March 21, 2014 8:29 am
which insurance companies are better for home insurance for longer terms in terms of claim settlement ratio.
Thank you Curiousraj for your clear explanation.
Hemanth, Thanks for visiting my blog. I think you got it wrong or it is typing mistake in sentence (take a loan of Rs.80 lakhs (50 + 30)).
If you mean insurance of Rs. 80 lakhs then you are right. It is not necessary to take a single Rs. 80 Lac term plan. If you already have 50 lac term insurance you can take separate Accidental policy (not the accidental rider with term plan). Accidental Insurance Plan has some additional benefits for injuries which are not covered by Accidental rider of Term Plan.
Moral of the story is never take Home Loan Insurance. Moreover there is no tax benefit for home loan insurance but for Term Plan you can save tax under 80C.
I have gone through your article. I got a question on this. Please clarify.
Suppose I want a term insurance of Rs. 50 lakhs and there is home loan of Rs.30 lakhs, what you are saying is instead of taking a term insurance of Rs. 50 lakhs, take a loan of Rs.80 lakhs (50 + 30), so that your aim will be achieved in less premium.
Please correct me if I miss something or my understanding is wrong on this.
Kalya, regarding the same issue you can find some real facts here:
Kalyan, As per my view you should not take home loan insurance at all. Better take a life insurance. Consider this:
Consider as of today your Home loan outstanding is 25 lac and remaining tenure is 20 years.
Now if you have a life insurance of 50 lac(or any amount 25-50 lac) so irrespective of whenever you die today or after 5,10,15 or 20 years or even after that (before maturity of insurance plan) your nominee will get full amount for sure.
Now if you have a home loan insurance and you die after 5,10,15 or before closing of loan then your nominee will get only remaining outstanding amount to pay the home loan. so even after paying premium regularly the sum assured keep on decreasing(as home loan outstanding decreasing).
So as per my view we should never opt home loan insurance. if you already have a term insurance with sum assured sufficient to pay home loan and take care of your family then no worry. If not taken term insurance till now then take it immediately. If you have term insurance but sum assured is not sufficient then take one more term insurance.
Hey thanks for ur valuable information.
You can check with SBI , you can opt for 1time payment or yearly
It’s basically a term insurance …
Are you looking form Home Insurance against theft/natural disaster or Home loan insurance. Please clarify.
hi…i was asking about home loan insurence.
Dear Kalyan, all home insurer are same and not much is there to distinguish.
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