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IDBI Federal Homesurance Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.

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 of IDBI Federal Homesurance Policy

    • It is a Decreasing Term Plan without bonus
    • There are 2 payment options in this plan
      • Single Payment Option
      • Regular payment Option, where the premium paying term is till 2/3rd of the Loan Tenure
    • There is no Maturity Benefit in this plan
    • This plan has an inbuilt feature of Terminal Illness coverage
    • There are 5 additional riders available in this plan
    • This policy provides coverage of the construction period as well for 3 years over and above the loan tenure
    • The policy provides coverage irrespective of home loan interest rates fluctuations in fixed as well as floating rates

    Benefits you get from IDBI Federal Homesurance Policy

    Death Benefit – 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.
    Maturity Benefit – Being a pure protection plan, there is no Maturity Benefit in 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 Death Benefit are tax free under section 10(10)D subject to fulfilment of terms and conditions.

    Eligibility conditions & other restrictions in IDBI Federal Homesurance Policy

    Sum Assured (in Rs.)
    Policy Term (in years)
    2/3rd of Loan Tenure
    Premium Payment Term (in years)
    Single under Single Payment
    2/3rd of Loan Tenure under Regular payment
    Entry Age of Life Insured (in years)
    Age at Maturity (in years)
    Payment modes
    Single, Annual, Semi-Annual, Quarterly and Monthly

    Sample illustration of premium of IDBI Federal Homesurance Plan

    The below illustration is for a healthy male of 30 years opting for a Home Loan coverage of Rs 10 lakhs for period 15, 20 and 25 years

    IDBI Federal Homesurance Plan Sample Premiums


    Additional Features and Benefits of IDBI Federal Homesurance Plan

    Riders – There are 5 additional riders available with this plan
    Accidental Death and Disablement Benefit
    Accidental Death Benefit
    Hospital Cash Benefit- Daily Cash Allowance, Recovery Allowance, Additional Allowance if ICU treatment is required
    Major Disease Benefit-covers 17 major diseases
    Waiver of Premium Benefit on Total and Permanent Disablement

    What happens 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.
    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.
    You want a loan against your policy – Loan facility is not available with this plan.

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