All about Insurance cover for Housing Loan
Home Loan Insurance is an insurance plan that covers borrower’s outstanding loan liability. In case of his death or accident, the proceedings are responsible to pay the outstanding amount thus reducing the burden on the family.
These insurance policies offer a cover that gets reduced with the reduction in the loan amount every year. Most of the Financial Institutions offers Insurance policies with Home Loans due to their tie-ups with Insurance companies. One can buy the Insurance plan independently.
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The application must be submitted to the insurance company or the lender depending upon consumer’s choice.
Age and Tenureof Policy:
Insurance providers’ generally offer cover under Home Loan Insurance till the age 60 – 65 years. The insurance is usually offered for the tenure period of the Housing Loan.
Insurance covers premium:
- The premium for the insurance cover depends entirely on the age, loan amount, and Tenure and medical record of the insurance borrower.
- Premium can be paid in a single upfront or regular installments that are grouped together with the EMI of the loan.
- Insurance Companies sometimes conduct a medical checkup of the borrower.
- In some insurance companies, these medical tests are made compulsory for the borrowers above a certain age limit.
Important Points to note:
- Paying the whole premium in installments will boost the regular flow of funds due to the EMI payable towards the housing loan.
- The premium gets doubled in the case of joint applicant. In the case of any death of the joint borrowers, the insurance provider will be responsible for countering the loss that has occurred.
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Disclaimer: The information provided on www.dialabank.com is collected from public sources and is believed to be accurate and genuine. This site should be used as an information provider for different product offerings of Insurance companies and the visitor should make an independent verification with the Insurance companies to verify the claims made in the policy before making any purchase. The decision to Apply and/or Purchase a policy is at the sole and complete discretion of the website visitor and Dialabank.com cannot guarantee or can be held liable for loss or damage caused by claims made by insurance companies through their agents, partners, products or services, directly or indirectly.