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HDFC Life Loan Cover Term Assurance Plan
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This plan has been withdrawn by the insurance company and is no longer available for sale.
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.
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.
Key Features of HDFC Loan Cover Term Assurance Plan
It is a pure Decreasing Term Insurance Policy with Death Benefit only
There is an option of single premium payment in this plan
Unique feature of covering joint life
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
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.
COMPARE THIS PLAN WITH OTHER TERM PLANS
Benefits you get from HDFC Loan Cover Term Assurance Plan
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.
Eligibility conditions and other restrictions in HDFC Loan Cover Term Assurance Plan
