Home Loan Insurance

In order to insulate one's family from the uncertainties of the future, one needs to take certain precautions. Hence, individuals can opt for an insurance cover such that in case of the untimely death of the borrower of the home loan, the outstanding amount of the loan is repaid by the insurer. Hence, the family members will not be required to pay the remaining EMIs. Most banks and housing finance companies offer reducing term insurance. This is a single premium decreasing term plan. So, as the loan amount decreases on repayment, the sum assured also reduces in the same proportion. This ensures that the customer pays only for the protection that is required and does not end up paying additional premium. Mostly, lenders club the premium amount with the original amount to be taken as home loan. HDFC's Standard Life Insurance offers a home loan protection plan for its home loan customers. Any existing or a new customer can avail of this loan. ICICI Bank has a reducing cover policy called Home Assurance Policy with ICICI Pru. SBI offers the policy as a Group Insurance plan.