• About Us
  • Our Partners
  • Become an Advisor
  • NRI
  • QROPS
  • Careers
  • Alumni Portal
  • Public Disclosures
Select a language English
  • Pay Premium
  • Get Quote
    Buy Now
    Smart Term Plan Product of the year 2019 Term Insurance Product of the year 2019
    Get quote of smart term plan Buy Now Smart Term Plan

    97.03%** Claims settled in FY 2018-19

    *conditions apply

    **Total number of claims settled V/S Total number of claims reported

  • Our
    Products
    • Protection Plans
    • Savings & Investments
    • Retirement & Pension
    • Group Business
    • QROPS
    • MS Dhoni Exide Life Insurance
    • 1 Crore Life Insurance Plan
      Get Quote Buy Now
    • Heart and cancer cover
      Get Quote Buy Now
  • Our
    Funds
    • Fund Fact Sheet
    • Market Review
    • Check NAV
    • Market Highlights
    • Annual Fund Review 2018-19
  • Knowledge
    Center
    • Blogs and Articles
      Term Insurance early bird offer

      With Term Insurance - It pays to be an early bird

      View All

    • Video library
      ULIP Exide Life Insurance

      Unit Linked Insurance Plans (ULIPs) With Power of 5 Benifits

      View All

    • FAQ
      NAV FAQ

      What is the claims process at Exide Life Insurance?

      View All

  • Planning
    Tools
    • Calculate How Much
      Life Cover You Need
    • Risk Analyser
      Life Insurance
    • Child Education Planner
      Number
    • Know Your Retirement
      Number
    • Investment
      Calculator
  • Customer
    Service
    • Premium Payment Options
    • Self Service
    • Instant Sign up for Direct Debit
    • All Claims
    • Download Center
    • Track application

      Track your Application

    • Track Your Claim

      Track your
      Claim

    • Track your service

      Track your Service Request

Eng
Pay Premium
  • Our Products
  • Our Funds
  • Knowledge Center
  • Planning Tools
  • Customer Service
  • About Us
  • Our Partners
  • Become An Advisor
  • NRI
  • QROPS
  • Careers
  • Alumni Portal
  • Public Disclosures
  • Share via:
    • Home/
    • Knowledge Center/
    • Blogs and Articles/
    • A simple term insurance plan can help
  • Categories:
  • Term Plan
  • Health Plan
  • Savings and Investments
  • Retirement
  • Tax Planning
  • Services
  • All

Protect your Home Loan with Term Insurance

Term Plan
Likes
Shares
    • A home loan is one of the most important loans for any individual who wishes to get a house
    • A term plan can act as a backup to cover your home loan when you are not there
    • Plan your coverage meticulouslyThe pay out of a term life insurance can be used to settle the outstanding home loan amount and other financial liabilities
    Protect Home Loan with Term Insurance Plan

    For most of us, owning a home is a key financial milestone that warrants years of savings, a stable income, and long-term financial planning. The astronomical real estate prices, especially in the metros and major towns, have compelled buyers to avail housing loans to fulfill their dream of owning a house.

    Lenders usually finance up to 80% the cost of the property, while the remaining 20% is paid by the borrower as down payment. In addition, there are several add-on expenses related to registration, stamp duty, society transfer charges, interiors, and decor, etc. Prudent financial planning suggests that the loan Equated Monthly Instalments (EMIs) should not exceed 50% of the borrower’s monthly income. This helps ensure that your budget is not stretched thin and you are able to comfortably meet your monthly household expenses.

    Why Should One Cover Home Loans?

    Home loans are long-term contracts, usually stretching up to 20 - 25 years. The arrangement is based on the fundamental assumption that you will be working throughout the loan repayment period and there will be a regular income. However, life is uncertain. In case of an unforeseen event that cuts off the regular income the burden of EMIs might become a financial burden to your family. A home loan of ₹ 30 lakh, for example, availed at 8.3% interest for 20 years will put a commitment of over ₹ 25,000 to be paid in the form of EMI.

    That is why covering the loan is highly recommended. In case of an early demise of the borrower, the proceeds from a life insurance plan forms a shield that protects your family by helping them pay-off the outstanding home loan.

    Here are some more compelling reasons to consider term life insurance especially if you have availed or are planning to avail a home loan:

    A Large Cover For A Small Premium

    If you have a home loan, you should consider getting an equivalent life cover. Term life insurance, being a pure protection plan, is one of the most affordable life insurance plans that can give you a large cover. By paying a small premium, you can avail the cover that will bring you peace of mind and protect your family in case of an eventuality.

    Term Insurance Comes with Fixed Benefit

    Several lenders offer life insurance cover that works as a home loan protection plan. Their cover is relative to the loan repayment schedule. As you keep on paying and the outstanding principal amount reduces, so does the life cover. Their purpose is to secure the loan, not your life!

    However, unlike a loan protection plan, the sum assured for a term life insurance plan remains fixed throughout the policy. The pay-out can then be used for repayment of not just the home loan, but also to meet other financial obligations by your family in your absence.

    Term Plan Supports During Home Loan Transfer

    When you avail a term life insurance cover from a life insurance company, the benefits stay with you irrespective of the lender. Even if you decide to transfer your home loan from one lender to another, your life cover remains intact and you do not need to re-apply for the same. Even after the loan term is completed, the family can continue to enjoy the coverage offered by a life insurance policy. This works as a safeguard for any other loans, liabilities, outstanding or financial goals.

    Related Articles

    Pick your term insurance policy period smartly with these 3 suggestions

    Choosing the right term policy period is a combination of factors like ..

    Term Plan

    Term insurance: A favourable tax saving instrument

    Term insurance offers tax benefits U/s 80C on insurance premium paid fo..

    Term Plan

    Thinking of buying a life insurance policy? Never skip Medical Tests

    Medical examination can help get an accurate assessment of your current..

    Term Plan

    You may also like this

    Term Insurance Plan

    Exide Life Elite Term Insurance Plan

    Here is a plan which helps you build a strong financial foundation to protect your family’s future even if you are not around.

    Read More
    • Key Links

    • Buy Online
    • Buy Term Insurance
    • Buy Zero Cost Term Insurance
    • Buy Heart & Cancer Insurance
    • Buy Comprehensive Protection
      Solution
    • Get a Quick Quote
    • Term Plan Calculator
    • Heart & Cancer
      Insurance Calculator
    • Call Now
    • To Buy Policy Online : 1800 419 0808
    • For Policy Servicing : 1800 419 8228
    • Life Insurance Plans
    • Term Insurance Plan
    • Term Insurance Plan with Return of Premium
    • Term Insurance with Riders
    • Critical Illness Insurance
    • Term Insurance Comparison
    • Child Plans
    • Child Future Plans
    • Child Insurance Plans
    • Child Investment Plans
    • Service
    • Track your Application
    • Track your Claim
    • Track your Service Request
    • Investment Options
    • Savings Plans
    • ULIP Investment
    • Guaranteed Income
      Insurance Plan
    • Endowment Plans
    • Endowment Assurance Plan
    • Long Term & Short Term
      Investment Plans
    • Investment Insurance Plan
    • Secured Income Insurance Plan
    • Unit Linked Insurance Plan
    • Tax Savings Investments
    • Health Insurance
    • Heart & Cancer Insurance
    • Retirement & Pensions
    • Retirement Plans
    • QROPS
    • Pension Plan
    • About Us
    • Insurance Products
    • Savings & Investments
    • Brand Endorsement
    • Product Brochures
    • Forms
    • My Money Book
    • Claim Forms
    • Have Queries?
    • FAQ
    • Contact Us
    • Blogs and Articles
    • Video Library
    • Security Tips
    • Privacy Policy
    • Tax Center
    • Withdrawn Products
    • Sales Illustrator
    • My Connect
    • About E-insurance
    • Terms of Use
    • New Business Premium
    • IRDAI
    • policyholder.gov.in
    • Member of the Life Insurance Council
    • IRDAI IGMS
    • Modification in NAV Computation
    • Grievance Redressal
    • Disclaimer
    • DNC (Do Not Call)
    • Intellectual Property Rights
    • Phishing
    • API & Development

    IRDAI notice : Beware of Spurious/ Fraud Phone Calls: IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

    Exide Life Insurance Company Limited.
    IRDAI Registration Number: 114, CIN:U66010KA2000PLC028273
    Registered Office: 3rd Floor, JP Techno Park, No. 3/1, Millers Road, Bangalore- 560 001, India.
    2019 Exide Life Insurance Company Limited. All rights reserved.

    • IRDAI Public Notice on Spurious Calls
    • Sitemap
    • FAQ
    • © 2019 Exide Life Insurance Company Limited
    loading

    Please rotate your screen for
    optimal experience

      • Share via:
    Buy Now :
    • Term Insurance
    • Heart & Cancer Insurance
    • Locate a Branch
    • Meet an Advisor
    • Contact Us
    • Locate
    • Meet
    • Buy