Purchasing a house by using installment loan is currently popular in Cambodia. Low and middle-income Cambodian people who do not have enough cash to buy a house obtain this method to own a house through paying long term installment.
There is an issue that we should pay attention to. Almost haft of the monthly income of those people spend for home loan which might affect to the family daily expense or unexpected need such as health issue, accidental issue, lose of income issue, fire issue, etc. What would happen if those issues really occur? Who will continue to pay the loan? Will they lose the house that they just own?
There is a solution should be considered since it is affordable and efficient. It is the Insurance. There are many types of insurance and it also provides different benefit accordingly.
When buying any property, particularly the house, fire insurance should be strongly considered since it will help cover the lost of your house if fire ever happen. Generally, fire insurance will cover on your temporary shelter, your household property, furniture, take care of your installment loan, or pay off for your housing debt. The condition and covered benefits is depended on actual contract between you and the insurance company.
Another type of insurance is health and accidental insurance. It is like a net to protect your financial risk if there are any problems ever happen such as death, incapability, huge amount spending on health issue, or any accident. The insurance will cover on any spending like treatment in the hospital, the lost or damage, pay installment or pay off for your debt. In so doing, you do not have to take any financial responsible if those things ever happen because you will be taken care of. The condition and cover benefit is depended on actual contract between you and the insurance company.