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.
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