Best home loan insurance policy in India

Before telling you about the best home loan insurance policy in India, I would like to begin with the difference between home insurance and home loan insurance. Home insurance protects you in case your house gets damaged due to natural calamities such as earthquakes, floods, etc. So, in simple words home insurance backs you up during adverse situations. On the other hand, home loan insurance takes care of the pending home loans which are supposed to be paid each month.

There are many lenders who will offer a housing loan insurance plan when you opt for a home loan. In fact, in most cases, they will offer you one. Banks don't like to take any risk for providing home loans. Therefore, they try their best to negotiate with customers for housing loan insurance policy.

I have checked out home loan insurance policies so before stating about the best home loan insurance policies, I will share with you what you should check out before opting for home loan insurance.

• Payment policies-

Check out for home loan insurance which offers single premium policies. This means you need to pay the premium just once. You should not opt for home loan insurance if the premium is added to the loan amount. For example, if you take a loan of Rs. 30 lakh, and home loan premium charge is 1.5 lakh, then the EMI will be calculated on the Rs. 31.5 lakh.

• Life Cover

You should opt for home loan insurance which should cover up for the period you have decided to pay home loans.

• Add-ons

Several providers offer some add ons to their home loan insurance. If you are opting for home loan insurance, you should always check those add-ons. Home loans insurance plan covers

• Terminal Illness

• Accidental Death

• Jobless up to three to six months of EMI payments

• Disability

You may need to pay some additional charges when you opt for these add ons. Since I took home loan from SBI, I opted for SBI home loan insurance. I had to pay the premium and I haven't faced any difficulty after getting the home loan. So, I feel SBI home loan insurance is decent.

This is all I need to say about the best home loan insurance policy in India. 

Want to check out the EMI for home loan? You easily calculate below:

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