Most banks these days also provide insurance on home loans against a single premium payment or a regular premium payment. The insurance safegaurds the borrower/heir from repaying the loan in case of any contingencies.Some Insurers also repay the interest which has been paid till date.
RE:Insurance of Loan Principal.
by adroit on Sep 25, 2006 09:59 AM Permalink
This would be useful:
1) Liability insurance is not needed if the property is bought as Investment.
2) The liability insurance, in most cases, gives accidental death cover only. Thus, in a sense, the liability is not fully insured. They also charge you a lot for the same. So don't go for such cover.
3)The better alternative is to go for Term Plan or ULIP (with minimum premium) from some Life Insurance Co.
