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Home Loans

Loan Protection

Home Loan | Resident Indian | Non-Resident Indian | Smart Home | Loan Protection | Contact me

Unfortunate events in life cannot be prevented, but you can still plan to protect your family against such mishaps. Especially when it comes to paying off your Home Loan installments.
Tata AIG Life Insurance Company Ltd.'s Home Loan Protection Plan (HLPP) is designed to safeguard your family from the burden of your loans. So you can rest easy knowing that even if something were to happen to you, the home you buy will remain with your family

Key Features

Low premium rates as it is a special group policy that HSBC has arranged from Tata AIG Life Insurance Company, especially for its loan customers.

In the unfortunate event of death or disability of the primary applicant of a Home loan from HSBC, the proceeds of the policy will be paid to HSBC to cover your loan balance. Surplus amount, if any will be paid to you or in the event of your death, to your nominee.

Option of paying a single lumpsum premium or with your monthly loan Equated Monthly Instalments(EMI).

Reducing Coverage of the Insurance as your outstanding loan amount reduces. This is reflected in the insurance premium that you would be paying.

Your Questions answered
What are the coverages offered by HLPP?
1.  Term Life cover OR
2.  Term life protection with Presumptive Total or Permanent Disability benefit. Presumptive Total and Permanent Disability benefit means that HLPP offers protection in the event of death and also covers total or irrevocable loss of sight of both eyes or severance of limbs above the wrists and ankles. Refer to terms and conditions below for further details.

grchennai@rediffmail.com

How do I make HLPP payments?
Once you have appointed HSBC as your administrator, their officers will collect the completed application forms and also the premium and then remit the same to Tata AIG Life Insurance Company Ltd. They can also tailor a Home Loan package especially for you.

Eligibility

Only HSBC Home Loan (mortgage) customers are eligible.
HSBC will act as an administrator for collections and remittances of premiums and submission of your application form to Tata AIG Life Insurance Company Ltd.

 

How do I apply for HLPP?
You will need to complete and sign the individual member application form. In the capacity of your administrator, HSBC will forward your form to Tata AIG Life Insurance Company Ltd., for further processing. A medical check-up may be required depending on your age and loan amount.

To whom will the benefit be paid?
Valid claims admitted by Tata AIG Life Insurance Company Ltd., will first be used to pay off your loan balance with HSBC. Any balance amount remaining after paying off the loan will be paid to you or in the event of your demise, to your nominee as mentioned in your application form.

What if I pre-pay or repay my Home Loan?
You will not lose the benefit of our Insurance cover when you pre-pay or repay your loan.
When does the cover start?
Your coverage will take effect once your application is approved by Tata AIG Life Insurance Company Ltd., the loan is drawn down and your premium is received by Tata AIG Life Insurance Company Ltd. The effective date will be reflected in a Certificate of Insurance that Tata AIG Life Insurance Company Ltd. will send to you.

What happens in the event of a claim?
In the event of a disability or a death claim, you or a family member will be required to give HSBC a written notice. If proof of claim is accepted and approved by Tata AIG Life Insurance Company Ltd., the insurance proceeds will be paid directly to HSBC to offset your outstanding mortgage loan. Any surplus over and above your loan amount will be paid to your nominee. However any shortfall would need to be paid by your next of kin. HLPP excludes any arrears in the loan repayment and interest thereon. Valid claims will be the sole responsibility of Tata AIG Life Insurance Company Ltd.

Feel free to contact me, Ganesh E mail - grchennai@rediffmail.com