Home Loan Insurance or Term Insurance: Buying a house is everyone’s dream. People work very hard for this. They save a lot of money. Then they are able to buy a house. But there are many people who do not have enough money to buy a house. So in such a situation, home loan helps these people. There are many banks in India for home loans. Along with this, non-banking financial companies are also present.
But after taking a home loan, people often face difficulties in repaying it. For this, people take the option of security. In terms of security, you have two options. Which include term insurance policy and home loan insurance. Is term insurance better than home loan insurance? Let us tell you the answer.
Home loan insurance or term insurance, which is more beneficial?
Whenever you take a home loan, you have two options for its security. One of them is term insurance and the other is home loan insurance. Home loan insurance is generally called Home Loan Protection Plan or HLPP. If we talk about whether term insurance or home loan insurance is better for you, then it depends on the cost of your premium. In term insurance, you have to pay money at intervals.
That is, the type of insurance you take has its premium amount. Similarly, there is a premium in term insurance. Whereas in home loan insurance, you have to pay the premium in one go. If we talk as an example, if you take a cover of one crore, then you may have to pay Rs 50000 under home loan insurance. Whereas in term insurance, you have the option of paying premium from Rs 8000 to Rs 15000.
Term insurance is better
If we look at term insurance and home loan insurance, you benefit from term insurance because you get many such benefits in it which are not available in home loan insurance. If we talk about life cover in this, then the person who has taken a term plan, if he dies due to any reason, then the amount of insurance cover is given to his family.
So that they can repay the home loan. And can use the remaining amount for their own use. But on the other hand, if someone has taken home loan insurance. And he dies due to any reason. In such a case, the company only repays the home loan. It does not give any separate amount to the family. For other comparisons, you can also take advice from an expert.
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