How Can I Apply for a Home Loan Insurance?

Home loan insurance is designed to protect your family from the financial burden of outstanding housing loan repayments if something unexpected happens. It ensures that your home loan is repaid even in situations such as death, disability, or critical illness (based on the insurer and chosen plan). Applying for home loan insurance has become simpler today, thanks to online processes and instant verification systems. Let us take a look at how to apply for a home loan insurance, how to buy, and how the process works, and more.

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What Is Home Loan Insurance?

Home loan insurance (also known as mortgage insurance) is a protection plan that covers your outstanding home loan amount in your absence. If the policyholder suffers an untimely death during the loan term, the insurer will pay off the remaining loan, which makes sure that the family does not lose the property or bear loan repayment burden.

How to Apply for a Home Loan Insurance?

You can apply for a home loan insurance through your home loan provider or directly with an insurance companies. Most insurance companies now let you apply online.

Assess Your Home Loan Details

First you need to check your loan amount, tenure, age, and any existing health conditions. These factors help you find the suitable premium and eligible coverage.

Compare Mortgage Protection Plans

Look at different mortgage protection insurance options. Compare coverage, premium, claim settlement ratio, flexibility to change lender, and whether the cover reduces with loan balance.

Term Plans

₹1
Crore

Life Cover

@ Starting from ₹ 13/day⁺

₹50
LAKH

Life Cover

@ Starting from ₹ 8/day⁺

₹75
LAKH

Life Cover

@ Starting from ₹ 12/day⁺

Choose the Coverage Type

Most of the time, home loan insurance options contain:

Level cover (the amount of coverage stays the same)
Reducing cover (coverage goes down as the loan goes down)

Complete the form for the online application

You need to give your personal information, loan information, and nominee information.

Upload the documents that are needed

To buy home loan insurance, you usually need to show proof of identity, proof of income, a loan sanction letter, and proof of address.

Do all the medical checks that are needed

Depending on their age or health history, some applicants may have to take basic medical tests.

Pay the Premium

According to the rules of the lender and the insurer, the premium can be paid all at once or added to the loan EMI.

Receive Policy Issuance

On the successful approval of a home loan insurance application, your policy document will be issued.

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How to Buy Home Loan Insurance?

You can buy mortgage loan insurance either through your bank at the time of taking a home loan or directly from an insurance company.

Through Your Lender: Banks often suggest a home loan protection plan when you take a loan. You can evaluate it, compare costs, and decide if it fits your needs.
Directly From an Insurer: If you prefer more flexibility, you can buy a mortgage protection life insurance plan directly from an insurer. This lets you compare prices and features online before committing.
Through a Term Insurance Policy: Many people choose a term insurance for home loan with adequate coverage instead of HLPP because the benefit goes to the nominee and offers higher flexibility.

What Is the Process of Getting Home Loan Insurance?

The process is simple and made to protect your home loan quickly.

Assessment: The insurance company will check your loan amount, age, and medical history to see if you are eligible or not.
Proposal Form: You fill out a form that asks for information about your income, lifestyle, and medical history.
Verification and Medicals: The insurance company may ask for documents or do a medical test if they need to.
Approval: The insurance company will approve your policy and send you a certificate of insurance once it has been checked.
Assignment to Bank: Many policies automatically go to the lender, so the bank will get the money directly if a claim is made.

* You can use a home loan insurance calculator to check the premiums you would need to pay for your home loan insurance.

Who Needs Home Loan Insurance?

Profile	Why They Need Home Loan Insurance
First-time homebuyers	TPeople who are buying home for the first time, often take large loans, and insurance makes sure that the loan is repaid if something unexpected happens.
Primary income earners	Families depend on their income, so the insurance protects them from EMIs in case of the breadwinner’s death.
People with long tenures	A longer home loan term increases the risk, and a home loan insurance helps you prepare against that risk.
Individuals with limited savings	They may not have enough reserves to handle loan repayment during emergencies.
Borrowers without term insurance	Home loan insurance offers basic protection if they do not have a personal term insurance plan.

Key Points Before Applying for a Home Loan

Understand the Type: Home loan insurance is a life cover that protects the lender by settling the unpaid debt in case of unfortunate cases. It is different from home insurance, called property insurance, which covers damage to the physical structure of your home due to events such as floods, fire, or earthquakes.

Coverage tenure: Make sure your policy term matches your period of loan repayment.

Read the fine print: You need to carefully review the policy T&Cs, exclusions, and claim procedures.

Communicate with Nominee: Inform your family/nominee about the policy details, where the documents are stored, and claim process to ensure they can make a claim smoothly if needed.

Final Thoughts

Home loan insurance is a great way for Indian families to secure their finances and make sure their homes stay safe from the unforeseen risks. Whether you are looking to apply for home loan insurance, buy it online, or understand the complete process, the steps are now simpler than ever. Additionally, knowing how to leverage life insurance policies for loans gives you extra financial flexibility when needed.

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FAQ's

Q1: How do I get a loan on my life insurance policy?

Ans: You can get a loan against your life insurance policy by calling your insurance company or going to their closest branch. They will check to see if your policy is eligible for a loan, confirm the surrender value, and help you with the paperwork. Once your application is approved, the money for the loan goes straight into your account.
Q2: How do I get a loan against an insurance policy online?

Ans: Most insurance companies now let you apply online. You just need to log in to your insurance company's customer portal, fill out the required information, and upload the files. After verifying and approving the loan request, the insurance company will pay the loan amount.
Q3: How much money can I borrow against my LIC policy?

Ans: You can borrow against your LIC policy an amount between 80% and 90% of the cash value collected. The exact amount depends on the type of policy you have, how long you've been paying premiums, and the current value of the policy if you give it up.
Q4: Is it possible to get insurance for my home loan?

Ans: Yes, you can. Home loan insurance is easy to get and helps your family pay off the loan if something happens to you. It makes sure that your family can keep the property without having to worry about money.
Q5: What insurance do I need for a home loan?

Ans: You need a home loan protection plan or a term insurance plan with a cover amount equal to your outstanding loan. Both options make sure that your family does not have to deal with the burden of EMIs if you are no longer around.
Q6: Is home loan insurance refundable?

Ans: In most cases, you can't get your home loan insurance back after the policy starts. If the loan is paid off early, the insurer's terms and conditions will determine if a partial refund or adjustment is possible.
Q7: What is the cost of home loan insurance?

Ans: The cost of home loan insurance depends on the loan amount, term, age, and health of the loan borrower. It is usually paid as a one-time premium or added to the loan, so the amount differs for each person.

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˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Rs. 400/month is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 400/month (Rs.13/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs.679/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,374/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

Women

+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.

1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 years of age.

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale

Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

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