Section I: Income Tax and Your House

• Ques: You should get insurance cover for home loan
• Ans: Key points:
  • One should take the life insurance plan to ensure the repayment of home loan in the event of untimely death. Generally, banks include the insurance premium in your EMI, which makes it convenient to pay.
  • It mitigates the risk that even if you are not around to pay off the installments, your family will never be without a home.
  • Term plan is mostly cheaper and advisable than mortgage insurance. It continues even if you pre-pay the home loan whereas mortgage insurance reduces the risk cover every year.