Which is best insurance scheme "Home loan insurance or Life Term Insurance to protech Home loan?

sharan - 2009-05-22 02:57:44 - Insurance

I am having Home loan 20 lacs and would like to protect the risk. Could you suggest which is best insurance scheme " Home loan insurance (Protecting home loan alone) and Lime Term Insurance (protecting like not home loan). I want to know the premium which one is lower and benefit one?

Best Answer:

your asking whats the best policy to get, since that your home is under home mortgage or acquired through loan, precisely you have still a balance payable in the form of monthly amortization. I would suggest you get a mortgage redemption insurance (mri) to protect your heirs from the burden of assuming your loan balance should something happen to you. it is also quite practical to get a life insurance whether permanent or term for your family's protection that will also include of course health benefits. mortgage redemption insurance is not that so expensive compare to life term insurance, however, life term insurance is much cheaper compare to permanent life insurance and base on my profession as underwriter, the expensive type of insurance is the medical or health insurance ( HMO )

Answer:

your asking whats the best policy to get, since that your home is under home mortgage or acquired through loan, precisely you have still a balance payable in the form of monthly amortization. I would suggest you get a mortgage redemption insurance (mri) to protect your heirs from the burden of assuming your loan balance should something happen to you. it is also quite practical to get a life insurance whether permanent or term for your family's protection that will also include of course health benefits. mortgage redemption insurance is not that so expensive compare to life term insurance, however, life term insurance is much cheaper compare to permanent life insurance and base on my profession as underwriter, the expensive type of insurance is the medical or health insurance ( HMO )

I wouldn't buy anything referred to as a 'scheme' personally. Life insurance allows you to decide what to do with the money so it's a much better option.

Hi. I'm a Wealth Manager in Inference Wealth Management Services Pvt Ltd. Mostly the Company which has given you a home loan must have made you sign for home loan insurance. Its general practice without which many banks don't give home loan so first please check your home loan documents that if they have given you home loan insurance or not. If not then please do go for Life Term insurance and that too take it in 4 parts i.e. 4 policies of 5 lakhs each. So you can keep on closing the policies one by one when your principal amount in the multiple of 5 lakhs are paid back.

Term Life Insurance is the best option. The death benefit does not decrease and your beneficiary can use the money any way they want.