I have taken a loan and my bank insists I take a home insurance cover. Instead of that I want to take a life insurance cover to protect the loan. What would you advise?
– Aditya Singh
Life insurance policy ensures that in the event of the death of the borrower, financial assistance is provided to dependents so that dependent can pay the outstanding loan amount. In an unfortunate event—natural and accidental incidents like fire, earthquake or destruction of house due to riots, home insurance policy will provide financial assistance for losses or damages caused to house and household contents, which not only gives peace of mind but also extends support to get back to normal daily life. Some insurers provide package policy which covers critical illness, personal accident, loss of job and fire cover under single policy. Home insurance and life insurance are not replacements of each other, but the choice depends on what are your requirements.
