Lic Home Loan Protection Plan

If i took a home loan of 50 lacs and also buy home loan protection plan to cover my home loan amount.

Lic home loan protection plan. Home loan protection plan is nothing but a single premium term insurance plan which covers the outstanding home loan taken by a borrower at any given point of time e g. Lic mortgage redemption plan is a pure protection term plan as a cover for all the loans and debts. Under property insurance you purchase cover against risks to property home due to earthquake fire flood storm theft etc. Please note a home loan protection plan is different from property home insurance.

This is the reason one should consider replacing loan insurance with a term plan as the sum insured remains constant says vivek rege managing director of vr wealth advisors. Lic mortgage redemption plan. Sbi life rinn raksha is a credit or loan protection insurance plan that pays off your debt in case any eventuality. If such is the case it will be clearly mentioned in the home loan agreement.

This is a traditional decreasing term plan without bonus facility. Insure your loan protect your family from financial distress now. The following tables show the comparison between a term insurance plan and a home loan protection plan for a person who is 30 years old and has taken a protection plan of rs 30 lakhs for a term of 20 years. This plan has been designed to help family repay the outstanding home loan in case of an unfortunate death of the life insured.

Professionals get an extended advantage of repaying back this lic housing loan in 15 years. Home property insurance can be mandatory at times. Wide variety of loans covered namely housing loans car loans agricultural loans educational loans and personal loans. Hdfc life home loan protection plan is a protection plan.

The premium of a home loan protection plan is much more than a term life insurance policy. It means that in this plan if the life insured dies within the policy tenure the lumpsum sum assured is paid to pay off all the outstanding loans and debts so that the family is not liable to pay any. God forbids if something happen to me after 4 years and my outstanding loan is 38 lacs at the time of death then hlpp. Home loan insurance also known as home loan protection plan hlpp is a scheme offered by almost every financial institution in which the insurer will settle the outstanding or balance home loan amount of the borrower with the lender or bank if there is a situation of unforeseen circumstances that may include demise of the borrower.

Insure your home loan amount and protect your family s financial future with icici pru iprotect smart.