1. No, there's no mandatory clause in a home loan agreement for buying an insurance to cover the loan liability.
2. Lenders do offer it with home loans due to tie-ups with insurers, but one can buy it independently as well, say a term plan, or even not buy any at all.
3. However, as the onus of handling the loan taken is entirely yours, if the family defaults on it when you're not around, then the lender will dispose off your property to recover its dues.
4. Offer and acceptance is a legal principle of an insurance contract, where offer is made by prospective client and insurer may accept, reject or make a counter-offer.
5. The underwriter can even decline an insurance proposal based on information collected from the proposal form, medical reports, etc., to protect the insurer's interests.
6. In some cases, an insurer may charge additional premium due to this, for people who are subject to extra risks, instead of outright refusal of the proposal.
7. If all efforts are unfruitful, one may have to make do without any home loan insurance.
2. Lenders do offer it with home loans due to tie-ups with insurers, but one can buy it independently as well, say a term plan, or even not buy any at all.
3. However, as the onus of handling the loan taken is entirely yours, if the family defaults on it when you're not around, then the lender will dispose off your property to recover its dues.
4. Offer and acceptance is a legal principle of an insurance contract, where offer is made by prospective client and insurer may accept, reject or make a counter-offer.
5. The underwriter can even decline an insurance proposal based on information collected from the proposal form, medical reports, etc., to protect the insurer's interests.
6. In some cases, an insurer may charge additional premium due to this, for people who are subject to extra risks, instead of outright refusal of the proposal.
7. If all efforts are unfruitful, one may have to make do without any home loan insurance.