Those seeking loans to buy a house or a car now have access to a larger suit of life and general insurance products, which offer insurance cover against unemployment, critical illness, personal accident, etc - factors that could affect their ability to repay loans.
SBI General Insurance recently launched a loan insurance policy providing protection against the above-mentioned fortuitous events. The policy covers 13 critical illness with survival period of 28 days or more. The personal accident cover includes death or permanent disability due to unforeseen accidents. And, in case of loss of employment, three equated monthly instalments (EMIs) are paid for the outstanding loan, said Gunjan Ghai, senior vice-president (marketing and product development) at SBI General Insurance. Other insurers such as Bajaj Allianz General Insurance have also spotted demand in this space. Its head of product development, R Suresh Nair, says loan protection covers are popular among customers.
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