SBI Life Insurance, a joint venture between State Bank of India and Cardif SA of France, on Monday signed a strategic tie-up with private sector Federal Bank Limited (FBL) to provide home loan insurance scheme for FBL customers.

As part of the agreement, housing loan customers of Federal Bank can avail of SBI Life's unique home loan life insurance cover, SBI Life Insurance Managing Director and CEO S Krishnamurthy, told a press conference here.

Federal Bank offers this unique facility, 'Federal Home with Life' to housing loan customers, who will now have the option to choose a life insurance cover by paying a one-time premium, he said.

"This product reduces the uncertainty and risk upon the home loan borrower's family. Our product has been specifically designed and customised to safeguard the interest of the home loan borrowers," he said.

This policy is available to both existing as well as new customers of Federal Bank. Both individual and joint home loan customers are eligible for life cover for a term between five and 20 years. In the case of joint home loan customers, the younger borrower can get life cover at an additional premium of 50 per cent of applicable premium, he said.

The plan is available for the 18-60 age group and the maximum cover is available upto 71 years, he said.

Under this policy, in case of the unfortunate demise of the borrower, SBI Life Insurance would repay the outstanding loan amount, including interest calculated as per the original EMI directly to the Federal Bank, he said.

(www.hindu.com)