HDFC Life Loan Cover Term Assurance Plan

HDFC Loan Cover Term Assurance Plan is a pure Protection Plan. This is a Traditional Decreasing Term Plan without Bonus facility. This plan has been designed to help family repay the home or personal loan in case of an unfortunate death of the Life Insured.

Death benefit

Income Tax benefit

Unique feature of covering joint life

Compare this plan with other Term Plans

Key Features

Pure Decreasing Term Insurance Policy

It is a pure Decreasing Term Insurance Policy with Death Benefit only

Option of single premium

There is an option of single premium payment in this plan

Unique feature of covering joint life

Additional rider

There is also an additional rider in this plan- Accelerated Sum Assured Benefit

The Sum Assured keeps decreasing every year as per the policy schedule

There is no Maturity Benefit in this plan

Death Benefit

In case of an unfortunate death of the Life Insured within the Policy Tenure, the corresponding Sum Assured is paid as Death Benefit and the policy terminates.

Benefits

Death Benefit

Since this is a pure term plan, the corresponding Sum Assured is paid to the nominee as Death Benefit if the life insured dies during the policy tenure and the policy terminates.

Maturity Benefit

There are no maturity benefits under this plan.

Income Tax Benefit

Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C and the premium amount for ASA rider is allowed as a deduction from the taxable income each year under section 80D subject to fulfilment of terms and conditions. The Death Benefit is tax free under section 10(10)D subject to fulfilment of terms and conditions.

Riders

There is 1 additional rider available in this plan

Accelerated Sum Assured Benefit- which pays the Sum Assured on diagnosis of any of the 6 Critical Illnesses.

How it works

In this plan, premium can be paid under Regular Premium Option where it is to be paid for 2/3rd of the Policy Tenure or in a Lump sum under Single Pay Option. The Sum Assured is chosen as the total outstanding Loan Coverage which keeps decreasing every year as a percentage as per the policy schedule.

Being a pure Term Plan, there is no Maturity Benefit in this plan. However, in case of unfortunate death of the Life Insured within the Policy Tenure, the corresponding Sum Assured is paid as Death Benefit and the policy terminates.

There is also an additional rider in this plan of Accelerated Sum Assured Benefit where the Sum Assured is paid on diagnosis of any of the 6 Critical Illnesses. This policy can also be opted for Joint Life.

Sample illustration of premium amount in HDFC Loan Cover Term Assurance Plan

The below illustration is for a healthy Male (non-tobacco user) opting for a

Sum Assured = Rs. 15 lakhs

Policy Term = 15 years
Premium Paying Term = 10 years (2/3^rd of the Policy Tenure)

HDFC Life Loan Cover Term Assurance Plan Sample Premiums

Eligibility

	Minimum	Maximum
Policy Term (in years)	10 for Regular 5 for Single	30 for Regular 15 for Single
Premium Payment Term (in years)	Single	2/3^rd of the Policy Tenure
Entry Age of Policyholder	18	55 for Regular 60 for Single
Age at Maturity	-	65
Payment modes	Yearly, Half-yearly, Quarterly and Single