Individual buys a house by borrowing money and diligently pays the EMIs (Earnest Monthly Installments), but what happens if he/she meets an untimely death.
The family has to bear the emotional and financial challenges.
Hence if anyone is opting for a home loan, an insurance cover equivalent to the home loan is essential to protect the future of his family.
What is Mortgage redemption Insurance? It is an insurance plan designed to cover the outstanding liabilities of the life assured to repay the balance on a mortgage loan if he or she dies before its full repayment.
The insurance cover reduces every year in line with the loan redemption and finally becomes zero on closure of the loan.
No maturity value is available under the policy.
It works like a pure term insurance plan.
Insurance premium Insured can either opt for a single premium for the entire mortgage amount or pay constant yearly premiums.
These plans provide lower premiums as the insurance cover reduces each year Mortgage redemption Insurance - Policies in India One of the flagship products in the redemption Insurance field is the Mortgage Redemption Assurance policy (without profits) plan by LIC.
Mortgage Redemption Assurance policy (MRA) - Terms and Conditions Insured will bear the cost of the medical examination.
MRA Policy is usually issued only to male aged 50 years or lesser.
MRA policy bears no surrender value.
Insurance cover under Mortgage Redemption Assurance policy would not extend beyond 65 years would not extend beyond 65 years.