What is Home Loan Insurance 2025 What is Home Loan Insurance?
Types of Home Loan Insurance Plans
Home loan insurance is a protection scheme designed to settle a home loan’s outstanding amount in case of the borrower’s death. It provides financial security for the borrower’s family by covering unpaid EMIs and mitigating financial burdens.
What is a Home Loan Insurance Plan?
A home loan insurance plan ensures that the outstanding loan amount is settled with the lender in the event of the borrower’s death. This indemnity plan provides financial protection to the family by avoiding the burden of EMIs.
- Level Cover Plan:
- Coverage amount remains constant throughout the loan tenure.
- Reducing Cover Plan:
- Coverage decreases over time, aligned with the outstanding loan balance.
- Hybrid Cover Plan:
- Fixed coverage for the first year, then reducing coverage from the second year onward.
Popular Home Loan Insurance Plans in India
- HDFC Home Loan Protection Plan
- Reducing cover plan.
- Coverage offered in case of the borrower’s death.
- ICICI Home Loan Insurance Plan
- Reducing cover plan with up to 20 years of tenure.
- Life coverage can continue post-loan closure.
- SBI Life – RiNn Raksha Plan
- Reducing cover plan with flexible premium payment options (single, 5-year, or 10-year terms).
- Coverage available for co-borrowers.