| Home loan-undoubtedly this is the single largest force | | | | Explicitly, you have to pay premiumeither in parts or |
| that drives the residential real estate in India today. Of | | | | one time to get the service. |
| course, the decision to buy a certain property largely | | | | Types of Loan Insurance |
| depends on the amount of home loan one is | | | | Under a home loan cover, the insurance company is |
| comfortably able to repay over a specific period of | | | | liable to pay the balance of home loan in case of |
| time. | | | | beneficiary's death, however ICICI Lombard offers a |
| So, its fair enough, we take a great care and concern | | | | variant in which the amount of sum insured remains |
| in calculating the pros and cons of availing of a home | | | | constant. |
| loan but then we miss out a crucial part here despite | | | | That means in case of beneficiary's demise, the |
| having all those brainstorming sessions with bankers, | | | | insurer not only pays the balance of loan but also |
| advisors, friends and family members. Chances are | | | | return the remaining amount to the familymembers of |
| rare that one thinks about the fate of his family | | | | the policy holder. |
| members who may enter into troubled waters in case | | | | More on Home Loan Insurance |
| one dies during the tenure of home loan. | | | | Loan Tenure: Home loan insurance premium varies as |
| What's the solution? | | | | per the tenure and amount of the home loan, as usual. |
| With rationalization of insurance and financial services | | | | Age: Unlike 55-years age limit prevalent for life |
| in India, a home loan buyer can well get a 'Home Loan | | | | insurance cover, one can avail home loan insurance till |
| Insurance' that provides a coveragainst your home | | | | the age of 60 years, with necessary medical |
| loan liability. The product is not just unique but is a great | | | | clearances. In the general course, the amount of |
| help in ruling out the impact of any unforeseen | | | | premium increases with the age. |
| casualties on one'sfamily members. | | | | Medical History: Regular rate of premium is charged if |
| Under this, you can avail of insurance against the | | | | you are medically fit. On the contrary, if you are |
| amount of home loan you had taken from any bank of | | | | identified in the risk categories in the test reports, the |
| housing finance Company. | | | | premium can be proportionately higher. |
| How it works? | | | | Tax Benefit |
| The home insurance or mortgage redemption plan | | | | Interestingly, this plan comes under the category of life |
| works just like any other insurance plan. The | | | | insurance and thus you can claim deductions approved |
| difference is that you insure a home loan insteadof | | | | for the same under section 80C of Income Tax Act. |
| covering yourself against any casualties or insuring any | | | | The catch here is that you lose the right of such |
| tangible assets like your vehicle, house or office | | | | exemptions in case the insurance premium is clubbed |
| against accidents and damages. | | | | with your Equated Monthly Installment (EMI) you pay |
| In case the beneficiary demises during the home loan | | | | on your loan. |
| term, the balance is paid by the insurance company. | | | | |