Best guide to buy best home loan insurance plan in India
Best guide to buy best home loan insurance plan in India
Home insurance plans cover your home loan in case of any untoward incident in life. And helps your family pay off home loan dues.
Since most people want to secure their future with their family with the help of home loan insurance due to the untoward happenings in our life
In the previous article, I explain the benefits and features of home loans.
Table of Content
- ICICI Bank Home Loans insurance
- HDFC Life Home Loan Protection Plan
- SBI Home Loan insurance plan
- Bajaj Allianz iSecure Loan Plan
- Bharti AXA home loan plan
- FAQ/ Frequently Asked Questions
1- ICICI Bank best home loan insurance plan
- No medical checkup done up to 3 crore premium
- Insurance plan for the person, house, and contents
- Single premium plan available
- Amount to be paid in case of permanent or complete disability claims. (Monthly amount Rs.50,000 for 30 lakh cover)
- Applicants can be covered under the loan.
- The premium paid for the cover of critical illness will get tax benefits under section 80D of the Income Tax Act
2- HDFC Life best home loan insurance plan
HDFC Life Home Loan Protection is a plan. It is decreasing term plan without a bonus facility.
In case of unfortunate death of the Life Assured, then assistance gives to clear the outstanding home loan.
How it works
In their plan, a lump sum amount is paid as a single premium. However, also included in the repayment installments of the home loan.
The Sum Assured is chosen from the outstanding home loan amount, which decreases every year as per the policy schedule.
- It is a reducing term insurance policy with only a death benefit.
- Single premium payment option
- Can be paid as installments
- The amount decreases every year as per the policy schedule.
- No maturity benefit is available.
- In case of unfortunate death of the Life Assured, the respective Sum Assured is paid as Death Benefit for the balance due and terminated.
- Death Benefit – Sum Assured is paid as a death benefit if the life assured dies during the policy term and terminates policy.
- Maturity Benefit – There is no maturity benefit in this plan.
- Income Tax Benefit – Death benefit is tax-free under section 10(10)D, subject to conditions.
3- SBI best home loan insurance plan
SBI Life Insurance is one of the best companies in India. The result of a joint venture with a major insurance company.
SBI Life Insurance aims to be a trusted and preferred life insurance company.
- Protects family members: In case of the sudden death of any member in your family who was responsible for paying the loan amount, the responsibility of the entire outstanding loan amount will fall on the family members. If the family member is unable to pay the loan EMI, then the bank can confiscate the property. If you have taken home loan insurance, then you and your family are safe from these problems.
- Protects property and other securities: In this situation, a home loan protection plan not only saves the house but also saves valuables. Therefore, the policy ensures that the family members save the family values in case the lender dies.
- Better option to pay a premium: A home loan can be paying a single premium. If the individual finds it difficult to pay the premium, then the premium amount is reduced through EMI by adding it to the loan amount.
- Additional Tax Benefits: Having the security of your home will give you peace of mind after taking an insurance plan. A home loan protection plan will free you from a stressful life.
4- Bajaj Allianz iSecure best home loan insurance plan
A home loan is one of the preferred means for buying a home. However, a home loan is quite different from other policies.
Home loans are for people of 20 years of age and above. Taking a home loan means protect your family financially.
With the increase in borrowings, the level of debt has increased significantly.
Taking a home loan is a prudent decision, but you need to keep repayment in mind and plan for all events.
- Term insurance plan for a home loan helps the family in your absence.
- Basic term insurance against a home loan provides help in the event of death and provides funds for the loan.
- Two prominent examples also need to be taken into account. One can opt for riders while buying term insurance to avoid loss of livelihood due to disability or illness.
- Term insurance for home loans with riders enhances the coverage and helps the family in adverse situations.
- This plan offers the option of getting coverage or joint cover. you can select a cover.
- Choose the sum insured that you can avail of the policy. and based on your loan amount.
- Choose the term of the policy as per the tenure of the loan.
- You can choose a fixed interest rate.
5- Bharti AXA best home loan insurance plan
Loan Secure Plan from Bharti AXA Life Insurance Company is the best option for those who have taken loans that they are not sure to repay and will not have to face the burden of repayment after their unfortunate demise.
The company hires agents and expertise to ensure that you get the policy that best suits your needs
A 24/7 customer service team handle your policies and solve any queary or concerns quickly as soon as possible.
- provide joint-life coverage
- If you want to repay your liabilities ahead of time, you can choose a shorter tenure. The option of a limited coverage period can opt at the very beginning.
- Bharti AXA Loan Secure Plan gives the option to continue with the insurance cover irrespective of whether the liability exists or not.
- The nominee of the policyholder is eligible for the death benefit as per the repayment.
- The customer can opt for a coverage amount less than the loan amount, but option only at the inception of the policy.
7- FAQ/ Frequently asked Questions
Q.1. Which home loan insurance is best?
If you opt for a home loan protection plan, there is a reduction in the sum assured to repay the loan.
Thus, when you claim, the nominee gets the remaining loan amount. Hence term insurance is the best option.
Q.2. What is the cost of home loan insurance?
If you choose a term plan of 1 crore, then its premium will be around Rs 8,000 to Rs 15,000.
Q.3. Is HDFC home loan insurance mandatory?
No, buying home loan insurance is not mandatory. But if something untoward happens to you, that’s why banks insist on taking it.
Q.4. Is home loan insurance tax-free?
Is home loan insurance tax-free?
If you pay for the home loan security cover, then the premium is availed of tax benefits under Section 80C of the Income Tax Act, 1961.