Loan Insurance, Loan protection insurance or loan payment protection insurance, is a form of loan protection insurance. This type of insurance can help you protect your monthly loan payments (EMI) if you become unemployed or suffer an accident or sickness. Loan protection insurance is generally used to protect a personal loan, auto loan or car finance agreements. These finance companies offer loan protection insurance as part of the loan to earn commission on every policy sold. Home loan insurance plans, also known as mortgage redemption plans are policies that cover your home loan liability. Though there are some minor variants, most plans offer a sum assured that reduces as your outstanding home loan comes down every year.
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