Bank
Offered Life insurance Cover with Home Loan..
Ans by Mr.
Kapil Mehta, MD, Securenow Insurance Broker Pvt Ltd
Question:
The bank
has offered me a life insurance cover with the home loan I had applied for.
Should I opt for it?
- Mr. Naresh Gupta
Answer: It is
important to buy a life cover equivalent to your outstanding loan.
Buying
from the bank itself is most efficient because documentation is done in one
place and the premium is financed by the bank.
 |
| Kapil Mehta, MD, Securenow Insurance Broker Pvt Ltd |
These
housing loan life covers are typically sold under a group structure which makes
them cost - effective. Banks often have insurance attachment rates of over 80 %
with their loans.
There are
four important features that loan-linked covers should have.
First,
and most important, your family should be the nominee and not the bank.
Second,
if the loan is foreclosed, then there should be a provision to receive
surrender value.
Third,
the bank should take the benefit of a group structure and waive off any medical
requirements.
Finally,
the life cover should reduce in line with the outstanding to keep premiums low.
Securenow Insurance Broker Pvt Ltd
Registered Office:
C4/4 Safdarjung Development Area,
New Delhi 110016
Corporate Office:
A212, Shivalik,
New Delhi - 110 017
Phone number: 011 64560999,
Email: yourinquiry@securenow.in
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