Role of Home Mortgage Insurance

Buying a home, is every person`s dream.

Most of them, need to take a loan to buy a house of their choice.

This loan is called Mortgage loan, which basically means, loan secured by real property.

The person who takes this loan, is supposed to repay it.

However, if, he dies before, he can repay this loan, it becomes a problem for his family, and they have this liability of the loan getting repaid.

So, usually, it’s a choice for the family, either to repay the loan or surrender the property.

To avoid this situation, we have home mortgage insurance, which basically, helps the borrower`s family to repay the loan.

However, you can also, opt in for a PURE TERM INSURANCE policy, instead, or in addition to HOME MORTGAGE INSURANCE. As it will take care of other expenses, such as, your children` s education, marriage, medical expenses, etc. in case of your death.

In case of HOME MORTGAGE INSURANCE, the life cover starts reducing as you repay the loan amount.

Whereas, in case you take PURE TERM INSURANCE, the SUM ASSURED remains constant.