Thinking About Term Life Insurance for Your Home Loan at 50+ Age? This Conversation Explains It Better Than Any Brochure
Recently, someone asked me a few questions about term life insurance in a specific situation. I’ve summarised our discussion below because many people have similar doubts, and the conversation highlights some useful general insights on how to think about life insurance. Questions I am a senior executive at an MNC, 58 years old, with an official retirement age of 65. I am purchasing an apartment worth ₹3 crore and taking a home loan of ₹2 crore, which the bank has approved with a 7-year tenure. The bank manager is insisting that I purchase a term life insurance policy linked to the home loan. My questions are: Is such home-loan-linked term insurance mandatory? Should I buy a term plan at this age, considering the high premium and the fact that my existing investments & assets are sufficient to cover the loan if something happens to me? Answers 1. Is home-loan-linked term insurance mandatory? Generally, it is not mandatory , and often not advisable to buy the bundled home-lo...