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|9th July 2007, 17:51||#1|
Join Date: May 2007
Insurance on a car loan in case you die
Is there something such as insurance on a car loan in case you die or are otherwise incapacitated so your wife/family are not burdened with a car loan or do not have to sell it off?
Is this included as a standard procedure with most car loans (such as ICICI/UTI/etc.?) Yes, I know some people don't like ICICI, but it's also the No. 1 financier, for better or worse.
Or do you get it from outside? Such as LIC or Prudential, etc.? Would it be just normal term insurance? And what if you die, would your family have to show all sorts of paperwork, FIR, marriage certificate or birth certificate, etc., or is payment just straigtforward made to the nominated person in the policy?
|9th July 2007, 18:58||#3|
Join Date: Dec 2004
Thanked: 6,144 Times
SBI did have an insurance for the car loan that I took but I did not opt for it for two reasons:
1) I am very optimistic about my survival.
2) The premium asked (although not much) was to be paid each year .
But to answer your queries, there are a few banks that offer an insurance but they become suckers in case you decide to claim insurance. No one is going to foreclose a loan incase the outstanding is close to a few lakhs by taking a paltry premium.
|9th July 2007, 19:36||#4|
Join Date: Mar 2005
Thanked: 2 Times
the car owner can get a straight life insurance for amount of car loan...
So in case of the unfortunate event, the nominee can pay off the car loan from the funds received from life insurance company...
|9th July 2007, 19:54||#5|
Join Date: May 2007
Thanks for the replies.
So, does anybody know what the approximate cost of a life insurance policy for 8.5 lakh for 5 years should be?
Or should you go for a longer term than the length of the loan?
|9th July 2007, 20:16||#7|
Senior - BHPian
Join Date: Aug 2006
Thanked: 837 Times
Please visit: Life Insurance Corporation of India.Choose a term policy and find out the premium.
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