LIC Home Loan Insurance

You can pick how you pay the premiums, either all at once or through regular monthly installments.

Read more to know about LIC housing loan insurance in detail.

What is LIC Home Loan Insurance?

LIC Home Loan Insurance is targeted protection that covers loan repayment default risk on death, disability, or major illness. It can be used to settle the outstanding home loan amount, thereby ensuring peace of mind for you and your family. The plan is designed by LIC of India to provide financial assistance to the family of the loan borrower in the event of such events, thereby relieving the family from the burden of loan repayment. It provides the family of the borrower with a debt-free position by ensuring the outstanding loan amount is settled.

In India, many borrowers avail their housing loans from institutions like LIC Housing Finance Limited (LIC HFL), which is one of the top housing finance companies in India. In case of taking a housing loan from a lender like LIC HFL, one of the factors that loan buyers consider is the home loan insurance that can secure their liability in the loan in case of unexpected circumstances.

Coverage Offered by LIC Home Loan Insurance

Just like a term insurance plan, LIC Home Loan Insurance gives pure financial protection. If something of the following happens, the policy pays back what is owed on the house loan:

• Death of the borrower

• Permanent disability due to accident or illness

• Critical Illnesses that could prevent a person from earning money, making it hard to repay what they loaned.

It’s essential to assess LIC housing loan insurance coverage to ensure it aligns with your loan requirements and personal circumstances.

Read about LIC Term Insurance plans here.

Who is Eligible for LIC Home Loan Insurance?

Eligibility for LIC Home Loan Insurance depends on various factors, such as:

• The borrower's age

• The amount of the loan for the house

• The borrower's health status

• The job status (self-employed or salaried)

• Self-employed individuals can obtain LIC home loan insurance as long as they submit the required paperwork. In the same way, LIC offers home loan insurance for salaried workers with a few requirements.

How to Apply for LIC Home Loan Insurance Online?

Applying for LIC housing loan insurance online is simple and can be completed in a few steps:

Step 1: Launch the LIC website and select a plan: Enter the official LIC website and find the section related to home loan insurance. See what plans are offered and pick the one that fits your loan amount and tenure.

Step 2: Input details using the premium calculator and application form: Firstly, the LIC home loan insurance premium calculator can be used to find out how much premium is to be paid. Secondly, the online application form should be filled with personal details and also loan and employment information.

Step 3: Document Upload: Send identity proof, income proof, and the home loan agreement among other things for verification.

Step 4: Online Payment of the Premium: After this, pay the premium through the LIC home loan insurance online payment method. After the approval, the policy confirmation and document will be sent to the customer.

Note: Know about How Can I Apply for a Home Loan Insurance?

LIC Home Loan EMI Calculator

LIC Home Loan EMI Calculator is a smart online tool borrowers can use to get a rough idea of their monthly loan repayment amount or EMI (Equated Monthly Installment) even before they apply for a home loan.

Besides helping you plan your finances more effectively it is also an eye opener in terms of how much you will need to shell out every month.

How the LIC Home Loan EMI Calculator works?

Basically the calculator asks you for the following information:

• Monthly EMI amount

• Total interest payable

• Total repayment amount

Upon providing these inputs, the calculator gives you the following results instantly:

You can use this information for exploring various loan options and selecting the one which suits you best.

LIC Home Loan Insurance Claim Process

Filing a claim with LIC is relatively simple. To start the process, you need to inform LIC of the event (e.g., death, disability) and submit the required documents. These may include:

• Policy document

• Death certificate or medical reports

• Home loan agreement

The LIC home loan insurance claim process is designed to be efficient, ensuring that the family or borrower’s legal heirs are not left without support.

LIC also has a high claim settlement ratio, making it a reliable choice for homeowners seeking financial protection.

What Are the Benefits of LIC Home Loan Insurance?

Here are some of the benefits of LIC housing loan insurance that make it a worthwhile choice for borrowers

• Protection for Loan Repayment: The moment a borrower is disabled or afflicted with a serious illness, there is no need for them to use their own funds to liquidate the home loan. This allows homeowners the liberty to utilize their money.

• Easy and dependable financial planning: Becoming aware that the family will not be left grappling with a huge debt after a crisis can be very reassuring for borrowers. It is one of the ways how you can relax yourself during tough times.

• Peace of Mind for Borrowers: Knowing that your family would not be burdened with repaying the loan in the event of a calamity gives one a huge relief.

• Flexible Premium Payment Options: Insured individuals have the opportunity to select premium payment schedules that will be easiest on their pockets. Such flexibility is very supportive in stabilizing our finances.

• Tax Incentives: According to Section 80C of the Income Tax Act, the insurance premium paid is exempt from income tax. It reduces your tax liability and accumulates savings for you in the long run.

Documents Required for LIC Home Loan Insurance

The following documents are usually needed to apply for LIC Housing Loan Insurance:

• Agreement for a home loan

• Proof of identity (Aadhaar, passport, etc.)

• Proof of income (for people who work for someone else or for themselves)

• Medical reports (if they apply)

Summing Up

LIC Home Loan Insurance provides essential financial security for homeowners by protecting their families from the burden of loan repayment in case of unexpected events. Whether you are looking for comprehensive coverage, flexibility in premium payments, or the ability to make online payments, LIC offers a good solution. Carefully assess your eligibility, review the premium calculator, and check the claim settlement ratio before committing to the policy.

FAQs