Term Insurance

Why you need to have a term insurance if you have outstanding loans?

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A term insurance can be especially important if you have an outstanding home loan. While a home loan goes a long way in helping us get a step closer towards acquiring our dream home, it can also prove to be a huge liability on your family in your absence.
Take, for example, the case of
Mr. Tilak, a manager at a top MNC. He is the sole breadwinner in his family. He has just achieved one of his most important goal that is buying his own house. To achieve this goal, he availed a housing loan for Rs. 80 lakhs which he intended to repay on a monthly basis amounting to Rs 70,000 over a period of 20 years. His wife, a homemaker spent most of her time in taking care of her two school-going sons. In this scenario, if an unfortunate event were to happen to Mr.Tilak, the entire responsibility of repaying the home loan would fall squarely on his family which, in turn, would put them under tremendous economic strain.
Instead of stressing out, taking timely steps to secure your family’s future right from the beginning will go a long way. The proceeds from a life insurance plan can be used to repay any outstanding debts while also replacing the future loss of income.
Additionally, you can even add a critical illness rider to your term insurance policy that will financially support you in case you get diagnosed with a critical illness. This will safeguard your income and savings from being exhausted on such unforeseen medical expenses.
Loans, especially secured loans, in particular, are generally big ticket items where the EMI payment continues for a long duration. In some cases, these loans extend even post-retirement. As long as you are having a continuous, regular stream of income, you will be able to afford the EMIs. However, what if an unfortunate incident happens to you and the outstanding loan is passed on to your loved ones?
While none of us like to envision such a grim reality, the truth of the matter is that unforeseen incidents can happen at any time. If you’re not there with your family, how would your loved ones continue to financially maintain their current standard of living?
At this juncture, Edelweiss Tokio Life – Zindagi plus, a comprehensive and all-inclusive insurance solution enables its policyholders to provide financial protection to their dependents and it also goes a step forward to cover their spouse as well.
A term life insurance makes sense for families with outstanding loans. Term insurance plan covers your life against unforeseen eventualities for a specified period of time with affordable premiums.
Simply put, term insurance doubles up the financial safety net as it makes sure there’s money available to cover for everything from utility bills to home mortgage and any other outstanding loans you might leave behind. Term insurance makes sure that your loved ones aren’t left with a financial burden to deal with on their own. Secure your family’s future with Edelweiss Tokio Life Zindagi Plus as soon as possible.

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