What Is Mortgage Insurance?

Who Pays for Private Mortgage Insurance on a Mortgage?

This insurance offered is popularly known as Mortgage insurance or Mortgage title insurance or Home loan protection plan insurance. At the time of giving loan banks and other financial institutions ask for insurance to cover the loan in case of death of the insured or in case of the customer not being able to pay the installments.

Who Pays for Private Mortgage Insurance?

Mortgage insurance also known as Loan insurance is the insurance taken by the insured customer to safeguard the mortgage in case of sudden demise of the insured. The mortgage insurance is normally offered as declining term insurance cover in which the insured customer would pay the premium till the end of the mortgage period. The sum assured under Mortgage insurance would be the loan amount at any given time. In Indian scenario the mortgage customers would pay for the private mortgage insurance policy.

How to Secure Home Loan for Life Insurance?

It is important to secure a home loan for life insurance. This is because when you die, your heirs will get the money from your life insurance policy. You should consider securing a home loan for life insurance if you have an existing mortgage or you are planning to buy a new property in future.

One of the things you should do when applying for a home loan is to ensure that you add the outstanding amount as well as life insurance coverage to provide an overall figure. This will not only give you peace of mind but is also a great idea.

Is SBI Life Insurance Mandatory for Home Loan?

SBI Life Insurance is not a mandatory requirement for home loans. But, due to the importance of life insurance, it should never be ignored. Typically, someone would assess the probability of becoming disabled or ill to create an appropriate plan for self-protection. For example, people considering a home mortgage might buy a life insurance policy to protect their payments.

Can I Buy Life Insurance for Home Loan?

Yes, you can get life insurance for a home loan. It is advisable to buy a term plan for a home loan in the unfortunate death of an insured. Term insurance offers a huge sum assured amount is equal to 10 times the annual income plus the loan amount to be paid.

Is HDFC Life Insurance Mandatory for Home Loan?

No, it is not mandatory to buy home insurance with a home loan. But it has made usual for banks to insist on this policy to secure their customers. Even though it's better to have an insurance policy to cover the liability of the nature of a home loan, it is not mandated by any authority to get the coverage. The insurance policy comes with a low premium and high coverage. If need help calls HDFC insurance customer care number or HDFC insurance login to our portal.

Is Insurance Mandatory for Home Loan?

No. Insurance is not mandatory for home loan. As per the RBI and IRDA guidelines insurance is a product of solicitation and there should not be force from the entity to the customer to purchase the insurance at the time of loan disbursement. But it is in the interest of customers to have adequate insurance cover to cover the loan in case of sudden demise of the customer.