Is it mandatory to take insurance along with home loan?

Is it mandatory to take insurance along with home loan?

It is not mandatory to buy a home insurance policy from a bank in order to get a loan. Contrary to the bank’s claims, there is no compulsion by the Reserve Bank of India (RBI) or the Insurance Regulatory and Development Authority (IRDA) for home loan applicants to buy any kind of insurance from the bank.

How do I cancel my HDFC Ergo accidental policy?

How do I cancel my HDFC Ergo General Insurance Policy?

1. Call on the 24×7 Toll free number – 1800 2700 700 from any landline & mobile or 1800-226-226 from mtnl/ bsnl phone.
2. You can also contact at the nearestHdfc ergo branch.
3. Customer service desk at [email protected].

What is the benefit of loan insurance?

The benefits of loan insurance include coverage provided by the policy during unforeseen events such as unemployment, disability or sudden death, tax benefits under Section 80C, money back at the end of tenure period and removing the burden on the family to repay the loan during times of distress.

Why am I paying a loan insurance?

Getting the loan covered Taking a home loan adds to one’s liability. In case of death of the borrower, the liability to pay off the loan falls on the surviving family members. Having an insurance cover will serve the purpose and help meet the financial liability.

Are there any changes to the 2015 mortgage insurance premiums?

There will be no change in Annual Mortgage Insurance Premiums for all case numbers assigned on or after January 26th, 2015 for the following: On loans with a Loan to Value of less than or equal to 78\% and with terms up to 15 years.

Are any extra charges included in my premium?

Any extra charges, such as issuance fees or other service charges, are not considered to be premiums and will be itemized separately on your premium or account statement. How Much Is an Insurance Premium?

Is it mandatory to purchase home loan protection plans?

However, an applicant needs to know that it is not mandatory to purchase home loan protection plans to avail of a home loan. You must also know that: What is protected under the home loan insurance plan is the home loan, not the home. Like any insurance policy, a premium will have to be paid on the insurance, too.

Are insurers charging installment fees to customers?

Insurers have begun charging these installment fees to people who pay their premiums in full at the beginning of a policy term. We’re seeing a disturbing billing trend where installment fees are added to the total premium amount that is due for the entire term, so even savvy consumers who take steps to avoid the fees get duped into paying.