Term Insurance for Home Loan | How Term Plan Helps in Paying Off Home Loan?
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?
  • 29th Oct 2021 |
  • 840

We all think about buying our own house at some point. This dream comes a step closer when we start earning. We think of everything, starting from the size of the house to the colour, the decor, and the number of rooms it will have. Unfortunately, the multiple responsibilities and financial burdens that come with adulthood make it challenging to fulfil this long-awaited dream. However, home loans become the facilitator that helps us achieve these goals.

When we invest in a home or a property and opt for a home loan, we are required to pay a certain amount monthly to the company from which we have availed of the loan. This long-term process requires thorough planning and stretches out to 20-30 years or even more. While we may have visions and goals for ourselves, we cannot tell what life has to offer in our journey. Hence, it is advisable to opt for home loan term insurance, which can help pay off the home loan debt so the family can keep the home bought for them.

What is a Term Plan?

The answer is quite simple when you ask, “what is a term plan?”. Term insurance means safeguarding oneself from a financial burden that may fall upon us in case of an unforeseen event. A term plan requires us to pay a certain pre-decided amount as a premium to the insurer for the maintenance of the policy.

How are term insurance policies and home loans related?

We can pair a home loan insurance policy or get term insurance for home loans. This implies that if in the duration of the payment of the loan, anything happens to the borrower because of which they are unable to work - this is specific to an accident, disability, demise, illness, and not the loss of job due to other reasons - the insurance will help their family, pay off the loan and secure them from a potential debt.

The family can use the amount invested in the term insurance for home loan to complete the payment of the loan, therefore promising a secure future for your family when there is no steady flow of income.

Why term plan is the best choice in paying off home loan?

Now that we have answered ‘what are term plans’ and ‘how do home loan insurance plans help you?’, let us look at why we should choose them in combination:

  • Term insurance offers premiums that are more affordable with higher coverage.
  • A term plan tied to a house loan typically features a mechanism where the cover lowers as the loan is paid off and is intended so that the cover is zero by the end of the term, leaving no balance.
  • In a term life insurance policy, the sum assured remains the same. Therefore, we get the balance amount after the payment of the home loan as well, which can be used to meet other needs.

The best home loan insurance policy in India ensures the most significant financial security for us and our loved ones, so choosing a suitable one becomes essential to making our dreams of having the ideal home come true.

So, now you know what is term plan and what its significance is for home loans. Whenever you are investing in home loan term insurance, you can secure the home loan by correctly calculating the amount of the sum assured that may be needed. To ensure this, it is recommended to opt for the best home loan protection plan with coverage of at least 10-15 times their annual income and add to it the amount of the home loan.

Kotak e-Term Plan

Download Brochure

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

5 Advantages of Life Insurance Going Digital

Benefits of Term Insurance with Critical Illness Rider

Important Terminologies of Life Insurance

ULIPs: Suitable for all

When are Millennials required to take out a life insurance policy?

Does Life Insurance Policy Cover Covid Death?

Term Insurance Vs Car Insurance: A Budgetary Choice You'll Regret

What Is Insurance Rider and It’s Benefits?

Role of IRDAI in the Insurance Sector

Think About Life Insurance Sooner than Later

When Should You Review Term Life Insurance of Yours?

Kotak Life Claim Settlement Ratio

Is It Advisable To Have Multiple Life Insurance Policies?

5 Things to Consider Before You Buy Life Insurance

Choose the Nominee of a Term Life Insurance Plan Wisely

How to Choose Life Insurance for All Ages?

Insurance Changes You Need to Make Post Marriage

Staying Insured While Investing

5 Smart Steps to keep in mind while buying term policies

Voluntary Life Insurance Policy Vs Group Life Insurance

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

5 Reasons Why You Need Life Insurance in College

Do Life Insurance Premiums Increase Every Year?

How to Buy a Life Insurance Plan?

10 Most Frequently Asked Questions - FAQs on Term Insurance

What Is the Procedure to choose a nomination in life insurance policy?

6 Different Types of Insurance Policies

Life Insurance for Overweight Applicants

What Is Social Impact Investing and How Does It Benefit Society?

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?

Nominee in insurance - A Complete Guide on nomination in insurance

What is Underinsurance & The Dangers of Being Underinsured

What are robo-advisors in insurance?

What Is Staggered Payment Option Under Term Insurance Policy?

Different Types Of Life Insurance In India

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

Beware of Phishing & Fraud Insurance Calls

Why Do Life Insurance Agents Avoid Selling Term Plans?

Why is Medical Test Important While Buying a Term Insurance?

In India, should NRIs purchase life insurance?

How to Find the Best Term Insurance Plan in Seven Steps

All about IRDAI

Life Insurance vs Health Insurance

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

Why do I Need Life Insurance?

How Much Life Insurance Costs and How Much Insurance Cover You Need?

How to Make Death Claims on Life Insurance?

Choosing the Right Life Insurance

What Should One Expect During the Medical Evaluation for Life Insurance?

Why One Must Buy Term Insurance before 25 Years

What Happens If I Stop Paying My Life Insurance Premium?

Should you buy a Renewable Term Life Policy?

All about Life Insurance Calculators

Difference Between ULIP and Endowment Plan?

Why Online Term Insurance Plans Cheap?

How to Revive the Lapsed Life Insurance Policy?

What Is a Whole Life Insurance Plan?

Customer Awareness on Information Security

Types of Life Insurance Policies in India

Insurance Vs Investment - A Guide to Your Financial Goals

Why You Should Buy Term Insurance under the MWP Act (Married Women’s Property Act)?

Why do most Indians choose the wrong way to buy life insurance?

Adding A Child to Your Life Insurance Policy?

How Much Life Insurance Cover Do I Need?

Do Your Financial Planning with Life Insurance!

What Is Insurance Coverage?

Can NRI Buy Life Insurance in India?

Life Insurance Vs. Mutual Funds Investment

Guide for Buying Online Term Insurance Plans for Senior Citizens

Term Life Insurance Vs Money Back Life Insurance

Difference Between Term Insurance and Endowment Plan

What is Group Insurance?

What is a Single Premium Term Plan and its Tax Benefit?

Compare Different Life Insurance Products Offered By Kotak Life

How Do Term Insurance Plans Differ for Smokers?

A Term Insurance Guide for Disabled People

भारत में जीवन बीमा पॉलिसियों के प्रकार

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

Is it Worth Buying Disability Rider on Term Insurance?

Why Term Insurance for Women is Important?

Process of Filing A Claim For Life Insurance

Health Insurance VS Life Insurance

Terms and Conditions of Term Insurance Plans

6 Things You May Not Know about Life Insurance

Life Insurance Policy Closure

All About Backdating in Life Insurance

Who Is A Nominee In A Life Insurance Plan?

Life Insurance Beneficiary

What is a savings plan?

Why Your Family Should Know About Your Life Insurance Policy?

Types of Life Insurance Or One Investment, Many Options

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

Does Life Insurance Pay for Suicidal Death?

What is Life Insurance?

Is Voluntary Life Insurance the Same as Basic Life Insurance?

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

Various Term Insurance Premium Payment Options Available in India

Why You Should Never Cancel Life Insurance Policy

Always keep your Nominee informed

A Step-by-Step Guide: How To Make An Investment Plan?

Can You Transfer Life Insurance Policies to Another Company in India?

Important Features of a Term Insurance Plan

Details Required To Be Filled In A Life Insurance Form

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

What Is Financial Planning?

How Many Insurances Should I Have?

Benefits of Buying Term Insurance Plan for Senior Citizens in India

Best Insurance Plans in India

9 Most Important Things You Must Learn About Paying Life Insurance Premium

“Life” Insurance or “Death” Insurance?

Term Life Insurance vs. Accidental Death Insurance

How To Use Different Types Of Life Insurance For Retirement Planning?

How Much Life Insurance Do You Need?

What is the Difference Between Limited and Regular Pay Insurance Plan?

What Is Investment Insurance?

Key Things to Review in Your Life Insurance Policy Document

Biggest Life Insurance Myths

How to Customize Your Life Insurance Policy with Riders

Why Renewal of Term Insurance Plan is Important

What is Minimum Life Insurance Policy?

Why Buying a Term Insurance is Important for all Parents

Loan Against Life Insurance Policy

Life Insurance with Money Back vs Without Money Back

FAQs on Life Insurance

Why Life Insurance Is Always a Smart Decision

Choosing Between Short-Term & Long-Term Insurance Plans

Reasons Why Term Insurance Claims Get Rejected

How Often You Must Review Your Life Insurance Policy?

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

Are Deaths Due To Coronavirus Covered by Kotak E-Term Plan?

5 Easy Steps to Buying A Policy

Guidelines for Linking Aadhar and PAN to Insurance Policies

How to Choose a Life Insurance Policy

First Job? Here’s Some Tips on How to Manage Finances

All about Your Rights and Duties While Buying Life Insurance Policy

How to Choose the Right Life Insurance Policy for Your Age?

How to Buy a Term Life Insurance Online

Choosing a Life Insurance Beneficiary

Savings cum Protection Plans Secures Your Family from Unforeseen Events

Top 5 Common Life Insurance Myths and Facts

5 Ways to ensure faster settlement of claims

What is an Endowment Plan?

Digital Life Certificate for Pensioners Seeking Pension

Is It Time to Review Life Insurance Policy of Yours?

Term Insurance Vs Life insurance: Small Details, Big Differences

Life Insurance and Millennials

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

What is Human Life value and a Human Life Value Calculator?

5 Reasons Why a Women Should Buy a Life Insurance

7 Superficial Reasons People Avoid Buying Insurance Online

Life Insurance Plans for Women

5 Common Life Insurance FAQs and Answers

Can a Term Plan be the Substitute for a Retirement Plan?

All About Life Insurance and How It Works?

Is Life Insurance For Millennials Really Needed?

Important Life Insurance Terms You Must Know

What is Sum Assured in Endowment Policy?

What is the Current Trend in Term Insurance?

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

5 Things to Keep in Mind While Buying Life Insurance Policy

4 Benefits of Gifting Life Insurance Cover to Your Spouse

Difference Between Money Back and Endowment Policy

How to Calculate Human Life Value(HLV)?

What are the Benefits of Endowment Policy?

Different Types of Insurance Policies in India

Is Life Insurance an Investment?

NRI Premium Payment Options

Does Life Insurance Cover Terminal Illness?

Everything You Must Know About ULIP Riders

Sabse Pehle Life Insurance

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Most Common Life Insurance Riders to Enhance Your Existing Policy

Does Family History Affects your Term Life Insurance Rates?

Term Insurance Tips for NRIs in India

Can An Individual Buy Multiple Term Insurance Plans?

Difference Between Insurance and Assurance?

Life Insurance for Overweight Applicants

Types of Insurance You Must Invest in for Secure Future

How Does Life Insurance Work?

Life Insurance and Retirement Planning

Life Insurance vs Mutual Funds

Life Insurance for Millennials

Is Return-of-Premium (ROP) in Life Insurance Worth It?

Take 100% Responsibility of Your Family with Term Life Insurance

Term Insurance Claim Process