One small step for you, one giant misstep for your budget

Here’s a checklist of common errors homebuyers must avoid to make a smart purchase

Other important things to check when buying a home

It's better to get a pre-approved home loan.  Maintain a good credit score.  Assess your short and long-term goals and have a suitable financial plan before you start house-hunting.  Thoroughly check the vicinity and neighbourhood at different times of the day.  Evaluate commuting options and connectivity to your workplace.

When you’re buying a home, advice is never in short supply; every friend, family member, and colleague seems eager to point out the ‘right’ steps to take.  But in the rush to follow every piece of well-meaning guidance, it’s all too easy to overlook a small misstep that doesn’t fit the checklist.  And before you know it, that tiny error has snowballed into a costly blunder, a stark reminder that sometimes the abundance of ‘right’ advice can blind you to the minor wrongs that matter most.

Thus, to make your home buying process a bit easier, we list a few common mistakes that you, as a homebuyer, should definitely avoid.

Going over budget

Even a 10 year old understands that he cannot buy a chocolate worth Rs.100 if he has only Rs.10.  Homebuyers, however, are known to stretch their budgets a little when they go home-hunting.  A slightly better unit for a little extra cost, is tempting.

Ignoring additional costs

“It has been observed that the total cost of property increases by around 10 to 15 per cent when buyers add their interior designing and maintenance costs, moving and packing expenses, etc. These costs are often not accounted for when deciding the homebuying budget, thus straining the buyer’s pockets later”

Additionally, buyers must understand that the bigger the home, the higher the maintenance cost. “Moreover, maintenance costs are recurring expenses, along with utility bills, and daily household expenses. All of this should be taken into consideration before deciding the budget for your new home”

Resale value

Several reports have stated that property prices are skyrocketing. Thus, not asking experts about the resale potential of the house you plan to buy will be foolish. “Brokers can easily tell the approximate appreciation value of all categories of houses in a particular area. Ask multiple brokers and get an idea of the resale value of the home for at least the next five to 10 years”

Home inspection

A decade ago, only a handful of companies offered such services. Today, homebuyers are increasingly undertaking home inspections not just to check the Vaastu of the house but also to assess other key aspects, such as the condition of the house and any hidden issues. “Whether you buy a brand-new home or a resale property, you can conduct a home inspection to ensure that the home you are purchasing is in good condition. Check the flooring, wall finish, ceilings, electrical systems, plumbing, doors, and windows, and categorise the repairs (if any) into three categories—major, minor, and cosmetic. This way, you are mentally and financially prepared to service the home as you please”

Layout and floor

Considering your lifestyle and health conditions, it is essential to ensure that the house you select has a suitable layout that aligns with your needs. For e.g. if you like reading, it should have a quiet corner which receives ample natural light, where you can place your bookshelf and a cosy chair to create your reading nook.

“The house we currently live in has a beautiful balcony, and our morning routine includes having a cup of tea there. Unfortunately, today, either balconies are missing, or are quite tiny. However, we made sure to book a new house with a decently sized balcony so that we can continue our daily routine. It may seem like a small thing, but my husband and I are busy with our office routines throughout the day, and those 30 minutes in the morning are the only time we can spend together peacefully, which is important for us”

Emotional decisions

Don’t fall for attractive offers or get emotionally attached to a property just because the sample flat looks beautiful. Making decisions based on emotions can lead to major disappointments later. Conduct thorough research on the developer, property, vicinity, and crime rate. If possible, visit the locality a few times to get a complete understanding of the area. Being impulsive can lead to hasty and problematic decisions. Also, don’t let the seller pressure you into making a quick decision, remember, there are plenty of houses available in the market.

How to choose the best developer to build your home?

 

A few handy tips on zooming in on the perfect builder for the construction of your dream home

Buying your dream home is slightly easier and more convenient as compared to building it from the scratch.  When constructing your dream home, you have two main options:

1 Undertake the entire construction yourself, which will involve consulting various professionals and hiring specialists for specific tasks.

2 The second option involves outsourcing the entire project to a construction firm or consultant.  It then becomes their responsibility to hire skilled professionals to manage different aspects of the construction.  You have one point of contact (the construction firm) and they will ensure that your dream home is actually realised and that too within the decided budget.

However, since this single point of contact will oversee the entire construction process, it is crucial to hire someone you not only trust but also have a thorough understanding of the task at hand.  It is needless to say that you just cannot take chances with a place that you will be calling home and especially if you plan to live in it, can you?

So, how do you go about choosing the right builder to ensure you have your money’s worth and a beautiful, safe home too?  We help you with a handy guide to choosing the right builder for your home.

Credibility and qualifications

 

In this era of social media and search engine optimisation, it’s quite easy to track down a construction firm’s credibility and qualifications.  This is perhaps the first thing you must ascertain before you entrust the construction of your home to a firm.

A constructor of repute will always be a member of a recognised industry body.  It is also a good idea to check if the firm is certified.  An internationally audited and certified firm is expected to be more professional in the business with stronger focus on quality and customer satisfaction.

Reputation of trust

Trust and transparency are two important aspects that homebuyers expect from the construction industry.  When looking for a construction firm for your home, check for these qualities:

Enquire within your network of friends and business acquaintances who might recommend a good builder of repute.

A trustworthy firm will not leave a project midway or delay it.  The quality of construction will be given utmost priority because a home has to stand strong and safe for a lifetime.

A firm that is transparent when it comes to the construction budget and other transactions, will have a clear payment plan in place without any fine print.  This means no unpleasant surprises through hidden costs that are slapped on the customer during the construction phase.

Another aspect to ascertain is if the firm is known for subcontracting the project to another firm.  This is an absolute no - no because it’s a contract of trust that the firm and you have signed and it cannot be violated by the constructor by giving the work to a third party.

Project portfolio

If you’re looking for a professional builder with experience, enquire if they have a website or catalogue listing their completed projects.  This will give you the right picture about the kind of work the builder has accomplished.  It will also give you an idea about the type of home designs they are skilled at and the materials used.

Timely delivery

It is a non-negotiable priority, and it must be equally important to the construction firm that you choose.  The firm should respect your time and adhere to the project delivery date specified in the contract.  If possible, reach out to the firm’s previous clients to confirm whether they truly honour their commitments and deliver the completed home within the agreed timeframe.

Do not hesitate to take help from the professionals if you feel that something is off at any stage of the purchase.  As the saying goes, ‘better safe than sorry’.

Resale Risks and Rewards (RRR)

 

The allure of established neighbourhoods makes resale homes attractive.  But is it really worth the purchase?

Lower property prices, old world charm, established neighbourhoods and sound social infrastructure are all the perks that the secondary real estate market, popularly known as the resale market, offers.  Buyers are often drawn to these homes as they are generally at a lower price point as compared to new projects.

However, duality is the nature of life.  While homebuyers are able to save on the upfront cost of housing, old homes typically need some maintenance and that could add up to the total cost of the purchase.  So, if you are contemplating whether purchasing a resale home aligns with your needs, here is a detailed breakdown of its benefits and drawbacks.

PROS OF BUYING A RESALE HOME 

Ready to move into established neighbourhoods 

One of the biggest advantages of buying a resale house is that you get to buy your home in an already habitable locality.  In key metro cities, there are limited new projects in prime areas, making resale homes ideal for both, in terms of cost and options.  “Resale homes also benefit from superior connectivity, robust infrastructure, and vibrant community, making them attractive to end-users and investors seeking long-term capital appreciation.

Price negotiation

There is more room to negotiate especially if the seller is motivated and in urgent need of money.  The price can be negotiated on various factors such as the condition of the house or the wide range of similar options available in the market.

Unique character and style

Many resale homes, especially older ones, feature a unique architectural style and details that stand out from modern designs which may often seem identical or monotonous.  This charm can make your home feel more unique and personal.

“Mostly older apartments have a better built-up to carpet area efficiency.  One can also physically inspect the house to determine quality, size, and amenities to decide to whether to go for the house or not.”

CONS OF BUYING A RESALE HOME

Extensive repair cost

“ There is a possibility that the resale flat needs extensive repair because of its old age and / or quality of construction.  Besides the extra cost disadvantage, the repair could prove to be more tedious on the buyer”.  Common issues in such resale homes often include ageing roofs, outdated plumbing, and structural problems.

Outdated design

A resale house may have a unique architectural style and an old world charm but the design might be outdated and not as functional if you wish to live in modern homes with modern amenities.  For e.g., older homes might not have modern insulation and energy-efficient windows, etc.  This can lead to higher utility bills compared to newer homes built with energy efficiency in mind.

Lack of customisation opportunities

In an upcoming under-construction project, you have the option of requesting the developer to change the layout of the home (if permissible).  Resale homes deny you the scope of customisation; any such modification and translates into additional time and money.

No Builder warranty

When you buy a newly built home, you usually get a five-year warranty that covers any structural issues.  Older properties lack such warranties, necessitating a comprehensive inspection to uncover potential hidden issues.

“Getting home insurance for a resale property can be tricky since insurers usually shy away from covering older homes.  On top of that, sellers often ask for a good chunk of the payment in cash, this can be a problem for buyers, especially if they’re taking a home loan.”

Hidden charges that can strain your home loan budget

From processing fees to prepayment penalties, hidden charges can inflate the cost of borrowing, leaving many homebuyers financially stretched

While securing a home loan, many buyers focus primarily on the interest rate and EMI, naively assuming that these figures represent the entire cost of borrowing.  However, beneath every home loan’s surface is a complex web of hidden charges, which can significantly impact your total cost of homeownership and unsettle your finances.

“ I was overwhelmed when my loan got approved, but, little did I know that I would have to spend a lot more to earn my homeowner’s tag as the total amount of additional charges was almost three percent of my total loan amount.”

From application fees and closing costs to home loan insurance, these often-overlooked expenses can reveal the true financial commitment.  Understanding these hidden charges is essential for anyone navigating the home loan process.

While not always required, some lenders encourage borrowers to purchase a home loan insurance to protect against default due to unforeseen events like death or critical illness.  These policies can add to monthly expenses or be bundled into the overall loan, quietly raising the effective cost of borrowing.  Although it provides security, it’s often introduced late in the discussion, leaving borrowers under pressure to accept it without time to compare policies.

 Processing Fees

Lenders charge a processing fee, typically a percentage of the loan amount, to cover administrative costs.  While this is usually disclosed upfront, borrowers may not always anticipate how significant this fee can be, especially on large loan amounts.  Some lenders may also add additional charges, such as legal and valuation fees, under this category.

Prepayment and foreclosure charges

“Some lenders allow borrowers to prepay or foreclose the loan partially or fully without charge, but others impose a fee for this, particularly if the loan is at a fixed interest rate.  This fee can discourage borrowers from paying off the loan early, ensuring the lender continues to earn interest”.

A large majority of Indian homebuyers depend on home loans to fulfil their aspiration.  Many make the mistake of opting for the very first offer they can secure, thinking that the stated charges are standard across all lenders.  While most lenders levy these charges, the actual amts can depend on several factors, including the state of the market and the overall lending industry.  Remember that no lender has a monopoly on home loans, and this means that they are competing for your business.

Late payment penalty

If a borrower misses a payment due date, lenders often impose a late payment penalty.  These charges can be hefty and accumulate quickly, particularly if there are multiple missed payments.  This fee not only adds to the total repayment amount but can also affect the borrower’s credit score.

Conversion fee

Some home loan lenders allow borrowers to switch from a fixed interest rate to a floating interest rate or vice-versa, or reduce the interest rate if market rates fall.  However, they charge a conversion fee to make this adjustment, which may not be communicated initially but can be a significant cost if interest rates fluctuate frequently.

Document retrieval fee

At the end of the loan tenure or in the case of foreclosure, lenders may charge a fee to retrieve and release important property-related documents.  This small but additional cost can come as a surprise to the borrowers.

Re-sanction charges

The bank approves home loan and issues a sanction letter.  After this, borrowers usually have to get the home loan amount disbursed within three months of the issuance of the home loan sanction letter.  If you are not able to get the home loan amount disbursed within this time frame, the sanction letter is considered null and void and the bank will have to re-sanction the loan.  In such a scenario, the borrower will have to pay the fee again.

Legal Charges 

Lenders carefully assess the legality and technical aspects of a property to confirm its validity and worth, in the market before proceeding with any transactions.  This due diligence is factored into the overall cost to the borrower.

GST 

“Since home loan services fall in the ‘service category’, they are subject to the Goods and Services Tax (GST).  This tax applies to a range of fees including processing fees, administrative charges, and legal and technical fees.  The current GST rate applicable to home loan services is 18 percent, which increases the overall cost of the home loan for borrowers apart from the actual home loan amount.

எந்த பகுதியில் வீடு வாங்குவது என்பதை எப்படி முடிவு செய்வது ?

 எந்த பகுதியில் வீடு வாங்குவது என்பதை எப்படி முடிவு செய்வது ?

சொந்தமாக வீடு அல்லது மனை வாங்க வேண்டும் என்று திட்டமிடுவோர், அதற்கு ஏற்ற பகுதியை தேர்வு செய்வதில் பல்வேறு குழப்பங்கள் ஏற்படுகின்றன.  குறிப்பாக, ஆரம்பத்தில் அவர்கள் மனதில் ஒரு பகுதியை தேர்வு செய்து இருப்பர்.  ஆனால், தேடலின் போது அது மாறியிருக்கும்.

பொதுவாக எந்த பகுதியில் வீடு, மனை வாங்க வேண்டும் என்பது தொடர்பாக, ஒவ்வொருவருக்கும் தனித்தனி விருப்பங்கள் இருக்கும்.  இந்த விருப்பங்கள் எதார்த்த நிலையுடன் சேர்ந்து நிறைவேறுவதற்கான வாய்ப்புகள் என்ன என்பதை கள நிலையில் ஆராய வேண்டும்.

இந்த விவகாரத்தில் சொந்தமாக வீடு வாங்குவதா அல்லது மனை வாங்குவதா என்பதை முதலில் தெளிவாக முடிவு செய்யுங்கள்.  வீடு வாங்குவது என்றால் உடனடியாக குடியேறுவதற்கா அல்லது அதை வாடகைக்கு விட்டு, தற்போது இருக்கும் பகுதியில் தொடர்வதா என்பதை முடிவு செய்யுங்கள்.

கல்வி, வேலை வாய்ப்பு போன்ற காரணங்களுக்காக நீங்கள் தற்போது குடியிருக்கும் பகுதி அல்லது அதற்கு மிக அருகில் உள்ள பல்வேறு பகுதியில், உங்கள் பட்ஜெட்டுக்கு ஏற்ற வீடு கிடைத்தால், அதை வாங்குவதில் தவறு இல்லை.  சென்னை போன்ற நகரங்களில் பிரபலமான கல்வி நிறுவனங்கள் உள்ள பகுதியில், பட்ஜெட் விலையில் வீடு கிடைப்பதே அரிதாகி  உள்ளது.

இதனால், பட்ஜெட்டுக்குள் அடங்க வேண்டும் என்பதற்காக, சற்று தொலைவில் குறைந்த விலையில் வீடு வாங்குவதிலும் மக்கள் கவனம் செலுத்துகின்றனர்.  இவ்வாறு, நீங்கள் வசிக்கும் பகுதியில் இருந்து தொலைவில் வீடு தேடும் நிலையில், அங்கு ஒரு குடும்பம் வசிப்பதற்கு ஏற்ற அடிப்படை வசதிகள் இருக்கிறதா என்று பாருங்கள்.

எவ்வித வெளி உலக தொடர்பும் இன்றி சிறிய கிராமத்தில் கட்டப்பட்ட குடியிருப்பு திட்டத்தில் நீங்கள் புதிய வீட்டை வாங்கினால், அதை வாடகைக்கு விடுவதற்கு கூட வாய்ப்பு இல்லாமல் போய்விடும்.  குறிப்பாக, சாலை வசதி, வாகன போக்குவரத்து போன்ற வசதிகள் இல்லாத இடங்களில் புதிய வீட்டை வாங்குவதனால் சற்று யோசித்து செயல்படுங்கள்.

அக்கம் பக்கத்தில் போதிய வளர்ச்சி இல்லாத, ஆள் நடமாட்டம் அரிதாக காணப்படும் பகுதிகளில் வீடு வாங்கினால், பாதுகாப்பு தொடர்பான பிரச்னைகள் ஏற்படும்.  நீங்கள் வாங்கிய வீட்டில் கதவுகள், ஜன்னல்கள், வெளிப்புற விளக்குகள், குழாய்கள் போன்றவை திருடு போகவும் வாய்ப்பு உள்ளது.

இது போன்ற பகுதிகளில் தனியாக நிலம் வாங்கி வீடு கட்டியவர்கள் நிலை மிகவும் பரிதாபத்திற்கு உரியதாக மாறி விடுகிறது.  குறிப்பாக, அக்கம் பக்கத்தில் அதிக மக்கள் குடியேறிய பகுதி என்றால் தான், அங்கு நீங்கள் வாங்கும் வீட்டிற்கு வாடகைக்கு ஆள் கிடைப்பர்.  அக்கம் பக்கத்தில் எவ்வித வளர்ச்சியும் இல்லாத பகுதி என்றால், வாடகைக்கு கூட ஆள் கிடைக்காமல் வீட்டை பூட்டியே வைக்கும் நிலை ஏற்படும்.  இதனால், நீங்கள் செய்த முதலீடு எவ்வித பயனும் இன்றி, ஒரே இடத்தில் முடங்கிக் கிடக்கும் நிலை ஏற்படும் என்பதை கவனத்தில் கொள்ள வேண்டும் என்கின்றனர் கட்டுமான பொறியாளர்கள்.

When buying a 3BHK luxury apartment in Chennai - By using this checklist

 When buying a 3BHK luxury apartment in Chennai, you’ll want to ensure the property meets both your practical needs and long-term investment goals. Here's a detailed checklist to guide you through the process:

1. Location

• Proximity to Key Areas: Ensure the apartment is near essential locations like your office, schools, hospitals, shopping malls, public transport, and recreational spots.
• Neighborhood: Check for the safety, ambiance, and development status of the locality. Popular upscale areas in Chennai include Adyar, Besant Nagar, Anna Nagar, T Nagar, and OMR.
• Access to Infrastructure: Evaluate road connectivity, public transport availability (metro, buses), and ease of access to major highways.
• Future Development Plans: Research upcoming infrastructure projects like new roads, metro stations, or malls that may affect the area.

2. Builder Reputation

• Builder’s Track Record: Verify the reputation of the developer. Look into their previous projects, delivery timelines, and quality of construction.
• Legal Standing: Ensure the builder has all necessary approvals and is a recognized and reliable entity in the market.
• Completion and Possession History: Make sure the builder has a track record of delivering properties on time with minimal delays.

3. Legal Verification

• Title Deed: Check for clear land titles and confirm that the property is free from legal disputes. The title deed should be in the builder's name, and it should be legally verified.
• Encumbrance Certificate (EC): Verify that the property has no existing loans or financial encumbrances.
• RERA Registration: The project should be registered with RERA (Real Estate Regulatory Authority) and adhere to all legal norms.

4. Amenities and Features

• Luxury Features: Check for luxury offerings like modular kitchens, premium flooring, high-quality bathroom fixtures, balconies, and smart home systems.
• Common Amenities: Ensure the building has sufficient high-end amenities like a swimming pool, gym, clubhouse, garden, security, and parking facilities.
• Green Spaces & Environment: Check if there are adequate open spaces, parks, and landscaping for a good living environment.

5. Construction Quality

• Materials Used: Ensure high-quality construction materials are used, especially for plumbing, electrical wiring, flooring, and finishing.
• Structural Integrity: Hire an independent structural engineer (if needed) to assess the safety and soundness of the building.
• Vastu Compliance (if important to you): If you're particular about Vastu, ensure the layout of the apartment follows the guidelines of Vastu Shastra.

6. Size and Layout

• Space Planning: Ensure the 3BHK is spacious and functional for your needs. Pay attention to the dimensions of each room (bedrooms, living room, kitchen).
• Ventilation and Natural Light: Check if the apartment has sufficient ventilation and natural light in all rooms. Large windows and proper airflow are key.
• Balcony/Outdoor Area: Consider the size of balconies and additional outdoor spaces.
• Storage Solutions: Look for enough built-in storage options like wardrobes, cabinets, etc.

7. Pricing and Payment Terms

• Market Price Comparison: Compare the asking price with similar properties in the area to ensure you're not overpaying.
• Payment Plan: Check for the payment schedule and ensure it aligns with your financial situation. Some builders offer attractive post-possession payment plans.
• Registration and Additional Costs: Factor in registration fees, stamp duty, maintenance charges, and property taxes.

8. Furnishing and Interiors

• Semi/Fully Furnished: If you're considering a furnished apartment, check the quality of furniture, fixtures, and fittings.
• Customization Options: Some luxury apartments allow customization of interiors. Verify if the builder offers customization options based on your preferences.
• Security Systems: Ensure the apartment has advanced security features like CCTV surveillance, intercom systems, access control, and 24/7 security personnel.

9. Resale Value and Investment Potential

• Appreciation Potential: Look at the historical price trends in the area and the expected future growth. Areas with emerging infrastructure projects often see higher price appreciation.
• Rental Income Potential: Consider the rental yield potential of the apartment if you plan to rent it out.
• Exit Strategy: Consider how easy it would be to sell the apartment in the future, especially if the market trends in the area change.

10. Home Loan and Financing

• Eligibility for Loan: Check if the property qualifies for a home loan from reputed banks or financial institutions.
• Interest Rates: Compare interest rates offered by various lenders to choose the most favorable terms for your loan.
• Loan Documentation: Ensure all documentation is in order, including the builder’s approvals, occupancy certificate, etc.

11. Occupancy Certificate and Handover

• Occupancy Certificate (OC): Ensure the property has an occupancy certificate from the local municipal authority, allowing you to move in.
• Possession Details: Confirm the possession date and terms for handover. Verify if any delays are expected.

12. Post-Purchase Services

• Maintenance & Support: Understand the ongoing maintenance charges and services provided. Inquire about post-purchase services such as repairs, customer support, and warranty on appliances and structures.
• Community Management: Check if the community association or society is well-organized with rules, regulations, and meetings to ensure smooth living.

13. Builder’s Warranty

• Defects Liability: Make sure the builder offers a warranty for structural defects (usually 5-10 years).
• Appliance Warranties: If the apartment comes with appliances, check for the manufacturer’s warranty details.

14. Safety Standards

• Fire Safety Measures: Ensure the apartment is equipped with fire safety systems like fire alarms, extinguishers, and safe exits.
• Seismic Safety: Verify that the building complies with seismic regulations, especially in earthquake-prone areas.
• Flood Risk: Research if the area is prone to flooding during the monsoon season, particularly in low-lying areas.

Make yourself at home!

 After the thrill of buying a new home comes the administrative task of ensuring all the documents are in place

When vamsi moved into his new home, all he wanted to do was to get coffee and chill on the balcony overlooking the garden.  But the dream was short lived, as he realised he had no gas connection to make the said coffee.  Seeking refuge in a nap, he headed to the bedroom, only to remember that he hadn’t transferred the electricity bill to his name.  Comical as it may be, you don’t want to be caught off-guard like vamsi.  Once you move into a new home, there are tonnes of paperwork to be taken care of.  Here’s a handy guide.

Protect the documents

One of the first tasks is safeguarding your property documents.  Your stamp duty and registration papers, sale deed, share certificate, occupancy certificate, home loan sanction documents, etc. are crucial and need to be protected.  “Make a few photocopies of these documents, get them attested for added security and convenience, and store them at safe locations.  This is especially crucial for those who have taken a home loan, as the bank will hold the originals.  One may also store digital copies, however ensure that your devices and services are secure.”

Change the name on light bill

You will need to provide identification and proof of ownership.  If you have taken possession from the developer, you might need an NOC from him for the name change.  In some places, this can be done online saving you the hassle of going to the electricity provider’s office.  “I would suggest, visit the office to get yourself acquainted.  Visiting will also give you clear idea about the required documentation and process.  Consult someone who has recently undergone the same process as it may help you save time and silly mistakes.”

Set up your gas connection

Check if your building is connected to the gas pipeline, if not, then you’ll have to subscribe to the old-school gas cylinders.

Get your share certificate

It is a formal and legal document that proves that you are the owner of a specific number of shares in the housing society.  This document can be used as evidence in case of any dispute or conflict.  Reach out to your real estate agent or the owner directly for the specific forms needed and ensure both you and the seller sign them.  If you are buying in a new project, make sure you stay updated about the happenings of general body meetings to learn about the process, timelines and other important details.  “Securing your share certificate is important not only to maintain your rights as a homeowner but also to participate in community activities and governance.”

Updating personal documents

Keep your address up to date on documents like your passport, driver’s license, Aadhar card, voter ID, etc.  Do note that updating these are often dependent on each other, thus start with the electricity bill and then move on to other documents one by one.

Bank and Investments 

    

Update your address linked to your bank account.  The same could also be required for any life, health, or term insurance that you have availed.