Seeking Home Loan Insurance
Home Loan Insurance
HDFC also advises customers on other aspects of taking a Housing Loan such as protecting the home loan through insurance. When a customer takes a home loan they enter into a long-term financial commitment as home loans are for long durations up to 20 years. In case of any eventuality during this period, it is better to make sure that the family is not burdened with the loan liability. Hence, to take care of uncertainties during such a long period, HDFC with the help of its group company HDFC Standard Life Insurance offers a Home Loan Protection Plan, specially developed to suit home loan customers.
This plan ensures that the outstanding loan, up to the amount insured, is repaid in the event of death of the borrower, which is a huge security during the term of the loan. This plan is a single premium decreasing term assurance plan and so as the loan amount diminishes on getting repaid, the sum assured also reduces in the same proportion. This ensures that the customer only pays for the protection that is required and does not end up paying additional premium.