Introduction
In this article I will be writing about the insurance cover for the home loans. Don’t confuse with the home insurance and the home loans insurance. There is clear difference between home insurance and home loans insurance. Here I will be explaining the reason for the home loans insurance and why one has to choose the home loans insurance. After reading the article please post your comments. You can subscribe to our future articles here.
What is Home Loans Insurance?
How one can insure his house, in the same way you can buy insurance for your home loans. If you insure your home loans, if some thing happens to you, the burden of repaying the loan will be taken care by the insurance company. For example, If Mr.X is buying a house for Rs.150000, also he insures his home loans for that house. In case before completetion of the enitre loan amount he died. In that case remaining amount will be immediately disbursed to the bank by the insurance company.
If the loan is taken jointly, if any one borrower dies also the other need not repay the loan. Insurance compeny will repay the entire amount.
Premium for Home Loans Insurance
Premium for this cover will be vary depend on the applicant’s age,income and the capability to repay the loan. Usually, premium can be paid as a single payment or it can be added to the loan amount. The bank will factor this amount in the equal monthly instalment (EMI).
Summary
In this article I have written about the insurance for home loans. It is good to take home loans insurance if you would like to save your family after you. This insurance is not for every one, and can be utilized if the situation arise. Thank you for reading the article. If you have any doubts, please post it in the comments section. I am happy to answer all your questions.
March 22, 2009 at 11:13 pm
For 38 lacs loan, Any idea how much I should pay for Home laon insurance?
March 23, 2009 at 12:26 am
HI Prisri,
The insurance premium will vary depend on the many criteria’s like age,income and health condition. I would advise you to consult any insurance company or post your details here. I will answer your question.
Thanks,
Krishna
November 1, 2010 at 2:43 am
i have insured my home loan,and i have converted this insurance premium into my home loan .pl explain how can i take benifit of insurance premium.
January 27, 2011 at 8:53 am
we have taken housing loan from karnataka bank of Rs. 2000000/-jontly with my wife name in aug10 for 15 years and paid instalment of rs 21420\-p.m now we want home loan insurance those premium is one time for 15 years plz. advice me for insuance co. name and preemium of insurance
note my DOB 10-4-70
MY WIFE DOB 29-7-74
THANKS
REGARD CHETAN BHANUSHALI
April 3, 2012 at 5:03 am
Hi,
Suppose there is a scenario. Mr X has taken a home loan for 50 lakhs and he also holds a term insurance of 50 lakhs. So, if he dies his family members will get the death benefits of 50 lakhs. And they can pay the remaining house loan amount out of this money. So, do you think in this situation, term insurance can substitute the home loan insurance. Please clarify.
Thanks,
Ajaya
September 22, 2012 at 12:00 pm
sir,if i have taken a home loan of 1500000 than is it compulsory for me to take insurance policy from the concerned home loan providing bank or i can take it from any bank i desire?also if i have paid back 1400000 and i die than insurance company will pay balance 100000 to home loan bank and 1400000 to my family or only 100000 balance home loan is paid.alo what about in case im permanently disabled