Protection is an apparatus for monetary security against afflictions like theft, accident, job loss, temporary or permanent disability, bad health, and death. Various protection plans are accessible in the market which gives tax reductions, risk covers, and fixed pay returns. However, among all protections, Loan Insurance Plans are the plans which extremely fewer individuals know about.
Loan Insurance Premiums
For paying Loan insurance premiums there are two options of making payments, these include:
A person can decide to pay insurance premiums along with the loan installments.
Or always free to make a lump sum payment while available for the loan.
Benefits of Loan Insurance
• Loan Insurance covers the risk factor during a tough time.
• Loan Insurance takes care of EMIs when the borrower is unable to pay because of some major issues.
• Secured, safe, and burden-free future for the family or the dependents in case of the borrower’s death.
• Loan insurance also covers job loss, major sickness/disease, temporary or permanent disability.
• While co-borrowing both the applicants can avail of joint loan insurance. Insurance will provide to cover both the applicants.
Tax Benefits of Loan Insurance
Loan Protection Insurance also provides tax benefits. As it also covers the death of the borrower hence this comes under life insurance. Hence, it provides tax benefits under section 80C.