SBI home loan -insurance – smartshield or Rinn raksha

POSTED BY ramesh babu ON April 27, 2013 3:54 pm COMMENTS (7)

I was been sanctioned 20lakh for SBI home loan.

Is it must to take term insurance (smartshield or rinn raksha) for the exact loan tenure ? Shall we take for less years ( less than loan tenure)

7 replies on this article “SBI home loan -insurance – smartshield or Rinn raksha”

  1. MADHUBABU says:

    Hai Ashal ji
    I had applied joint home loan with my spouse as main applicant so as to less the intrest rate on women account!
    Now SBI is insisting SBI LIFE with premium as 3,76,000 for 100% coverage against each. if we opt for 50% coverage against each it will be half of the premium. I am bit confused.
    So blindly suggest me group insurance plan or else is it advisable to go for on individual borrower basis with term insurance plan barring 0.05% intrest concession on women account as I am the payer of EMIs. we were sanctioned 50 lacs for 20 years. please guide me Ashal ji.

    1. Do not take any product like that ..

  2. LK says:

    I have got home loan a/c with hdfc and i want to insure the loan. I have been offered with hdfc credit protection plus with 68991/- single premium for 12 yrs and 16 lac loan protection. Is it favourable for me or please suggest other policy.

  3. Dear Ramesh, either opt the way as suggested by dear Symantak or opt the policy for lower term & lower prem. if your SBI staff permits.



  4. Syamantak says:

    get your loan processed and immediately after that get a disbursement towards the builder. this way you can mark your loan account from ‘approved’ to ‘active’
    now, immediately after you receive the insurance policy , return it back to the insurer (SBI Life) saying that you were forced to buy it. if you can do this within the free lock in period of 15 days, you’d be charged a minimal charges for processing etc and remaining amount will be returned back to you..
    after your policy ic cancelled, go and meet the branch manager who forced you to take the policy and notice his facial expression 😛

  5. Dear Ramesh, SBI ‘ll not allow less than loan term. Even if it agrees, I want to know the benefit you ‘ll earn by reducing the term of policy lower than your loan term?



    1. ramesh babu says:

      Hi Ashal
      There are two reasons.

      1.Already I am having enough cover by Term plan. I prefer SBI home loan and as insurance was unofficially mandatory, no other way I need to take any one SBI Life policy. Hence by taking saral shield for 10yrs single premium will come around 28k only whereas default they sanctioned me by 20 years. Hence I will go for SBI life with reduced premium and will get SBI loan (being if I am not taking SBI life,then again disbursement may get delayed).

      2.Though loan tenure is 20yrs, I am confident that I can close it in 10yrs. Hence I am preferring less term.

      As you replied, insurance should be equal to loan tenure, now premium is coming for 20 lac loan ; age 32years; tenure =20yrs.

      Rinn raksha =53k
      saral shield =66k

      This premium is almost 2.5-3% of my loan ,,, at the same time I am already having sum of 60lak term cover

      Ramesh babu R

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