{"id":6988,"date":"2022-10-01T13:19:11","date_gmt":"2022-10-01T13:19:11","guid":{"rendered":"https:\/\/www.homebazaar.com\/knowledge\/?p=6988"},"modified":"2025-01-13T09:13:53","modified_gmt":"2025-01-13T09:13:53","slug":"home-loan-insurance","status":"publish","type":"post","link":"https:\/\/www.homebazaar.com\/knowledge\/home-loan-insurance\/","title":{"rendered":"What Is Home Loan Insurance And Why It Is So Important?"},"content":{"rendered":"

What is Home Loan Insurance?<\/strong><\/h2>\n

\"What<\/p>\n

Another name for Home Loan Insurance is the Home Loan Protection Plan.<\/span><\/p>\n

Home loan<\/a> insurance is offered by almost every banking institution where the policyholder pays the lenders or bank the residual or balance of the borrower’s house loan insurance coverage amount in the case of unforeseeable situations, for instance, the death of a borrower.<\/span><\/p>\n

In simple words, in case of certain death, the home loan protection plan clears up the remaining amount of the home loan taken from a bank or any financial institution by the borrower.<\/span><\/p>\n

Typically, the loan term and policy term are the same.<\/span><\/p>\n

You can calculate home loan EMI on the EMI Calculator <\/a>and your eligibility using the Home Loan Eligibility Calculator.<\/a><\/p>\n

What are The Types of Home Loan Insurance?<\/strong><\/h2>\n

\"Home<\/p>\n

Three types of banks provide loans to home loan borrowers. These plans are categorised as follows,<\/span><\/p>\n

Plan for Level Coverage<\/b><\/p>\n

During the loan duration, the policyholder protection coverage doesn’t change.<\/span><\/p>\n

Plan for Hybrid Coverage<\/b><\/p>\n

During the first year of the loan, the coverage is finished. As the total loan balance falls over time, it starts to decline.<\/span><\/p>\n

Plan for Reducing Coverage<\/b><\/p>\n

Both the insurance and the remaining loan amount decrease with time.<\/span><\/p>\n

Why Home Loan Insurance Is Important<\/strong><\/h2>\n