15 October 2010
Home Loan Redemption Insurance
Home loan redemption insurance is a very important facility which can help during any unexpected crises or untimely death of the borrower. The family does not have to face the financial pressure of repayment of the loan. This is also a type of insurance taken during the purchase of home and applying for a loan.
One does not understand the importance of this insurance and many of individuals shy away from this topic due to the increasing total amount of repayment along with the insurance amount. This does not allow the individual to think about such circumstances that happen unexpectedly during the repayment tenure. Due to circumstance of financial crises, sudden death or accident of the home owner it may bring the family in a tight financial crises. Loan repayment may become impossible for the surviving spouse and may also lead to vacating the present home due to non-payment of loan amount. The lending financial institution may have the option to sell the property or other means for loan recovery. If this is not possible the family may have to vacate the house.
Here a presence of mind on part of the earner and borrower counts. If there is only one earner in the family it is best to go in for a home redemption insurance. A small amount is increased for payments every month and though it may give a pinch to the pocket it goes a long way in securing the safety and security of their family. Monthly payments of the insurance are cut along with the loan repayment EMI’s. The benefit of this insurance is that on untimely death of the borrower the insurance company pays the remaining loan amount and the other spouse and family may not have to let go the house.
Even though most of the times it is not required but it is always advisable to keep in mind the changing situations in our lives. Nothing is stable and economy also keeps changing. The priority of every individual must be safety, security and peace of mind of family members. Taking a home redemption insurance policy goes a long way in keeping life stress free and covering the aspect of the unexpected future.