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Why Term Insurance is a Must for those who are planning on taking a Home Loan?

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Building a home is a dream come true for many families. Brick by brick, you put together your comfort zone with utmost love and care.

But what if something unfortunate happens to you and you leave your family with huge home loan debts? This could be a nightmare for many, but term life insurance could be an answer here.

What is a term plan?

A term life insurance provides the beneficiary with financial aid in case if the insured passes away. This helps the beneficiary, which is most often a family member, financially remain stable after the loss of an earning member of the family.

Why should you get insured before taking a home loan?

A home loan can be a big debt. You might have calculations that will work out if things go well. But, as we all know, life can be unpredictable. Let’s see how term insurance can help in these dire situations.

  • It will protect your family.

If you, unfortunately, is not there to take care of the loan, a term life insurance will make sure your family gets the help. It will financially protect your family to steer through the hard times as well. If you have children, this will protect them from a potentially huge debt.

  • It gives you the peace of mind.

While being no more is something none of us plan, there is no way we can control that. This could be a matter of concern for many of us while loaning a big amount. A term insurance can give you the peace of mind you deserve in times like these.

If you have a term insurance, you will know that even if something unfortunate happens to you, your family won’t be scrambling for money to pay back debts.

  • It gives you the flexibility to do more.

With peace of mind comes flexibility. You will always postpone that expensive vacation you deserve if you’re afraid of how your family will manage the liability in your absence. If you have a proper online term plan, you will be sure that even if things don’t go according to your plans, your family will have a back-up and they will be financially safe. This gives you the flexibility to explore more and take more risks which are essential for a happy life.

  • It assures your children the education they deserve

With a term insurance, you are assuring financial support for your child’s education even for a stage where you cannot provide for them. Not only that, it will help you keep your children debt-free and not be bothered by your debts at a very young age if something happens to you. In this case, even if you have to leave them behind, they will have proper shelter, financial support to survive and get a proper education.

You could also go for riders that protect your children, with your term plan for additional protection.

Things to consider before choosing a term plan before a home loan

  • Make sure you are well-versed with the nuances of term life insurance and your family also understands enough to answers the below three important questions-
  • What is term plan?
  • How to claim a term insurance?
  • What are the riders you have added?
  • Make sure your life insurance sum is more than your home loan amount. Also, make sure your insurance tenure is more than the loan’s tenure.
  • Use a term insurance plan calculator to understand your insurance needs and plan it accordingly before you take the home loan.
  • Research and add the riders that you think are helpful.

How to get term life insurance online?

Most of the insurance providers have an online term plan as well, which carries the exact same benefits as an offline one. You can just go to their website and start the registration process. You could also check out their term insurance plan calculator to plan your term insurance.

You build your home for your family, and making sure they don’t suffer financially because of it is of utmost importance. If you are planning to take a home loan, getting insured as soon as possible is a very wise idea.