Most of us seek financial assistance from housing finance companies to buy our own house. A house is a cherished possession that is owned by the entire family. When we borrow money, the financier normally insists on the mortgage of a property. In the event of the unfortunate death of the borrower, who is normally the breadwinner of the family, the family is saddled with the difficult responsibility of repaying the outstanding loan.

This risk can be covered through wise insurance planning. Life insurance offers a tailormade product that can pay the outstanding loan to the financier in the event of death of the borrower. The premium for this can be paid regularly over the duration of the loan or for a shorter period or in a single lump sum. The premium varies with age, duration of loan and duration of selected premium paying period.