Yes, you can insure your home loan. Almost all the banks and NBFCs give home loan insurance along with the loan. Some make it mandatory to get a home loan insurance from them but you can check if the lender is giving you the option to get it from other insurance company as per your choice. So, the answer to whether or not your home loan insured is found.
Now, why should you consider home loan insurance? There are some very important benefits such as:
- In case of an emergency such as long-term illness or accidents or loss of job, your home loan insurance company will take care of EMIs. So, your payments won’t stop which means you will be relieved that your house can be taken over by the lender.
- Since home loan EMIs won’t stop, your credit score will not be affected which is another important advantage.
- Even for joint loan borrowers, joint loan insurance plan is available. So, if any of the applicants is unable to pay EMI, your home loan EMIs won’t be affected.
Thus, home loan insurance is going to be beneficial even though it might be an additional expense. Not to forget, you get to save Rs. 1.5 lakhs on a home loan via tax saving option. So, why not use some money to protect your home loan?