The Hindu Business Line : Central Bank home loans to have LIC cover

CENTRAL Bank of India in association with Life Insurance Corporation of India has launched a housing loan scheme with life insurance cover equivalent to the amount of the outstanding loan, said a press release from the bank.

The scheme is designed to help the heirs in case of death of the borrower. Usually, in such a situation, the heirs find it difficult to repay the loan and are forced to sell the property.

Home loan borrowers will have the option to take insurance cover on payment of a single premium. In the unforeseen event of death due to any reason the insurance company will pay the outstanding amount of loan. Cover will also be available even if construction of the house is incomplete and heirs can complete construction by utilising the claim amount.

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