I recently took a loan of 40L from SBI & I was told that SBI general Insurance of around 26k for 240 months is mandatory. I have few questions please-
1. Is it mandatory?
2. Who gets to keep the policy documents?
3. In the event of a natural calamity, who gets the insurance money? What is the coverage value?
4. Does this insurance only cover the property or also the home valuables against theft?
5. If it does not cover theft, can I pay extra and get that covered as well?
6. What if I prepay the loan before 240 mnths? Does the policy lapse? Do i get any premium back?
Thanks in advance. Regards – Laxmi.