EMI protect plan, is it worth considering ?

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Last Comment 2024-10-25

amanhere2011608

2024-10-24

Got a call from axis plan and executive told me about EMI protect plan for ongoing (car+PL) loan.

OFFERED 30K plan for 3 years covers EMI protection (upto 50-55L for any ongoing EMI) as well as some other nominal benefits. Then he reduced amount to 21k for 3 year.

Monthly around 800₹, Is it worth buying?

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https://www.desidime.com/comments/permalink/10430763

amanhere2011608

2024-10-24

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Yes kind of insurance...May be bank wants to safeguard their money by introducing EMI.

.. in case something happens to the EMI payer, his family won't have to pay EMIs.

Also covers 25L death cover for nominee.

https://www.desidime.com/comments/permalink/10430778

DEEPANGEORGE

2024-10-24

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@amanhere2011608

as far as i know family can't be prosecuted as per law, for failure of EMI due to accounted person being no more,

but the property will be prosecuted and resold incase of EMI paying party gets to heaven

a) for personal loan EMI if the main person is no more: family is safe if its personal loan (bankers cant push it on family as per law, your family can file court case and bank has to shut it as NPA and forget it as per law for personal loan as family is not included in the guarantee in case of personal loan)

b) for property loan EMI if the main person is no more: the family is not obliged to pay EMI but the family will lose the property if the EMI is not paid (so family will lose property/house but they are not forced to be burdened by bank officials, family can simply let go of house for peace of mind)

so based on this decide smile

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https://www.desidime.com/comments/permalink/10430739

DEEPANGEORGE

2024-10-24

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Whats the use of this EMI protect plan??

I am guessing it as insurance plan (correct me if I am wrong)

as far as i can feel, it sounds like insurance

insurance is 0 return IF YOU HAVE SERVICING AMOUNT FOR THE EMI WITHOUT FAIL

so if you have many streams of income to service emi (you will never fail to pay emi), then you will never need insurance,

its waste in my opinion

https://www.desidime.com/comments/permalink/10430763

amanhere2011608

2024-10-24

Link Copied

Yes kind of insurance...May be bank wants to safeguard their money by introducing EMI.

.. in case something happens to the EMI payer, his family won't have to pay EMIs.

Also covers 25L death cover for nominee.

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https://www.desidime.com/comments/permalink/10433807

roXtar007

2024-10-25

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The EMI Protect Plan is a type of insurance that helps you pay your loan installments (EMIs) if something unexpected happens, like getting sick or losing your job.

Cost Analysis

Total Cost Over Three Years: At ₹800 per month, the total premium would be around ₹28,800 (₹800 x 36 months).
Comparison with Other Plans: For instance, Bajaj Finserv offers an EMI Protection/SIP Cover starting at just ₹123 per month for up to ₹20,000 coverage for three EMIs in case of hospitalization, which totals about ₹4,428 over three years(Here is the plan).

Considerations

Financial Stability: If you have a stable income and can manage your EMIs without assistance, this plan may not be necessary.
Risk Assessment: Evaluate your risk of losing income due to health issues or other emergencies. If you're at higher risk, the plan could provide peace of mind.
Alternative Options: Look into other insurance products that may offer similar or better coverage at a lower cost.