With the right loan protection plan, you can ensure that in the event of the unexpected, your family doesn’t have to bear the burden of your outstanding loan. Choose from solutions designed to cover your liability and give you both protection and peace of mind.
Why You Need Loan Protection
Taking a loan (home loan, personal loan, auto loan, business loan) is a major financial step. But what happens if you face a critical illness, accident or worse? Without adequate protection, your family may be left with the outstanding loan amount and its burden. A loan protection plan ensures that your liability is cleared — the loan is paid off — so your family’s future remains secure.
Our Plans & Solutions
We offer specialised loan-cover insurance solutions. Each plan is tailored to meet your needs and protect your loan liability:
Key Benefits
- Comprehensive Life Cover for Your Loan – In the event of death (or other defined risks), the loan liability is cleared.
- Choice of Loan Cover Term – You can select the cover term matching the loan tenure.
- Protect Your Family – Ensures your family doesn’t become burdened with the outstanding loan or its repayments.
- Peace of Mind – Knowing that your liabilities are covered, you can focus on life without constant worry.
How It Works
- You take a loan (say for home/personal/business).
- Choose a loan protection plan whose sum assured corresponds to your outstanding loan or liability.
- You pay the premium for the term of the loan/cover.
- In the event of the insured’s demise (or other covered event) within the cover term, the insurer pays the outstanding loan amount to the lender on behalf of the borrower.
- The family is relieved of the loan burden — they do not have to repay the outstanding loan.
Who Should Buy?
- Borrowers taking significant loans (home, personal, auto, business).
- Co-borrowers/guarantors wanting to protect joint liability.
- Financial planners wanting to ensure that the borrower’s family is not burdened in case of an unfortunate event.
- Lenders/banks offering loans who want to provide protection cover options to borrowers.
Key Considerations & Notes
- Premiums depend on frequency of payment, premium type selected and underwriting.
- Tax benefits are as per applicable income‐tax laws and subject to change; you should consult your tax adviser.
- The plan documents (sales brochure, rider documents) must be read carefully for risk factors, terms & conditions.
- The insurer and loan-protection plan provider are separate entities from your lending institution; always ensure you understand relationships and responsibilities.
- It’s important to match the plan term & sum assured to your outstanding loan amount; any mismatch may reduce the effectiveness of cover.
Why Choose SBI Life?
- Trusted brand with a long history in life insurance and financial services.
- Strong customer service and depth of product portfolio including individual, group and loan-protection plans.
- Transparent disclosures and clear policy notices (including fraud / anti-phishing warnings).
- Dedicated to protecting not just lives — but also liabilities and financial futures.
Disclaimer
This content is provided for general informational purposes only and does not constitute an offer or solicitation to buy insurance. Products are offered by SBI Life Insurance Company Ltd. and are subject to terms, conditions, exclusions and underwriting. Tax benefits are subject to change under the Income-tax laws. Please read the sales brochure carefully before concluding the sale, consult your tax advisor and understand your responsibilities as a policyholder. Loans when repaid do not guarantee claim acceptance – conditions of the insurance policy apply in full. SBI Life Insurance Company Ltd. and SBI are separate legal entities.