IDBI Federal Homesurance Plan
IDBI Federal Homesurance Plan
IDBI Federal Homesurance Plan is a Decreasing Term Plan for Home Loans. It can be taken to cover your home loan amount as the cover decreases over a period of time.
How it works – In this plan, premium can be paid in a lumpsum under Single Payment Option or maximum till 2/3rd of the Loan Tenure under Regular Payment Option.
Being a pure protection plan, there is no maturity benefit under this plan. However, if the Life Insured dies within the Policy Tenure, an equal amount of the Home Loan Liability as per the home loan schedule would be paid to the nominee to pay off the outstanding home loan liability. This policy pays for the outstanding loan amount even if the same is higher than the one mentioned in the policy schedule due to interest rates fluctuations.
This plan has an inbuilt feature of Terminal Illness coverage. On diagnosis on any terminal illness of the Life Insured, the death benefit is paid ahead of time so as to help in home loan liability settlement.
There are 5 additional riders available in this plan as well.
Key Features
- Single Payment Option
- Regular payment Option, where the premium paying term is till 2/3rd of the Loan Tenure
Benefits
In case of death of the Life Insured within the Policy Tenure, the nominee gets an amount equal to the Home Loan Outstanding Liability as per the home loan schedule.
Being a pure protection plan, there is no Maturity Benefit in this plan.
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 Death Benefit are tax free under section 10(10)D subject to fulfilment of terms and conditions.
Eligibility
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Minimum
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Maximum
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Sum Assured (in Rs.)
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1,00,000
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2,00,00,000
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Policy Term (in years)
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5
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2/3rd of Loan Tenure
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Premium Payment Term (in years)
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Single under Single Payment
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2/3rd of Loan Tenure under Regular payment
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Entry Age of Life Insured (in years)
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18
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60
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Age at Maturity (in years)
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-
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70
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Payment modes
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Single, Annual, Semi-Annual, Quarterly and Monthly
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FAQs
What happen if you stop paying the premium ?If the policy holder stops paying the premium, under Regular Scheme, the policy lapses and all benefits cease. The policy can however be reinstated within a period of 2 years from the due date of the first unpaid premium.
What happen if you want to surrender the policy ?There are no Surrender Benefits in this plan under Regular Payment Option. However, under Single Payment Option, Surrender Value is provided on a reducing basis as a percentage of initial Single Premium.
What happen if you want a loan against your policy ?Loan facility is not available with this plan.
