June 5, 2013 11:03 am
Dear Sandeep, the policies listed by you are for your life & not for property. so useless for you in that sense.
it will be greate help if you can suggest any Home insurance product (For Flat only)
Hi Ankit/ Anshal,
Thanks a ton for your suggestion.
I am looking at the below site to find out the best for my Insurance (Only Flat ), but not able to find the premium calcualtor to find.
For IBGRihaJeevan by LIC of India = http://www.indianbank.in/products.php?pr=110&sc=3&ty=3&ct=23
For Kotak Mahindra Bank = http://www.indianbank.in/products.php?pr=113&sc=3&ty=3&ct=23.
Now in both the brouchers i am not bale to calculate my Premium amount.
and whether both are yearly or Full term policies.
Could you please through light on this.
Dear Ankit, thanks for the inputs. You are right on track.
Dear Sandeep, regarding the insurance there are 2 things.
1. Property Insurance
2. Life insurance
For Property Insurance, opt the one under the tie up with your bank (United in your case). Pay prem. from your own pocket. It’s one time for 20-25Y (as per loan term) policy. The prem. ‘ll be not more than 15-20K. Interestingly out of the 40L Rs. price of your house, a big part is meant for the ground on which the house is situated. In case of any mishappening to building, the ground ‘ll remain there as it is. So you can consult your bank to get the property insured only for the construction value which ‘ll be very less may be 10-15L Rs. only & accordingly you ‘ll be able to save on your Prem. outgo. these are small tricks to be used while dealing with your banker during home loan to save on cross selling.
For life insurance, please do note, you w’d have to bargain it hard with your bank. As you are already covered for twice the amount of home loan (in actual you should have more cover), the bank should not force you to accept the new mortgage term cover. In case bank insists to purchase the new term cover, please purchase it again in regular prem. mode & from your own pocket. You can happily apply for cancellation of policy after receiving it within the 15 day free look window. 🙂
First & foremost, as per RBI guidelines, it is not required for you to buy any home loan insurance policy through bank where you are taking the loan from. However, with some conditions bank wants to be assured of loan payment in case some misfortune happens to you. In that case, you can convince them by showing your existing term insurance policies. If they still do not convince then make a WILL with required amount given to the bank and rest to your nominee. Still if they do not convince then assign one term insurance policy to the bank, in this case if anything happens to your bank will receive the outstanding amount and rest will go to your nominee(s).
It is always advisable to take the loan of short duration. so go for 20 year.
It is not required to go with the insurance policy suggested by the bank.
I request Ashal to verify it as this is my first suggestion on this forum.
Firstly, thank you and Jago investor for providing us the very important and vital information about Finance.
I am planning to buy Home Loan from Indian Bank for amount 40Lacs, Now I am in trouble to ask you that Bank insist to buy Home loan insurance (insurance of Flat only) from United india insurance or from Kotak Mahindra as I have already been covered with Online Term plan policy with HDFC, Religare Worth 90lks.
Shall I take the Loan Term as 20 or 25 years, since it makes a diff of 3000 per month, I am thinking of taking it for 25 years now and pay the excess saving amount to Principal amount which will reduce my outstanding, Whether I am on right track, pls guide me on this linking with HLPP for 25 years as well.
Another query is whether it is always required to go with Insurance Companies specified by banks or we can also go with other companies.
Secondly, I would like to opt for not to include HLPP it in my Home loan and I will pay the cost of it from my own pocket. Want to know how it works whether Sum assured will be reduced year by year or remain same for the period of Home loan and if Sum assured reduced year by year whether premium on it will also reduced?
Could you please suggest me which Home Loan Insurance will be best for me and any company will give me multiple options like Monthly, Annually?
Appreciate your valuable advice.
Dear Sandeep, what’s the query?
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