- About Coverfox
SBI Life Insurance is one of the top life insurance companies in India. It is the result of a joint venture with one of India’s major bank, State Bank of India and BNP Paribas Cardiff, a leading global insurance company. The aim of SBI Life Insurance is to become the most trusted and preferred life insurance companies in India.
Home loan is one of the biggest loans a person takes in his/her lifetime. The loan amount is huge and it can take 25 to 30 years to repay the same in instalment or on EMI. The loan is paid by the breadwinner of the family or is shared between two people like husband and wife. As life is unpredictable, the loss of a person who is paying the loan EMI, will bring grave financial crises within the family. The responsibility of the loan payment will suddenly fall on the dependent members of the family. If the loans EMI have defaulted, it can result in the bank taking over the home and the dependent family members will have no shelter or place to live. To evade this risk and dangerous situation, home loan insurance is the solution. Home loan insurance covers the risk of loan default and protects the dependent family members experiencing the worst crises of their life.
Home loan insurance can easily be taken when getting the home loan. It is usually available with the financial institution from where you are availing the home loan, and is often offered with the home loan package. While it is strongly recommended to take a home loan insurance, it must be noted that some financial institutions sell it as a mandatory part of the home loan, which is not required or necessary as per law. There are no rules and regulations which make it obligatory to purchase insurance along with loans. Hence, individuals must do their research and carefully select an insurance scheme that will suit their needs rather than the one being forcefully pushed to them.
Having a self-owned house is way better than living in a rented place for a businessman or salaried person. The real estate market has seen a steep growth in the last few years and it continues to rise. Home loans make it much easier for a person to buy the house and pay for it in years it come.
Today, it is easy to take a home loan, but the important part is the repayment that has to be done on a regular basis without defaulting on payments. If the person paying the home loan passes away suddenly, then the loan payment will default and the bank will have to take the possession of the house on non-receipt of due payments. Taking life insurance helps to mitigate the crises in such a scenario. The death benefit of the life insurance can be used to pay off the home loan amount, thus keeping the family house safe and avoiding any grave crises.
The life insurance policies from SBI Life Insurance are generally aimed at providing financial protection and offer a wide variety of choice to suit individual circumstances. Although all the plans from SBI life insurance offer comprehensive sum assured for death and maturity benefit that can deal effectively with a home loan, the protection category offers the best option.
In the day and age of the internet, it is best to compare the SBI Life Insurance Plans on the internet. The comparison will give the advantage of comparing key features like premium amount payable, life coverage sum assured, optional riders to enhance the protection of plan, and information on the funds in which the life insurer will put the premium amount. All this information can be gained in a matter of seconds on insurance comparison websites with easy to understand format.
Once the ideal cover has been selected, the person can calculate the premium amount by using the online life insurance premium calculator. This will help the customer plan their finances and ensure the premium amount of the plan is within their budget. If the life insurance plan is specifically aimed at home loan, it is recommended to purchase the life insurance coverage amount greater to the home loan amount. When buying online, the customer can also take the assistance of customer service advisors who can guide the whole process of buying the life insurance policy without any hassle.
Home loan protection is very important due to the unpredictable nature of life. A potential risk can be mitigated to a large extent with home loan protection. Below are some of the important reasons that justify the need for home loan protection.
Is SBI Life insurance mandatory for a home loan?
No, SBI Life Insurance is not mandatory for a home loan. But, due to its importance, it should not be ignored. A person should assess its situation and then buy life insurance for a home loan.
Is SBI Life Insurance is a part of SBI?
Yes, SBI Life Insurance is part of the SBI (State Bank of India) group.
Is SBI Life Insurance Safe?
SBI Life Insurance is part of the largest bank State Bank of India in the nation. SBI has 23,000 branches in India and 198 offices in 37 countries. The bank is one of the most trusted and a respected financial institution in the country today and it is extremely safe to buy any SBI Life Insurance plan.