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  1. sorry for the friends loss. if ur friends family possess any document stating the insurance premium paid, it would be fine. as they will have proof and they won;t have to pay the loan. try to find from bank to regarding the same.


  2. Normally banks extending housing loans ask the client to take a life insurance policy and if the client dies thereafter the whole loan is payable by under writers or the insurance co.. If bank is trying to dupe you you may ask for an answer under RTI. If it is a nationalized bank you may approach Ombudman appointed by Govt.