Want to take home loan? This insurance is a must before applying

By Chaitali Dutta

> Is it a good idea to take an insurance at the time of taking a home loan? What kind of insurance should we take?
– Anand Parthi
As a borrower, it is a good idea to take a vanilla term cover equivalent to the loan amount, on the life of the principal earner of the family. You may opt for a straight-line cover for the period of the loan or go for a reducing balance cover. Additionally, take a natural disaster, terrorism and fire insurance for the structure of your property. This will limit your losses in the event of an earthquake, flood or a fire.

The writer is founder, AZUKE Personal Finance Advisory (www.azukefinance.com). Send your queries to
fepersonalfinance@expressindia.com

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