Is insurance mandatory for home loan?
Home Loan insurance is not mandatory by law, RBI or IRDA but it is advisable.
BENEFITS OF HOME LOAN INSURANCE :-
- In case of unfortunate demise of the loan borrower during the tenure of loan, the insurance company settles the loan amount with the lender, so the borrower doesn’t take over the property.The excess amount is paid to the beneficiary of the policy holder.
- If the borrower losses their job and couldn’t pay their EMI.
- You get tax benefits under Section 80C.
- You can opt for other riders such as critical illness or disability rider. Such riders will increase the premium amount though.