Term Insurance for Home Loan

Shalini and Gaurav have been married for three years. They have a cute little two-year-old son. Gaurav works in an IT firm whereas Shalini works in the admin department of a media firm. They don’t make a lot of money, however, they earn enough to fulfill their needs; they are a middle-class family.

Recently, Gaurav got promoted with an excellent raise in his monthly income. That’s when they decided to move from a rented apartment to an apartment of their own while they both had enough savings. They also needed to opt for a home loan to buy a house in a decent location of Mumbai.

A home loan of Rs 60 lakh got sanctioned, and now they both pay an EMI of Rs. 60,000 per month. Since the EMI amount was hefty, they had to curb their luxuries and only spend on necessities. Their savings were also exhausted while purchasing their dream house.

As time passed, managing EMIs, household expenses, and utility bills had become a monthly routine for both Shalini and Gaurav. One day, Shalini received a call where she got to know that a close friend of theirs had died in an accident involving a truck collision. He died on impact and left behind a grieving widow and a three-year-old daughter. He was a 30-year-old man with both responsibilities and liabilities. He was a breadwinner of the family and had both a home loan and a car loan. His spouse was devastated and she was struggling even to manage the funeral arrangements. She was at a complete loss as to how she would repay the banks; she was a homemaker and her husband wasn’t covered under any insurance plan. They had been struggling to make ends meet even before he died. The grieving widow didn’t know where to go; she had a toddler who would soon have educational expenses. A few relatives might have opted to help her, she may find a job in the future but that won’t make up for such huge EMIs and financial pressures. With her husband no more, she had faced an emotional loss and support; however, another major challenge she faced was financing.

This situation had shaken Shalini to her very core. Never had she ever given a thought to wake up to a life without her husband by her side. He was her pillar and imagining a life without him made her feel suffocated.

The Solution For Couples With Home Loans: Term Insurance For Home Loan

Shalini then thought what would happen to their little two-year-old son if anything unfortunate were to happen to either of them? She thought about the house loan, the regular expenses, their child’s education, their aging parents who lived in their hometown, etc. A sense of fear took over her. After a few days, she shared her fears with Gaurav. That’s when he told her not to worry; he had already purchased a comprehensive protection plan with a life cover of Rs 2 crore. So both Shalini and their son would not face financial challenges in his absence. Though Shalini sensed a feeling of guilt because she thought about losing her husband has crossed her mind, she also felt relieved that their son’s future is secured against all the odds in life. Shalini, then decided that she would also opt for a comprehensive protection plan because even her income partially contributed to their household expenses. Just like how they shared their liabilities and responsibilities. She wanted to ensure that they secure their child’s future also together.

No amount of money can replace you, but a smart decision through financial planning can mitigate your family’s financial challenges that may occur in the future. Term life insurance premiums are considerably low. Buying term insurance costs you nominally, but it will ensure that all your liabilities are taken care of. It will ensure that your dear ones are not burdened because of any home loan, car loan, or unforeseen expenses. You may not be able to eradicate the emotional stress; however, you can ensure that they are not financially stressed in your absence. Term insurance for home loans becomes the most suitable option for you. You can buy term life insurance online, and treat it as home loan insurance.

You work hard to bring a smile on your loved ones’ faces then why burden your family with financial problems in your absence if you can take care of their future financial problems today itself?

Chirag Iyer - BFSI Enthusiast

Chirag is a writer and an avid reader who loves to drink coffee! His other interests include boxing, karate, and singing.