Buying a home is a serious decision. Buying a home with the help of a home loan would mean paying EMIs all through one’s life. Under such a scenario, saving money to meet other needs would become difficult.
If anything untoward were to happen to the beneficiary of the home loan, the family would have to bear the burden. Therefore, one should buy insurance along with borrowing a home loan; advise the experts.
The advantages of buying home insurance are listed hereunder.
Protection for the family
The first and foremost advantage of buying home loan insurance would be to provide protection to the family. In the event of the insured’s death, the insurance would be helpful to the family and meet their needs in the absence of the breadwinner. The home loan dues would get automatically cleared, saving the banks the attachment of the property.
Payment of the premium is easy
Home loan insurance would be a great boon to the family. It protects the family from a sense of insecurity. Compared to the benefits it delivers, the expenses associated with paying the premium would be less. Moreover, paying the premium is very easy. The premium can be paid separately or along with the EMI. The premium can be paid on a monthly basis too. Using the home loan insurance calculator, one can easily calculate the home loan insurance premium.
Tax benefits
By purchasing the home loan protection cover, the purchaser can avail himself or herself of the tax benefits under IT Act Section 80C. The claim is possible only when the premium is paid separately and not along with the EMI. Besides the tax benefits, during emergencies and crisis situations, the loan protection plan provides security for the property.
Additional benefits
The banks offer additional benefits along with a home loan insurance policy. In fact, buying the insurance policy is not compulsory. In case of the death of the loanee or in case the loanee is thrown out of employment or rendered incapacitated due to any reason, the home loan insurance policy would be useful. The home loan insurance plans provide full security for the insured. Therefore, if anyone avails of home loans but is not insured, he or she should immediately buy a home loan insurance policy.
