Insurance with home loan

Is property insurance mandatory for home loan in India?

RBI or the insurance regulator do not mandate that you buy insurance for the purpose of availing of a loan. Further, banks cannot force you to buy insurance from their recommended insurers only. However, it is a general practice for banks to ask for property and life insurance when extending a home loan.

Is insurance mandatory for Icici home loan?

The insurance policy offered by lenders is the term insurance plan that comes with low premium and high coverage. As a home loan borrower, it is entirely your discretion to buy the insurance policy and it cannot be forced upon the borrower.

Is property insurance mandatory for Axis home loan?

“It is not mandatory to purchase home loan protection plans. Neither the law nor the regulatory bodies such as RBI or IRDAI have made the purchase of home loan protection plan with a loan mandatory.

Is it compulsory to insure home loan?

Some of the finance companies term these products as mandatory and force buyers to pay extra for the premium. However, this is not true. Buying home loan insurance offers extra security but it is not compulsory.

Is it compulsory to take property insurance with home loan in SBI?

Home loan insurance is not compulsory while availing home loan. However, as a means of securing your finances and assets, an insurance of this nature becomes important. As a buyer of insurance, you must remember to do your own research before availing this option.

What are the benefits of home loan insurance?

The insurer pays the lender the outstanding balance of their home loan amount if the borrower dies due to unexpected situations. In the event of the borrower’s death, the insurance company pays the remaining balance of the home loan to the lender. The term of the policy and the loan is usually the same.

Is insurance compulsory for HDFC home loan?

No, it is not mandatory to buy home insurance with a home loan.