Tata AIG Life Insurance has launched a Mortgage Reducing Term Insurance - a group insurance scheme with Tata Homefinance. The scheme which covers borrowers of Tata Homefinance, will wipe out the outstanding loan balance in the event of death of the borrower.
The policy, a 24-hour worldwide insurance plan, covers the home by settling the mortgage outstanding in the event of death of the borrower.
In addition, the Mortgage Reducing Term Insurance programme offers cover, as an option, for total and permanent disability.
Tata Homefinance has arranged for this cover through the group policy purchased from Tata AIG. The policy will be in the name of Tata Homefinance and the borrowers will be able to opt for the insurance cover at the time of obtaining a mortgage loan from them.
According to a statement issued by both companies, the group insurance has the advantage of lower costs, higher loan eligibility, single premium and medical check-up facility.
"Mortgage Reducing Term Insurance is a policy that has been customised for Tata Homefinance. This plan allows the beneficiary to pay off the entire mortgage loan outstanding from Tata Homefinance in the event of loss of life or total and permanent disability thereby relieving the family members from the burden of repaying the outstanding in the housing loan account," said George Oommen, managing director, Tata AIG Life Insurance.
"As a step toward providing the market with an innovative product, we are pleased to announce the launch of Mortgage Reducing Term Insurance programme, an insurance linked mortgage product being offered along with our group company," said Hemant Wagh, chief operating officer, Tata Homefinance.