Home Loan EMI Insurance
Home Loan EMI Insurance is a must for all housing loan borrowers. Taking Home loan is not big thing but insuring it is a great work. Many think that insurance cover for home loan is not required. Your home purchased through a housing loan is not your until unless you clear the dues.
You may be taking housing loan of Rs. 50,00,000/- but payment by EMIs for next 20 years would be nearly R. 98,00,000/-.
You can avail home loan without life cover also but the interest would be charged from first day itself. Never allow home loan to get credited to your account without housing loan. First 2 to 3 year EMIs would be adjusted for interest payment only. Home Loan EMI Insurance is a must because your family can live in the same house even after anything happens to you.Some Home loan companies add Home loan EMI Insurance also in your housing loan approval. Be careful while signing the housing loan papers.
Collect the below given details in writing before signing the housing loan insurance.
- Premium would be the same for next 20 years?
- Why my premium is cheap?
- Medical tests required?
- Lose of life due to Natural calamities is covered without extra premium?
- Lose of Life due to terrorist attack is covered?
- Claim ratio
- Claim settlement procedure
- Any Claim settlement in the past?
Insuring under Home Loan EMI Insurance is very easy and some times paperless. But after signing the papers, you cannot see or even get a call for collection premium many cases. In those cases, your Home Loan EMI Insurance will lapse.
Home loan insurance is a pure term insurance plan and can be discontinued once loans are cleared. There would be no compulsion to continue the Insurance cover after loan is cleared. If the Policy holder wants to continue, he may continue till maturity. No Maturity amount would be payable after premium paying term is over.