Are you the sole breadwinner of the family, making hefty monthly repayments towards a home loan? Do you fear that your family will be in severe financial distress in case something unfortunate happens to you? How will your dependents pay the lender? Here is some news that will bring some solace to borrowers who have taken huge loans. For a small monthly premium, home loan insurance cover ensures that the outstanding loan is repaid if the borrower dies during the term of the loan.

This insurance cover is redundant for borrowers who have enough alternate sources of income, other investments and alternate savings to fall back on in the hour of crisis. Home loan insurance is product meant for borrowers who have no alternate source of money to rise. An outflow of small premium money will provide them the much-needed financial cover and emotional security.

While some lenders offer free home loan cover, others have a tie-up with a life insurance company. Such plans usually offer negotiated group rates. Repayments are made simpler when the premium amount is clubbed with EMI. If the borrower decides to make a onetime payment towards insurance cover, the amount is added to the home loan amount and equated monthly installments are calculated on the total amount.

Premium for your cover is dependent on four factors  loan amount, tenure, age and health condition of borrower. A higher loan amount implies a higher premium. If the tenure of the loan is long, premiums will be on the higher side. Younger borrowers are charged lesser premiums when compared to older ones. A person suffering from illness like heart ailments or BP will be charged more premium than a healthy individual.

Exclusive home insurance plans with numerous benefits are offered by banks that insure your home loan. In case of a joint loan, two policies will have to be taken in the names of the joint applicants and premium amounts would get doubled. Here, even if one of the applicants dies, the loan is taken over by the insurance company.

Take a home loan cover if your family does not have additional income sources to repay the loan. For a few hundred rupees, your hefty EMI dues are covered. With home loan repayment protection you can set all your anxieties at rest.
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  • how to take loan insurance after 1yr

    hi,

    i have a home loan with CANFIN housing bank.
    they had offered me , a loan insurance cover in the beginning and told me register for it with in 3 months or else later , i will not be eligible to opt for that insurace coverage.

    I ignored it , as i was not aware of the benefits of home loan insurance at that time.I contacted them now,but they said now , i cant apply it seems.

    So i wanted to know which is the best bank today who can provide me a good & safe home loan insurance

    please guide me if any one knows.
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  • which bank is better option for Homeloan

    hi hello
    My name is adam carter i am working as a associate editor

    I am going to purchase a Flat which is best option for Loan out of following banks:)
    1.HDFC
    2.ICICI
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  • HDFC or ICICI

    Originally Posted by adam0211
    hi hello
    My name is adam carter i am working as a associate editor

    I am going to purchase a Flat which is best option for Loan out of following banks:)
    1.HDFC
    2.ICICI


    Dear adam carter,

    I have experience with both HDFC and ICICI. HDFC is much better as they service the customer well overall. Any copy of the document like land registration deed copy etc. HDFC gives to the client without asking whereas one need to chase ICICI for many weeks to get the copy of the documents. They may even ask for Rs. 500 as document charge for every document copy you need. Also the rate of interest changes are done quickly at HDFC whereas, ICICI takes a lot of time, ultimately in days of reducing interest rates, you will get benefitted with HDFC. At the end of my loan repayment, HDFC gave the original documents in an hour of my going to them. I do not know about ICICI, but I feel, there can be delays with them.

    ks2071746
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  • if possible go for a nationalised bank (not LICHF). Between HDFC and ICICI, HDFC is better. For a home loan coverage see for general insurance companies. Aviod ICICI, for their initial stage is good. But problem starts after a year.

    Good luck.
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