HI,
I have to take home loan insurance for the loan I applied from SBI. SBI says under RINN Raksha policy I have to pay 1.35 lac as a single premium or 5 multiple premium to cover my 40 lac loan for 25 years tenure which is also comes under group insurance plan. Do I really have to pay 1.35 lac? I feel it as a huge amount. Please advise on this….
Therefore I am thinking about other option how about going for the term insurance where I can pay yearly basis. Again in this case they say I have to pay around Rs9300 as the premium for every year is that true? I have gone through so many sites including SBI website. I didn’t get any formula how they calculate the premium for home loan term insurance. Even after goin through so many sites I didn’t get any clear idea about this RINN Raksha policy.
In the meantime I was checking other insurance policy provided by SBI I came across smart shield home (decreasing Term Assurance) loan protection policy which is an idividual insurance plan where I feel the premium is very less. Still I am confused please throw some lights on this.
Also please let me know the difference between RINN Raksha and Smart shield policy and its benefits and key features and which I shud opt for.
Also advice me which plan should I go for Individual protection plan or group protection plan? I also want to make a note here that I dont want to go for a single or multiple premium. I like to go for a term insurance as I am planning to finish my loan within 10yrs
Also advice me where I can pay low insurance premium in either of these policy or shud I check with other banks? and also kindly let me know the actual formula how they calculate premium for term insurance
FYI: My age is 30, loan tenure 25 yrs, loan amount 40 lac,SBI loan interest rate is 10.15% and non-smoker
your expert advice is highly appreciated
With Regards
Boobathi P