With the increasing penetration of housing finance, complementary products such as home loan insurance also has gained momentum. By paying a small amount of premium for a home loan insurance policy, the policyholder (home owner) is provided with a cover that would not put the onus of repayment of the loan in case of the policyholder's death. This insurance policy provides the family with much-needed financial cover, emotional security and peace of mind.
Home loan insurance is nothing but a variation of pure term insurance plan offered by life insurance companies. But unlike a term insurance where the coverage amount is fixed, the coverage in a home loan insurance policy keeps reducing with the decreasing liability of the loan.
There are some popular decreasing term assurance policies to cover home loan repayment provided by life insurance companies. Some examples are: LIC Mortgage Redemption, ICICI Pru Home Assure, Aegon Religare Decreasing Term Plan, Aviva LifeShield Platinum and SBI Life Smart Shield...
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