Get your home loan insured

Home loan insurance is as important as a home loan itself, most of the people are concerned about the home loan and once they succeed in borrowing they get relaxed and their home loan is what they bother about but a home loan insurance is also an essential part of a home loan.

In case of demise of the borrower of a home loan it becomes the responsibility of the family to repay the loan and in most of the cases the families are found jostling because of the double whammy, basically the family members are left to face the consequences and most of the times they have to face foreclosure.

Home loan insurance provides the security from the threats posed by any such situation, if a person has got his home loan insured then the insurer is responsible to repay the remaining home loan amount in case of beneficiary’s demise.

There are few variants available of home loan insurance schemes out of which a person can choose from, most of the lenders repays the pending loan amount but a scheme offered by ICICI Lombard covers a certain amount and when required the insurer pays the pending loan amount and the remaining amount is paid to the family.

Apart from security that this security provides the beneficiary can avail tax benefits as it is categorized under life insurance and under section 80C income tax deductions can be claimed; but this facility lapses in case the borrower has clubbed both Insurance Premium with the monthly installments.

How you can customize your home loan?

One of the fruits that the evolution in the housing loan sector has yielded for the borrowers is choice. A person has a fairly good amount of options available for the home loans from which he can choose. Several other sub categories have also come into existence like the home improvement loans and reverse mortgage loans.

The situation and the requirement of the borrowers can very form each other in infinite ways and so it was obvious that only one particular loan scheme can never serve the purpose for each one of them, hence a lot of changes were brought around the home loans and have actually proved to be efficient to lure more customers.

Now a person has a choice to tailor his loan scheme in the way he wishes to, there are of course some restrictions but still it is a fair enough deal. A person knows his situation the best and he should be the one to make a decision on the features of the loan and so by considering the future prospects and his requirements.

After one has borrowed the loan, the most critical part repayment still remains and in this category there are a lot of options available. Like for a person in the initial stage of career can opt for a scheme in which the amount of the monthly installments is lower in the early part of the career and as the career of the borrower improves the amount increases eventually.

Also for the older people that are nearing their retiring age they can make high payments in the initial loan period, so that they do not have to bother much about the repayments in the later stage of the loan where they would also be left with a few years at their workplace.

Each lender has something new to offer and a borrower just need to search for the right palace where he can get what he is looking for.