Insure your home loan to secure your home against unfortunate event

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Home loans are meant to build the dream home which is otherwise unaffordable. The home loans are made affordable by the banks and that is the reason why home buyers opt for bigger EMIs that cover more than 50% of their monthly income. This is quite a big amount and hence it is important to insure the home loan as well. The home loan insurance is offered by many private and public sector banks at affordable premium.

The home loan insurance can be availed for constant sum assured or reducing sum assured. The constant sum assured will remain the same for the entire loan tenure and in case something goes wrong with the insured then the sum assured pays for remaining home loan while saving the rest for the family.

The reducing sum assured home loan insurance may reduce the sum assured proportionate to the remaining home loan. The premium may also reduce in this type of insurance and the insured may be required to shed less from the pocket. In this type of insurance, the insurance company will pay out the remaining home loan from the sum assured. This loan works just to cover the home against mortgage in case the insured fail to pay the remaining EMIs due to any unfortunate event.

The home loan insurance may also offer EMI payment in case of permanent disability of the insured. If the insured is not in a position to earn the livelihood due to disability then the certain percentage of sum assured pays for the home loan. The critical illness cover is also offered in this type of insurance.

If you are proud owner of your home with hefty EMIs then opt for the home loan insurance to cover your dream forever.

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