Policy change in case of Home loan balance transfer

[gaurav_gupta]

In 2008 I took the home loan(20 Lakh for 20 years) from ICICI bank and that time I opted ICICI home assure policy. In that policy I gave one time payment of somewhere around 40,000.Now in 2011 I have transferred the home loan from ICICI to SBI. So I am planning to stop the policy from ICICI pru and start another policy with SBI. ICICI told they will revert 70% of the amount paid. Is this is a good decision? Or there is any other better option.Gaurav

[>take]

ICICI Pru Home Assure is a single premium term insurance plan. As per company website -
If I foreclose my loan or transfer it to another company?
Surrenders will be payable only in case of full prepayment or balance transfer of the loan. The surrender value will be calculated as:
1- 70% of the single premium * (outstanding term at surrender / original term).
2- The surrender value will be payable only if the amount is not less than Rs. 250.

So you will only get 70%. As you have just took the home loan in year 2008 and only 3 year since you started paying the premium, I would wait. 3 more years so that I would get the benefit for 6 years, which is 30% of 20 Years. So that what ever amount I had paid, I have recieved in benefit.

Source - ICICI Pru Life (http://www.iciciprulife.com/public/Life-plans/Home-Assure.htm)

[>take]

Always opt for term insurance. Read more here (http://www.policywala.com/content.php/295-Mortgage-Insurance-or-Term-Insurance-Which-one-is-best-and-cheapest)

[Madhura]

In 2008 I took the home loan(20 Lakh for 20 years) from ICICI bank and that time I opted ICICI home assure policy. In that policy I gave one time payment of somewhere around 40,000.Now in 2011 I have transferred the home loan from ICICI to SBI. So I am planning to stop the policy from ICICI pru and start another policy with SBI. ICICI told they will revert 70% of the amount paid. Is this is a good decision? Or there is any other better option.GauravGo for term plan, it will be cheaper then your current plan.

[gaurav_gupta]

I have two doubts in my mind:1)I am able to continue ICICI home assure policy with SBI home loan? As I already transferred the home loan from ICICI to SBI. What are the formalities need to done from my side in case of home loan balance transfer from ICICI to SBI ?2) I have already took the" Level term to age 60 plus plan from Max Newyork life insurance " should I also need to take any other term plan in addition of this for my home loan

[>take]

I have two doubts in my mind:1)I am able to continue ICICI home assure policy with SBI home loan? Yes, you can.
As I already transferred the home loan from ICICI to SBI. What are the formalities need to done from my side in case of home loan balance transfer from ICICI to SBI ?Please ask SBI.
2) I have already took the" Level term to age 60 plus plan from Max Newyork life insurance " should I also need to take any other term plan in addition of this for my home loanAny plan would be good. I was suggesting the cheapest and basic cover.

[gaurav_gupta]

As my home loan (SBI Max gain) of amount 20 Lakh (approx.) transferred from ICICI to SBI. I have also surrendered ICICI home assure policy.

Now suggest me some good insurance policy for home loan (20 lakh). I think as I have a loan from SBI so it is better to go with SBI insurance (suggest me if I am not correct on this point)

Right now I already have below mentioned policies:
ICICI crisis cover (maturity till 2018)
Max Newyork life –Level Term to age 60 Plan and Sum assured 20 Lakh

Please suggest me some good policy for my home loan assurance (20 Lakh).

[Manish_Kumar]

You can opt for ICICI Pru Life’s I-Protect or Kotak Life’s e-term and e-Preferred Term.
Source - Top 5 Online Term Insurance Plans (2011) (http://www.policywala.com/content.php/260-Top-5-Online-Term-Insurance-Plans-(2011))

[gaurav_gupta]

As I have a home loan with SBI so is it good if i will go with ICICI or some other vendor as mentioned in your above link.
Actually I have a question that term insurance is better than home assurance plan in case of home loan. And I have mentioned above that I have a poli cy with Max New York life insurance-Level term to age 60 plan and sum assured 20 lakhs. So it good if I will go with ICICI Pru iprotect or some other like that.

[>take]

Term Insurance is better than Mortgage Insurance - Check article here (http://www.policywala.com/content.php/295-Mortgage-Insurance-or-Term-Insurance-Which-one-is-best-and-cheapest).
You can buy any company insurance plan,no problem in that.