Since a home loan is a long-term liability that can last from 15 to 30 years, the possibility of the borrower dying during the tenure of the loan cannot be ruled out. This has serious implications for the co-borrower and legal heirs.
Buy insurance protection
To minimise hardship for legal heirs, home loan borrowers must purchase additional insurance cover while taking a home loan.
“Some lenders require mortgage insurance to approve a loan application. You can either buy home loan insurance (also called home loan protection plan) or a life insurance cover, such as a term cover,” says Atul Monga, chief