I will be taking a home loan. Will it help if I go for a high-value policy with a life insurer for taking a housing loan?
Anita Sharma, Ghaziabad
Buying a house is one of the biggest financial decisions made by most Indians. You don’t have to be a policyholder from a life insurance company to procure a housing loan. However, if you are a policyholder with a high sum insured, it certainly helps. As far as the loan against policies is concerned, apart from the sum insured and the surrender value of the policy, the loan repayment capacity is also a major consideration. You should ideally take a term policy that insures you against the loan that you take, so that in case of any calamity, the insurance would pay for the loan outstanding.
