Hey there! I purchased a home loan insurance policy at the time of availing a loan from Axis Bank, and I can give you a bit of information on housing loan insurance coverage. While home insurance protects the property itself, home loan insurance focuses more on loan security and protects against the financial liability of the home loan. There are many risks associated with a home loan and having insurance is beneficial in such cases.
What is the Home Loan Insurance Coverage?
The main purpose of home loan insurance is to cover the outstanding loan amount in case the borrower faces any unforeseen event.
Here are a few things you should know about home loan insurance if you’re planning to take the policy.
The main coverage of this insurance is paying the remaining outstanding balance in case of death. This actually prevents the family from financial burden.
It also offers critical illness coverage, which basically means if the borrower is with a critical illness like cancer, that can hamper their ability to work and meet the mortgage payments, the insurance will help cover the remaining balance.
When you make a claim on a home loan insurance, the insurance company will settle the amount directly with the lender.
Another good thing is that the coverage duration is flexible, which means the term of the insurance policy matches your loan tenure.
That’s all about what does home loan insurance covers. You can reach out to your lender for more accurate details.
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What Does Home Loan Insurance Cover?
Surbhi7
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2025-03-24T09:25:35+00:00 2025-04-01T13:28:05+00:00Comment
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