I have taken a loan to construct a house. Can you suggest a policy to cover the housing loan liability?
Radhika Rustogi, Lucknow
You can consider a mortgage protection plan. These plans cover the outstanding loan liability in the event of the death of the borrower. The extent of cover or the sum insured is equivalent to the outstanding loan amount and reduces as the loan is repaid. With respect to payment of premium, under these policies, one has the option to pay premium either as a lump sum or in instalments. Make a choice based on your convenience.
