Why is a Term Insurance Plan Right for Home Insurance Buyers?

One of the big life goals we set for ourselves is to acquire a home. To accomplish this remarkable milestone, many of us take out loans and even put our life savings and future wages on the line. However, if we are unable to repay the property loan, our fantasy may come crumbling down. A term insurance plan can help in this situation. But before learning about the importance of a term insurance plan for home insurance buyers, let's learn about term insurance plans. 

What are Term Insurance Plans?

Term insurance is a type of life insurance that provides coverage to the insured person's nominee for a set period of time. If you die unexpectedly during the policy period, your beneficiary will receive the insured money as a lump sum or monthly payments. The beneficiary receives the entire cash in one go, and the contract is cancelled in the case of a one-time payment. The death benefit is paid in instalments over time in the event of a monthly fixed payment. It provides your family with a consistent stream of money.

Why is a Term Insurance Plan Right for Home Insurance Buyers?

Loans have made it considerably easy to enjoy the convenience of a large house and car these days. However, taking out a loan entails a significant amount of responsibility in terms of timely repayment. To pay the equated monthly instalments (EMI) on time, you must strategize and keep a close eye on all unnecessary expenses as an investor. However, you must remember that the loan must be repaid on time, even if you are not present. If something tragic happens to you, you must make plans to ensure that your family and property are safe. Term insurance can be helpful in this regard.

In the case of your untimely death, a term plan financially protects your family by paying off any current debts. In the market, there are several term insurance products to choose from. When it comes to home loans, you should choose a term plan that pays at least 10 times your annual income in addition to the loan amount. A ubiquitous coverage of up to Rs.1 crore is possible. The cost of the premium is fairly affordable. Premium charges, on the other hand, differ from borrower to borrower. Income, age, and lifestyle all have a role in determining the amount.

Endnotes 

Before making a decision, you should compare various plans, their premium rates and advantages linked with them, as well as the policy's inclusions and exclusions. Although banks offer term insurance in conjunction with home loans, you should be cautious before obtaining it. There would be an additional commission because banks are also acquiring insurance from a third party. It is advisable to spend some time comparing premium rates from several providers (both offline and online) and choosing the most economical one for you.

Also read: Term Insurance Plan for All Age Group

Can I Buy A Term Insurance With Income Proof?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.