Suppose a couple gets a home loan for a flat to be purchased with equal ownership each. In this case if they opt for home loan insurance (not insurance for the property) to cover for any unfortunate incident (like death of husband in accident) before the loan is fully repaid, who will pay the premium? I heard in one case the bank had told that either the husband or the wife can opt for paying the premium and not both of them. This is my doubt: If the wife pays the premium, and the husband dies or gets disabled due to some accident etc., before loan is not fully repaid, will the insurance company compensate for the entire unpaid amount? Second, it was learned that the amount of premium to be paid is not same for the wife and the husband because of age difference even though the aim is to insure the home loan which is same for both the husband and the wife. Why is this so? Third, if the truth is that the insurance covers risk of inability to repay loan for either one of husband or the wife, then what is the solution? Suppose the wife gets protection through insurance, then I guess the husband should approach another insurance provider (or the same provider) and get a new insurance? Is that allowed?
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  • In most of case, the home loan insurance is given for the younger one. Regarding your queries, I would also be intrested to know the answers. Someone on this forum who have more knowledge on this case please reply.
  • adding to the thread, i've bought under construction property jointly with my wife, however, i'm primary applicant for home loan and my wife is co-applicant.

    Now in case there is a death scenario/person's in who's name loan is awarded then insurance company will pay entire balance amount to builder or co-applicant(in my case my wife is co-owner as well) will have to pay balance to builder or insurance company bear entire outstanding.