Objective

This policy aims to protect your family from the liability of a home loan in the event of your death.

What does it do?

This home loan assurance plan pays outstanding loan amount to the nominee in case of unfortunate demise of the insured. This is a decreasing sum assured plan where the sum assured decreases as the loan is repaid.
The policy can also cover joint lives. The death benefit in this case becomes payable upon first death of any one of the co-borrowers. The policyholder has an option to add premiums to the loan amount and repay it as a part of EMI. It allows to take a policy term of maximum of 25 years. If borrower wishes to get insured for a period less than the loan tenure, he can opt for a fixed period coverage of 10 years. This feature is available for a loan term of 15 to 25 years. This policy covers increase in EMIs or loan amount due to rising interest rates. However, if the interest rate falls resulting in decrease in outstanding loan amount, the insurance company will pay higher of the outstanding loan as per policy schedule, as the death benefit. If death benefit is more than the outstanding home loan amount, the excess amount will be paid to nominees.
If home loan term includes construction period as well, the policy in case of any eventuality during that period, pays full sanctioned loan amount which can be used to repay the partly disbursed home loan and the builder. However, construction period coverage is limited to 3 years.
If the borrower prepays the home loan, the policyholder can either surrender the policy and receive surrender value applicable on that date or continue to enjoy the homesurance cover. In case of any unfortunate event, the amount as per policy schedule will be paid to the nominee. However, there is no guaranteed surrender value.The cover continues even if loan is transferred to another home loan company.

Pros

The plan covers full loan amount even if the loan is construction linked and paid in stages.
It covers increasing outstanding home loan due to increase in interest rates.
It provides flexible policy benefit term.
It provides insurance for joint lives.
The policy gives discount on advance payment of premiums (commuted premiums) and premium rates for females.
Premiums qualufy for taxation benefits.

Suited for

This policy is suitable for anyone who has a loan liability overhead or is planning to take a loan in future.

Our View

IDBI Federal's Homesurance Protection plan is an all-inclusive home loan insurance cover with options to alter the plan as per requirements and ease. Anyone with outstanding home loan liability or plans to take a home loan can consider this policy.

Eligibility

Entry Age (years)

Minimum

18

Maximum

60

Maximum Maturity Age (years)

70

Policy Term (years)

Minimum

5

Maximum

25

Sum Assured (Rs)

Minimum

100000

Maximum

No limit

Premium Payment Frequency

Yearly

Premium Payment Term

3/5/10 installments or repayment as loan EMI. 5 and 10 premium payment term is available if home loan term is 10/ 15 years or more.

Policy Cover

Cover decreases in line with decrease in outstanding loan amount

Other Features

Free Look Cancellation

In case, you are not satisfied, you may choose to cancel the policy within 15 days of receiving the policy documents. Upon such cancellation, you will be paid back the premiums, minus the cost of stamp duty, medical reports and proportionate premium for the period for which the risk was covered.

Grace Period

You are allowed to pay premiums within 30 days from the due date. If a due premium is not received within the grace period of 30 days, your policy will lapse and the life insurance cover will be terminated.

Lapsed Policy Reinstatement

You can reinstate your lapsed policy any time (within 2 years from the due date of the first unpaid premium) by paying all the due premiums with interest and undergoing underwriting requirements, if any.

Tax Benefits

Section 80C, 10(10D) of the Income Tax Act, 1961 would apply.Premium paid is eligible for tax deduction as per current income tax act.

Exclusions

In case of death by suicide during the first policy year, or within one year from the date of reinstatement, no death benefit is payable.

Surrender Value

Not guaranteed

Customer Service

Address

IDBI Federal Life Insurance Co Ltd
First Floor, Tradeview,
Oasis Complex, Kamala City,
P. B. Marg, Lower Parel (West),
Mumbai - 400 013, Maharashtra.