Five years ago, 35-year- old Satwik availed a home loan of Rs. 50 lakhs for a loan tenure of 20 years. He is self-employed and runs a successful battery business. Understanding the associated risks in the business, Satwik also bought a pure term insurance life cover of Rs. 1.5 crore for 20 years at the time of securing the home loan. Unfortunately, Satwik died of a sudden cardiac arrest His aged parents were his only dependents. The loss of their grown-up son was irreparable and unbearable for them in their old age, and a home loan repayment would have only added to their financial woes, had the term insurance cover not been in place. Luckily, the term insurance death benefit of Rs. 1.5 crore helped Satwik’s parents clear the outstanding home loan while providing them financial security.

Owning a home is surely an essential financial milestone to achieve in an individual’s life but buying a house is also increasingly expensive. It demands regular savings across years, a steady source of income and long-term financial planning . The skyrocketing property prices, especially in the urban landscapes have left prospective home buyers with no choice but to avail a home loan to fulfil this wish of becoming homeowners. Home loans are long-term commitments, usually spanning 20-25 years. Lenders normally offer home loans to customers depending on an individual’s regular income and his/her ability to repay the loan in equated monthly installments (EMIs) during the loan tenure. However, life gives no guarantees and an unexpected demise of a borrower may put a huge monetary stress on his surviving family. In such cases, a pure term insurance plan for a home loan is very much essential to shield the borrower’s family from the financial burden of paying the outstanding home loan, in case of his/her demise.

Reasons To Consider Buying a Pure Term Insurance Plan for Home Loan Borrowers

Although it is not mandatory to insure a home loan, it would be a wise decision to opt for this plan. Here are a few compelling reasons why:

How to choose the right term pure insurance plan for home loan

As a home loan borrower, one must assess the short-term as well as long-term costs and benefits of opting for pure term insurance over the regular home loan insurance plans. Rather than blindly trusting what the lenders might utter, it is important that the borrower does a bit of his own research on the term plans that can suitably cover the home loan liability along with other financial obligations in his absence.

The Generali Central Care Plus offers life cover is up to 85 years of age and the maximum age for entry into this plan 65 years. Thus, it can offer ideal protection for a home loan. This plan is also available at much lower premiums for women policy subscribers. For example, Anita(35 years old) can choose to pay a small annual premium of Rs 8250 (without GST) for a sum assured of Rs 50,00,000. This will give her a coverage till she is 60 years old. If Anita has a home loan then Generali Central Care Plus can provide financial security and peace of mind to Anita and her loved ones.

Hence,a pure term insurance plan for to secure home loan, allows a policyholder to invest in a house with the assurance that he/she can be prepared for tomorrow’s unexpected challenges.

Generali Central Care Plus: This is an Individual, Non-Linked, Non-Participating (without profits), Pure Risk Premium, Life Insurance Plan. UIN: 133N030V06.