The insurance cover provided by LIC on the home loan keeps on plummeting with the payment of the monthly installments. The LIC home loan insurance policy releases a heavy amount of money to the deceased policy holder’s family. However, it does not give any benefits to the applicant if he remains alive.
LIC’s Mortgage Redemption Assurance Policy is aimed at meeting the debt requirements of the policy holder who wants that his family holders don’t have to pay up the home loan once some misfortune befalls him. In order to avail this scheme the applicant has to bear up the cost of the compulsory medical examination. There is no surrender value in this policy and it is generally granted to applicants of 50 years or less. It does not cover any life benefits and the outstanding loans would be paid according to the fixed schedule.
The list below shows how the LIC Mortgage Redemption Assurance Policy works
Entry age - Minimum 20 years and maximum 50 years.
Mode of Payment- Quarterly, monthly, salary saving scheme, half yearly and yearly.
Sum Assured – INR 50000 (minimum) and 1000000 (maximum)
Maximum Maturity Age is 65 years.