Why Should You Buy Home Loan Protection Plan Along With Home Loan?
Taking out a home loan is a long-term investment. Why home loans for home buying? A House is everyone's dream. Purchasing and owning your own house has several advantages other than saving rent in a month.
Buying your own house is a big investment, but it's a good one since land is an asset that appreciates in value. When you take out a home loan to buy a property, the loan becomes an obligation that you must repay over time. Properties that are purchased with a loan remain mortgaged to the banks issuing the loan till all EMIs are paid by the buyer.
The Home Loan Payment ?
Death is one sad event that is very unfortunate in life for you as well as for your family, and it can become even worse if you are the only breadwinner in the family. In such a sad event, the payment/EMI of the loan amount is transferred to the borrower's dependents. In the event of the buyer's death, the family is obligated to pay off the outstanding house loan in order to keep the property; otherwise, the bank may liquidate the property to recoup the debt.
What Experts Advise?
Experts advise a protection plan is usually recommended when taking out a house loan, so that, in the event of an unforeseen event, the individual or his or her family will be able to repay the debt. The nominee will receive the cover amount as funds from the Term insurance or loan protection plan in the event of an unexpected event such as the death of the buyer of the residential property. This money can then be utilized to pay off the outstanding debt and keep possession of the property. Home loan insurance provides you and your family much-needed peace of mind by safeguarding them from unforeseen events.