Insurance protection for your house

K. ARAVIND

Borrowers have an obligation to ensure the repayment of the loan. Buying or building a home is only the beginning of a dream come true. Do not assume that by owning a home your dreams have come true. We also need to take care to cover some of the risks through insurance so that the house can always be our own.

If there is any default in repaying the loan, the repayment will become the burden of the family members. If the family members are not able to fulfill that obligation, they may face consequences like bank foreclosure. Care should be taken to ensure insurance coverage in anticipation of such risks.

Interruption of EMI repayment can be due to two reasons. The first is the death of the borrower. The second is the loss of physical ability to work due to illness or accident. Insurance coverage is required to deal with both of these situations.

Term insurance policy is a way to prevent loan default due to the death of the borrower. Term insurance is one of the basic types of insurance that an individual needs. Life insurance fully fulfills the goal of maintaining the financial status of the family in the event of untimely death of the family’s main source of income through term policies aimed at higher insurance coverage.

Term policies with the sole purpose of life insurance are available at a relatively low premium compared to insurance. Nominee will receive Sum Assured in case of death of the insured.

Coverage should be ensured through the Critical Illness Plan in case of loss of physical fitness for work and income due to illness or accident. Term plans include term policies that have Critical Illness Rider. Such riders pay sum insured in case of serious illnesses such as cancer and heart disease. There are also riders who pay a fixed amount per month.

Double term coverage is unavoidable for double income families. When both spouses earn the same amount of income, both need protection equally when they take out joint loans and other things like loan repayment.

Since the death of one of the life partners can affect things like loan repayment, both parties definitely need to ensure protection. So both parties need to have a term plan and a critical illness plan.