Loan insurance cover for home loan

[noob69]

I am taking a home loan from icici where they are attaching a home loan insurance cover from icici prudential along with loan, though it was not compulsory.
Now here, instead of buying insurance and paying a monthly premium they have added a loan for this too with the same tenure and interest as the home loan. They are insisting that it will be cheaper this way. But I will end up paying 2.5X here too like the home loan.

I am confused right now, is this a good option or should I buy term insurance for 1cr crore the same price?

 

[Jeba M]

I am taking a home loan from icici where they are attaching a home loan insurance cover from icici prudential along with loan, though it was not compulsory.
Now here, instead of buying insurance and paying a monthly premium they have added a loan for this too with the same tenure and interest as the home loan. They are insisting that it will be cheaper this way. But I will end up paying 2.5X here too like the home loan.

I am confused right now, is this a good option or should I buy term insurance for 1cr crore the same price?

Yes. Buying a individual term insurance is more beneficial than loan linked insurance. You can opt the policy period and payment frequency at your convenient in individual term insurance. One of my friend got the loan linked term insurance from HDFC for sum insured of 20 L, which is cost the equal amount of my individual term insurance for 1cr and his tenure also 20 years only but for me 34 years. I bought the term insurance from Canara Bank HSBC.

 

[panchabhut]

The ICICI Pru loan insurance is a single premium policy. They convert the single premium into EMI.
Better to buy a pure term policy equal to the amount of the home loan.

 

[sxchzy]

I am taking a home loan from icici where they are attaching a home loan insurance cover from icici prudential along with loan, though it was not compulsory.
Now here, instead of buying insurance and paying a monthly premium they have added a loan for this too with the same tenure and interest as the home loan. They are insisting that it will be cheaper this way. But I will end up paying 2.5X here too like the home loan.

I am confused right now, is this a good option or should I buy term insurance for 1cr crore the same price?

i would advise if the house you purchased is of a well reputed builder the odds of anything happening to the building are drastically low.
but if you still want to buy pay the monthly premium

 

[Jeba M]

The ICICI Pru loan insurance is a single premium policy. They convert the single premium into EMI.
Better to buy a pure term policy equal to the amount of the home loan.

For Term insurance sum assured upto 50L premium amount is equal to 50L sum assured policy. So better to take the minimum 50L sum assured policy for long period instead of loan period in monthly premium payment frequency is better option. You should keep in mind this insurance will protect your family from your debt and sudden financial crises after your uncertain demise.

 

[techsearch]

If you do not already have a term insurance then nothing wrong in getting it. it gives peace of mind.
And its a very common practice all banks give this, I also got one along with my home loan.

Nowadays i have noticed that some banks attach this along with car insurance also.