Dealing with your absence is by itself very painful for your loved ones. The last thing they should be worrying about is how to make an insurance claim. The death of a loved one is a very stressful situation and no one deserves to be caught up in time-consuming insurance claim process during that time. To make the lives of your loved ones a little easy when you are no more, you will have to take some precautions now. If you have a home loan insurance plan and want to make the claim process smooth for your loved ones, read on.
What is a Home Loan Insurance Plan?
A home loan insurance plan is also called as “Home Loan Protection Plan”. This insurance plan pays for the total outstanding home loan amount in case of any eventuality. In case of the death of the insured, permanent disability, or critical illness, the policy will become effective.
When is a Home Loan Insurance Claim Made?
A home loan insurance claim is made in case of death of the insured. If the insured has enhanced the insurance plan with add-ons, a claim can be made if the insured is permanently disabled or is diagnosed with any one of the critical illnesses. In most of the cases, the claim is made by the beneficiary as the insured will not be in a state to submit the claim.
Tips to Make Home Loan Insurance Claim Process Easy for Your Beneficiaries
If you do not want your loved ones to be buried in a pile of paperwork, follow the following steps to make the home loan insurance claim process easier for them:
Be honest when purchasing the policy: It is very important that you are honest when you purchase your home loan insurance plan. If you are suffering from any pre-existing ailments, you will have to declare them honestly. In case of any eventuality, when your beneficiary is making a claim and the insurer rejects the claim as you did not declare complete information when you purchased the policy, your beneficiary will have to bear the brunt.
Update beneficiary details regularly: One of the most important things you have to do when you purchase any kind of insurance is to update the right beneficiary details. If you updated your parents as your beneficiaries and got married later, it is your responsibility to go ahead and add your spouse as a dependent/beneficiary. Your home loan insurance claim may be rejected if the beneficiary details is not updated. Take some time out to check the nominees on all your insurance plans to be on the safe side.
Understand your home loan insurance plan: Understanding your home loan protection insurance plan is very important. There are many exclusions in any insurance plan. Please read your policy documents clearly and know the limitations. Many assume that the beneficiaries will get a lump sum maturity amount when they make a home loan insurance claim. However, that is not true. The insurer will only cover the outstanding home loan amount.
Talk to the beneficiary: Your home loan protection plan are not a secret. It is very important to sit down with your beneficiaries and tell them about the plan. When you fail to do so, your dependents will not be aware of such a plan and will not make a claim in your absence. Tell them about the plan, how it works, the claim process, and leave a phone number they can call if required.
Keep all the required documents in one place: Documents play a crucial role in insurance claim process. To process a claim, your insurer will need all the relevant documents. Do your loved ones a favour and leave all the documents required to process a claim like your identity proof, address proof, policy document, and any other documents required in a file in a safe place. Let your beneficiary know about the same. This will help them greatly when you are not around.
Make sure all premiums are paid: One of the main reason insurance claims are rejected these days are because of outstanding premiums. If your payment is not up to date, your insurance policy may be void.
The bottom line
It is not mandatory to have a home loan insurance plan in our country. It is optional and you can choose to ignore it. But if you do have one, make sure you follow these simple steps to make the home loan protection plan claim process easier for your beneficiaries.
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I have taken Home loan directly through Corporation Bank .I have applied for the loan amount of 12 lakhs for the tenure of 18years .More documents collected for this home loan and got the loan amount on time and it was really sufficient .There was no drawbacks faced so far .I am satisfied with the service .
I had applied for home loan with HDFC limited on few months before, they have sanctioned a loan for 22 lakhs but due to some problem of my builder from my end I kept on hold for the loan process. They have detected for the processing fee of 11 thousands but they refunded 9 thousands rupees. The tenure of 15 years. Interest rate was nominal of 8.55%.
With HDFC limited I have taken home loan on 8 months before which was processed through them directly. They have approved for 8 lakhs but as of now I have taken only for 5 lakhs remaining 3 lakhs I will get later from their end. Due to shop will come in commercial loan so I have split the loan amount to get it. For the tenure of 15 years. The processing fee for 5000 rupees. The rate of interest 8.8%, they have sanctioned the loan within one month.
I have availed Home loan directly through Punjab National Bank .The rate of interest and the processing fee was very high ,I have got the loan amount on delay basis and i have applied for 26 lakhs for the tenure of 15 years.I have not faced any difficulties until i have received the loan .
SBI Home Loan is excellent because I've a salary account with them. They offered me a interest rate of 9.5% approximately. I took the loan amount of Rs. 23 lakhs so far i have got only Rs. 16 lakhs since my building is under construction. My EMI is not yet started. They sanctioned the loan in 2 working days.
SBI is a best bank and they had a better option. There is only simple documentation required and executive came to my place for collecting all the documents. I got the loan within 7 days. SBI did not taken any processing charges and they gave better and cheap interest. They take minimal time and better response from the customer care so i had chosen SBI for my home loan.
My home loan was purchased from Central bank of India. The branch offer was approved the loan immediately and they had a good behavior with the customer. I got the better clarity about the loan process as well as the rate of interest in central bank of India is less than compared to others so i have chosen this bank and the Branch Manager helped me in a better way.
From DHFL I have taken a home loan almost more than a year. One of my cousin's friend working there he recommend to apply for a home loan. The process was smooth and sanctioned a loan within 6 days with sufficient amount of 20 years. The rate of interest was high.
ICICI bank has provided me a home loan at the time of i want on a immediate basis. Since the necessity is over they have provided me a timeliness loan. I taken the loan amount of Rs. 10 lakhs and the have charged me a higher interest rates which i'm not comfortable with.
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DIVYESH PRATAPBHAI FERFA
Reviewed on Oct 05, 2019
I have balance transfer for a home loan with existing finance to HDFC LIMITED. One month before only I have a transfer of a loan. They have outstanding amount of 10 lakhs for the tenure period of 10 years. The rate of interest is 8.6% only for mortgage charges for 8 thousands need to pay for it.
I have taken a home loan with SUNDARAM FINANCE on 10 years before which was processed through them directly. The amount which was given for 13 lakhs for the tenure period of 20 years. There was lot of issues I faced with them customer service is not good response. The rate of interest was high of 14% compare to other.
I have taken home loan directly through State Bank Of India .The rate of interest and the processing fee was nominal ,I have got the loan amount on time and got a clear picture about the loan process ,I have availed this loan for the tenure of 20 years .I have completed only 2 years of EMI so far .,
I have taken Home loan directly through Central Bank OF India ,I have got the loan on exact time ,The rate of interest and the processing fee was nominal ,I have got all the details about this loan very clearly through bank agent.The process was very easy and still this loan is active .
Nearly 11 years before I had taken a home loan with STATE BANK OF INDIA which was processed directly to them.The loan amount was sufficient for the tenure period of 15 years. The rate of interest and processing fee are nominal. They have sanctioned a loan within few days and the process was good.
I have just applied the home loan from Central bank of India. I had a reference over there hence i applied the home loan from Central Bank of India. Documentation process was hassle free. They have offered me a interest rate of 10.1% and the processing fee was 1% of the interest amount +18% GST charges. They have dispatched the loan 20 days. The staffs are so friendly
HDFC was the only bank which is offering for the home loan in the area where i have purchased the house so i opted with HDFC LIMITED. I had applied the loan amount of Rs. 28 lakhs and the given interest rate is 8.5% and they charged me a processing fee of nominal one. I took the loan 3 years ago and they took 40 to 50 days to sanctioned the loan.
I took a home loan with PNB Housing Finance Ltd because the terms and conditions are very liberal at that time, I have been expecting higher loan amount for my purchase. They have fulfilled my requirements and its more than 90%. The rate of interest is little bit higher and they are not following RBI guidelines. When interest rate is increased, they have started charging more but not reduced when it got reduced.
I have completed my home loan with HDFC BANK before 3 years ago. I did foreclosure and that time the interest rate is not much. I bought a residential property and the loan procedure is very easy because my papers are strong and clear to proceed faster.
I have applied for Home loan directly through Bank Of Baroda and got the loan on stipulated time .This loan was upto 15 years and got the loan amount on time ,The agent gave all the required information about the loan process .I have got all the required details about the loan process and there was no drawbacks faced as well.
I am not happy with rate of interest which was given by LIC Housing Finance. I have purchased the Flat in 2017August. The loan amount was 40L and its 15 years tenure. The processing fee is not applicable. The customer service is good. But every year, they are raising the interest rate which was not good.