Do you think the massive interest rate on your home loan is the only cause for concern? If you are the sole bread earner for your family, you can add one more worry. Imagine a situation where you meet with an eventuality and your dependents are burdened with the home loan.
While you can do little about the home loan EMI, fortunately, you can guarantee your family isn't paralysed by the crushing financial liability.
This purpose can be fulfilled by an online term plan. An online term plan is the most comprehensive form of financial protection for your loved ones, which helps them meet financial needs from household expenses to rentals in your absence. Moreover, it helps your loved ones to overcome the financial trauma which has arisen because of your unfortunate demise.
For those who have purchased an online term plan, it is recommended to increase the term coverage when you take a home loan because it can help secure your liability even in your absence.
All said and done, increasing your term cover when you avail a home loan will ensure that:
Your Dependents Do Not Have to Bear the Burden Of Loan in Your Absence
Availing online term insurance by paying small amount of premium monthly or annually ensures that your loved ones do not face the burden of your liability in your absence. With a term plan by their side, if anything happens to you during the tenure of the loan, your home loan liability is secured.
The lump sum amount received as the death benefit helps to pay back your outstanding home loan to the bank. This implies your family members are secured and don't need to stress over loan repayment, or a possible house auction by the bank to recuperate its dues.
Your Family’s Goals and Lifestyle are Not Affected In Your Absence
Having access to term insurance benefits can lessen financial worries and help to fulfill the goals of your loved ones. This Specifically includes goals like your children’s education, their marriage, funding their start-up or simply being able to maintain their present lifestyle in your absence.
The online term plan must help secure:
- Your Future Income
- Your Existing Loans/Debts/Liabilities
In case you don’t have a term plan in both the above cases, your family may have to start liquidating existing assets. Hence, it is strongly advised that both your income and well as home loan is adequately covered by a term plan.
People mainly perceive online term plan to be a product that simply covers their expenses on behalf of the breadwinner of the family. Indeed, that's the main agenda behind buying online term insurance. But, it's not the only way that this insurance can eliminate the possibility of financial losses.
Purchasing or increasing your term insurance coverage when you request a home loan is essential and makes a lot of sense.
In simple words,
“Let your family inherit your home, not your home loan.”