At the time of taking loan from SBI, towards the end of the processing I was mandatorily asked to take the insurance from SBI Life ( I guess it is called Home Loan Protection Plan) . They gave two options, one shot premium for covering 20 years and yearly insurance renewal. Since I lacked the knowledge and did not want to delay the process I then chose the annual option with premium of about 13k. Now that was in 2015 July. However I did not get any reminders or any alerts for renewal and when I checked the status recently it said it is in Lapsed. When I checked the revival quotation its 25k+ .
Do I need to renew it? Can I not surrender and take the inurance from another vendor for all rest of the years at once. Please advise.
Tx
harig3
1 Answers
Hi,
Generally there wont be any surrender value in these kind of HLPP plans.
Either you need to revive the current plan (or) you need to buy a fresh HLPP policy.
In case, you have any life insurance plans (ex- Term life plan), you can assign it to your home loan. You may check this option with your lender.
Kindly note that it is not mandatory to buy a HLPP policy while taking a home loan. But it is in the best interests of buyer/lender, it can be taken. But most of the banks insist the home loan buyer to take it.
Related article :
https://www.relakhs.com/assignment-life-insurance-policy-collateral-loan/
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