There are several customers or borrowers who think that taking home loan insurance is a mandatory factor but this is not true and this is far away from the truth. Yes, this is true that it is advisable to purchase home loan insurance but this is not mandatory.
Importance of home loan insurance:
Home loan insurance is basically a cover against the loan amount like unfortunately if the borrowers die during the loan repayment then the insurance covers the home loan amount. It also reduced the risk or loss even after the demise of the borrowers. In this special case, the cover is reduced year by year because it lapses by the time of full repayment of the loan.
Factors related to home loan insurance:
- Only home loans will be covered in this plan, not your home.
- Premium should be required to paid to purchase the policy
Factor influence the amount of insurance premium:
- Age is the major factor: Higher the higher will be the premium amount
- Amount of the loan: The amount loan is directly proportional to the premium amount
- Tenure: Premium will be more when tenure is longer
- Medical records: The premium will below for those who are quite healthy.
Conclusion: You can apply for a home loan before that think about the insurance for the home loan as it is not mandatory but if you wan then you can purchase it.
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