Home loan insurance is not mandatory but it is important, know how it comes in handy in difficult times.
Home loan insurance is a protection plan for your loan. When you go for a home loan, every bank offers you home loan insurance
If the borrower dies, the remaining installment is deposited through this insurance and your house remains safe
With this, there is no worry of loan default because this responsibility goes on the insurance company. In such a situation, the home loan granting bank cannot assert its rights over that hous
Be it the Reserve Bank of India or the insurance regulator IRDAI, there is no guideline mandating the purchase of home loan insurance. But this is necessary to keep the family safe
This is the reason why many banks or finance providers have started telling the amount of such insurance to the customers only after adding it to the loan
The premium for home loan insurance is 2 to 3 percent of the total loan amount. If you want, you can deposit the insurance money in lump sum while taking a home loan, or you can also make EMI of the insurance money
In such a situation, just as your home loan EMI is deducted, in the same way the monthly installment of your home loan insurance will also be deducted
if you shift the home loan to someone else's name or close it prematurely, then the insurance cover gets terminated.
Apart from this, cases of natural death or suicide also do not come under the purview of Home Loan Protection Plan