How many home loan providers in India offer options of home insurance (themselves or through any sort of affiliation with some insurance company) while allotting home loan to their customers? If you know any, then please share.
Read more
Reply
15 Replies
Sort by :Filter by :
  • Compulsory Home Insurance with Home Loans

    Today, its almost mandatory for home loan customers to take home insurance as the HFC do not want to be without a risk cover for the amount they have given as home loan.

    ICICI home FInance has a tie up with ICICI Lombard and HSBC currently has a tie up with TATA AIG for such policies.

    In fact, the trend is to have a single premium policy for the insurer's life to the extent of covering the amount of loan financed and annual premium on the home insurance. The amount of single premium is added to the loan component and that effectively gets financed and you pay that amount as part of EMI rather than one large lumpsum amount
    CommentQuote
  • Great info........

    That's great info....:)

    Thanks Ram for making people aware of one of the important aspect of property investment, ie, "Home Insurance".

    Great job done!!!
    CommentQuote
  • Would love to share more realty info

    Hi Suruchi
    Thanks for your kind words
    I have been in Realty as a proffesional Realtors for the last 14 years
    And its been a big learning curve for me
    I believe i will enhance my skills further on forums like this

    Do keep contributing here suruchi
    Ram
    CommentQuote
  • Nice and useful information for everyone. Thank u for sharing that.

    This type of policies will surely encourage people to opt for home finance too.
    And it is a bless for salaried class specially.

    In future, pls do provide with information on such policies so that people can avail maximum benefit out of a professional advice:)
    CommentQuote
  • Hi mishthi

    I know one more such home loan provider. United Housing Loan Scheme offers home loan in India, along with home insurance cover to its owners

    You can take opt this home loan scheme to purchease some land, or for construction of house/ flat, to Renovation/ extension/ repair/ furnishing of house/ flat,and is also extended to those cases also where flats are being constructed by promoters/ developers where immediate mortgage of the property may not be possible.
    CommentQuote
  • Dena Bank's tie up with LIC

    If u guys know that Dena Bank has also joined hands with Life Insurance Corporation of India (LIC) to launch a group mortgage redemption assurance scheme for housing loan borrowers.

    Christened Dena Grihaswami Suraksha Yojana, the scheme is applicable to all housing loan borrowers, including staff housing loan borrowers of Dena Bank, in the age group of 18-60.

    However, the insurance cover is limited to outstanding loan subject to a maximum of Rs 1 crore., the scheme is applicable to all housing loan borrowers, including staff housing loan borrowers of Dena Bank, in the age group of 18-60.

    However, the insurance cover is limited to outstanding loan subject to a maximum of Rs 1 crore., the scheme is applicable to all housing loan borrowers, including staff housing loan borrowers of Dena Bank, in the age group of 18-60.

    However, the insurance cover is limited to outstanding loan subject to a maximum of Rs 1 crore., the scheme is applicable to all housing loan borrowers, including staff housing loan borrowers of Dena Bank, in the age group of 18-60.

    However, the insurance cover is limited to outstanding loan subject to a maximum of Rs 1 crore., the scheme is applicable to all housing loan borrowers, including staff housing loan borrowers of Dena Bank, in the age group of 18-60.

    However, the insurance cover is limited to outstanding loan subject to a maximum of Rs 1 crore.
    CommentQuote
  • me too i was needed to this information, thnx for sharing ;)
    CommentQuote
  • IDBI Bank provides an additional opt-in for Life Insurance cover over the Home Loan. It looks like a differentiated offering.

    http://www.idbi.com/products/homeloan_homeloanwithlifeinsurance.asp
    CommentQuote
  • Originally Posted by mishthi
    How many home loan providers in India offer options of home insurance (themselves or through any sort of affiliation with some insurance company) while allotting home loan to their customers? If you know any, then please share.


    Guiding the forum mem to diff school of thought:-
    https://www.indianrealestateforum.com/forum/other-forums/legal-vastu-home-loans/home-loans-in-india/10531-is-home-insurance-mandatory-with-home-loan/page2?t=12928&page=2
    CommentQuote
  • No home loan insurance if you plan to prepay

    DOn't go for home loan insurance if you are planning to pre-pay the loan. In home loan insurance, the entire premium is added upfront and incase of prepayment you only get back the surrender value calculated as -

    (45% of the Premium paid less taxes) x (Unexpired term/ Total term) x (Sum Assured benefit at the time of surrender** / Sum Assured at inception).

    *This is the SBI Policy


    A simple plain vanilla term insurance would be much cheaper as you can stop paying the premium once you have repaid the loan. Also, these days you have the option of a decreasing balance policy.
    CommentQuote
  • Hello Freinds,
    I am new member of this forum, I am intersting to buy 1 bhk at Amrapali dream valley project. Kindly let me know the price of this property.
    CommentQuote
  • Originally Posted by nidhi_mumbai
    DOn't go for home loan insurance if you are planning to pre-pay the loan. In home loan insurance, the entire premium is added upfront and incase of prepayment you only get back the surrender value calculated as -

    (45% of the Premium paid less taxes) x (Unexpired term/ Total term) x (Sum Assured benefit at the time of surrender** / Sum Assured at inception).

    *This is the SBI Policy


    A simple plain vanilla term insurance would be much cheaper as you can stop paying the premium once you have repaid the loan. Also, these days you have the option of a decreasing balance policy.


    I did the same, avoided SBI Rin Suraksha insurance. Instead opted for ICICI i Care term plan.
    CommentQuote
  • Taking a term plan of same amount would alwayd be adviced than home loan insurance, benefits being:
    - Cheaper
    - Provides insurance even after loan payment
    - Insurance would always be for full loan amount, not for outstanding loan amount
    CommentQuote
  • Originally Posted by himrathore
    Taking a term plan of same amount would alwayd be adviced than home loan insurance, benefits being:
    - Cheaper
    - Provides insurance even after loan payment
    - Insurance would always be for full loan amount, not for outstanding loan amount



    @himrathore- while the positives you mention are true but it is not the same as home loan insurance right? what happens if the under construction property falls down? on a different note in such a case when building falls down, isnt builder liable to either pay or reconstruct the flat of the owner? at least until possession?
    CommentQuote
  • Home insurance and term plans are two different plans to insure what you possess. Some insurers are now clubing these two with home loan insurance and providing a consolidated solution where buyer does not need to look for different plans. While it serves the purpose of a clubed and hasselfree insurance, it normally comes out to be costlier.

    My suggestion would always be to buy plans seperately as combined plans have some extra strings attached.

    You are correct on understanding insurance liability before possession, and it is completely of builder. So no need to buy home insurance before possession, and if you buy then also it would eventualy not cover what you intend to.

    Hope this helps

    Originally Posted by avi3001
    @himrathore- while the positives you mention are true but it is not the same as home loan insurance right? what happens if the under construction property falls down? on a different note in such a case when building falls down, isnt builder liable to either pay or reconstruct the flat of the owner? at least until possession?
    CommentQuote