisa

 Mr. Ronak Morjaria is currently working as a Research Analyst at ApnaPaisa.com. He has done graduation in Bachelors of Commerce (Financial Market) from Mumbai University. While doing his graduation he also completed his CFP. He has various certifications such as IRDA - General Insurance Consultant, NISM/AMFI - Mutual Fund Distributor and also few NCFM modules. 

Mr. Ronak Morjaria has also contributed few articles in Moneycontrol.com, Rediff, The Tribune and Myiris.com. 

Currently he is pursuing CFA (U.S.A.). He is passionate about learning new things in personal finance. My Mentor: My father Thought leader I look up to: Ratan Tata A quote that inspires me:  Nothing is impossible; the word itself says `I`m possible`!  Books/movies that inspired me: The Secret When I am not working, I am: Partying with friends My biggest achievement so far: Completing CFP before my graduation My best investment so far: Just started investing via SIP, hope it will the Best!! My Indulgence: Education I avoid: Competition Issues I am passionate about: Personal finance One idea for a better society: "Respect the Old when you are Young, Help the Weak when you are Strong, Confess your fault when you are Wrong, because one day in life you will be OLD, WEAK & WRONG..." 

Twitter Handle: https://twitter.com/RonakMorjaria 

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