Owning a home is one of the milestones that many of us want to achieve. However, with buying a house also comes the liability of paying off the home loan. This in fact puts pressure on us to save every bit of our income and repay the loan as soon as possible. However, even when we have a home loan, the uncertainty of life still remains, and we should be prepared for any kind of event with all the possible measures. To effectively deal with any such case, buying term insurance can be a prudent idea.
Well, many people think that a term insurance plan can be an added liability on their shoulders and it can put a lot of additional pressure on them. However, seldom do we realize that term insurance plans can actually come as a great help in a situation of our early demise. For example, if we pass away within the tenure of the term insurance policy, our family will at least be able to pay off the home loan and can be free of the debts. As a matter of fact, if you have a home loan to pay off, you must buy a term insurance plan as well. Let us first understand why it is so.
Affordability
Term insurance plans are quite affordable. You do not have to pay a big chunk of money every month for this policy; instead, you can pay a very minimal amount half-yearly or annually. And to get the best benefits of term insurance plans by paying lesser premium amounts, you can choose from the various term insurance policies available online.
The lenders can be changed with a term insurance plan
If your current home loan lender does not allow loan foreclosure, the existing home loan can be changed from one lender to another. Even after you repay the entire home loan, your family will still be able to get the life cover offered by the term insurance plan.
Term plans come with additional benefits
Various term plans come with some extra benefits, which are also called riders. These riders provide additional benefits to the insured and in case of an uneventful situation; the beneficiaries can get an extra bit of funds to pay off the loan.
Some of the term insurance plans that you can opt for:
Bajaj Allianz Life eTouch Online Term Plan
This Bajaj Allianz term insurance plan is non-linked, non-participating, and a pure protection plan which offers life coverage to the insured till the age of 99 years. In addition to the life coverage, it also offers you the option to choose between limited or regular premium. You will come across four variants of this term plan, such as Shield, Shield Super, Shield Plus, and Shield Supreme. This is one of the most affordable term insurance plans, and you can buy it without any difficulty.
Bharti Axa Flexi Term Plan
This again is a pure protection plan that offers coverage up to the age of 75 years. The term insurance plan has been very carefully designed and offers all-inclusive life coverage against any uneventful situation. With this plan, you can get three benefit payout options which include Lump sum, Monthly income, and Lump sum.
Aviva LifeShield Advantage Term Plan
This term insurance plan offers two options to its policyholders, which include Life Protection and Life-cum-disability protection, which also comes with a return of premium. In addition to this, the term plan also covers death or permanent disability which is the result of an accident. You can also get maturity benefits from the premiums that you pay.
Canara HSBC OBC iSelect Star Term Plan
The term plan offers three variants, including Plan Option Life Plus, Plan Option Life, and Plan Option Life with Return of Premium. You will also get the flexibility of choosing between various premium payments and options of payout. The minimum entry age for this plan is 18 years, while the maximum entry age is 65 years. Along with all the other benefits, you can also get other benefits such as spouse coverage and an increase in life cover at a reasonable price.
There are several types of term insurance plans and you can choose the one that you think is ideal for you. And to make a comparison between the various term plans, you can visit the website of IIFL.