We know little what fate has in store for us. When you take a home loan, it is on the basis and assumption of continuing income. We run into all kinds of risks in our daily life. Accidents and health issues like heart attacks, strokes, paralysis, kidney failure and other physically crippling ailments can cause loss of income or in some cases, even your life.
Housing loans are a fairly long-term liability. This is why when you take a home loan it is advisable to take a life insurance and critical illness policy.
Life insurance policies provide monetary benefit in case of an unfortunate incident like death and ensure that your family members inherit your home not your home loan. Critical illness policy will take care of the home loan liability if your income gets interrupted due to unforeseen, unavoidable circumstances which such conditions may create. That will be one less thing to worry about while you are anyway under severe stress.
Best of all, most banks will be happy to finance the one-time premium payable for both policies, enabling you to get this protection at a small addition to your regular premium.
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