"If something happens to the main borrower and the family can't afford to pay the EMIs, they can be evicted from the house," says Suresh Sadagopan, a certified financial planner and founder Ladder 7 Financial Advisories.
You can cover your home loan by choosing one of the options: - Home loan Protection Plan (HLPP) and other is Pure Term Cover which is recommended by the Financial Advisors.
"HLPP, often sold along with the housing loan, offers a risk cover (sum assured) equal to the loan amount. As the outstanding loan amount reduces, the size of the cover also reduces," says Pankaj Mathpal, certified financial planner & Managing Director, Optima Money Managers.
In case of a term cover (of Rs 50 lakh), the family would get the entire sum assured of Rs 50 lakh. "Even after settling the loan amount, the family can still make a saving of Rs 9 lakh," says Pankaj Mathpal adds.
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