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.
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
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Minimum
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Maximum
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Policy Term (in years)
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10 for Regular
5 for Single
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30 for Regular
15 for Single
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Premium Payment Term (in years)
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Single
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2/3rd of the Policy Tenure
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Entry Age of Policyholder
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18
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55 for Regular
60 for Single
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Age at Maturity
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-
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65
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Payment modes
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Yearly, Half-yearly, Quarterly and Single
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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 (2/3rd of the Policy Tenure)
Additional Features and Benefits of HDFC Loan Cover Term Assurance Plan
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.
You stop paying the premium – the policy would lapse and all benefits would stop once the premium is not paid.
You want to surrender the policy – There are no surrender benefits under this term plan.
You want a loan against your policy – Loan facility is not available under this policy.
