There are times when we take help to fulfil our dreams, like a loan to build a dream home or study abroad or go on an international holiday. It can be anything. No matter what the reason is for taking a loan, it needs to be repaid on time. What if, due to unforeseen happening, it is not possible to repay the loan? This is when a loan insurance policy comes into play.
SBI General Insurance has launched a loan insurance policy to provide insurance against any untoward incident that may affect your ability to repay a loan, such as job loss, critical illness or personal accident. Having a loan insurance policy will let you fulfil your dream without any obstacles.
To understand the policy better, let us explore some key features of the SBI loan insurance policy,
Anyone between the age of 18 years and 65 years can purchase an SBI loan insurance policy.
A sum insured of upto ₹ 1 crore is available under the policy, on a reducing or fixed basis.
The policy is available for a maximum tenure of 3 years and not for the term of the loan.
No pre-policy medical check-up is required till the age of 45 years.
The policy is available on an individual basis only and in the name of the person who has taken the loan.
The policy has a waiting period of initial 90 days
Coverage for 13 critical illnesses is provided under the policy.
The policy protects not only the borrower but also the lender
Loan tenure, the Insured’s age, and the period of insurance affect the premium of the policy.
The inclusions under the SBI loan insurance policy are as follows;
13 critical illnesses are covered upto the outstanding loan amount or the sum insured under the policy.
The policy covers accidental death and permanent total disablement like loss of sight or limbs upto the outstanding loan or the sum insured.
In case of a job loss, a maximum of 3 EMIs are paid.
The following are certain specific exclusions under the policy;
Any critical illness within the first 90 days of the policy period.
Death or disability caused due to an illness
Venereal diseases
Claim under more than one category
Loss of job due to dishonesty, fraud, or bad performance
If the policyholder is Self-employed
Resignation or retirement
Job loss within the first 90 days of the policy period.
There are certain things you should consider before buying a loan insurance policy. Here is a checklist.
The total cost of the insurance is the most important factor to consider because, over the tenure, the total premium you will pay is a significant amount compared to the premium you pay monthly.
Check the coverage and exclusions under the policy, like events or the diseases covered, because in case you have a health issue which is not covered under the policy, you will not get any benefit. In such a situation having an SBI health insurance policy with more comprehensive coverage would be a better choice than having an SBI health insurance loan policy.
Check the benefits available under the policy. What will all expenses be covered in case of an untoward event?
Check if you have any employer benefits. Many times it happens that a policyholder is not aware of the benefits available through their employer’s insurance plan. If your employer insurance covers disability or disease for a period of 6 months, you may choose the coverage or sum insured by your loan insurance plan accordingly.
Check the claim procedure of the insurer and the required documentation.
Imagine a situation where you have a home loan, and you are changing jobs. But just before you are about to join your new job, you met with an accident and are now advised at least 2 months of bed rest. Your joining date is pushed ahead, and you are literally without a job during this period. How will you pay your loan EMIs?
In such a situation, if you have a loan insurance plan, you need not worry about EMI payments, even if you don’t have a regular income. Having a loan insurance policy is a personal choice, but there are reasons that make it a must-have choice.
In the event of any unfortunate happening, your family members will not have to bear the burden of your financial liabilities. You can take care of it yourself for the period you recover from any mishappening.
A loan insurance plan is a must-have protection you should consider for protection against any unfortunate event. It is as important as a health insurance plan. Such a plan offers many advantages if you are applying for a loan or you already have one. If you are wondering how to buy an SBI loan insurance plan, you can easily purchase it online through the company website or through Coverfox. For more information, call us or visit our website www.coverfox.com.
