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Sarvam
Visitor
Posts: 1
Registered: ‎01-02-2018

Home loan insurance

I have prepaid my home loan within in 1 year actual tenure was for 20 years, for this i have also taken insurance also during repayment of complete home loan they have asked me to pay the complete insurance amount which is 2 lakhs, they said if i dont pay the insurance amount my documents will not be given, is it mandatory to pay the insurance amount for which iam not using.
1 REPLY 1
Vishal Sharma
Occasional Contributor
Posts: 7
Registered: ‎20-09-2017

Re: Home loan insurance

Hey, I don't think if it is compulsory to continue insurance if you have foreclosed the loan amount. 

You should contact your Insurance Company and find out the procedure for cancellation of Policy.

Generally, once the loan amount is paid, Borrowers Liability is over. 

Covering Home with Insurance is Important nowadays, but not sure if it is compulsory even if you have paid the loan amount.

Generally, Insurance Company requires few documents for cancellation. 

Instead of talking to your bank you should contact your insurance company ask them for the procedure of same.