IDBI Federal Homesurance Protection Plan

IDBI Federal Homesurance Protection Plan is a Decreasing Term Plan for Home Loans. It is a Traditional Plan without Bonus facility.

How it works – In this plan, premium can be paid in 3, 5 or 10 years in annual mode. The 3 pay tenure can be treated as Single Premium by paying the next 2 premiums in advance at a discounted rate.

Being a pure protection plan, there is no maturity benefit under this plan. However, if the Life Insured dies within the Policy Tenure, an amount equal to the Home Loan Outstanding Liability as per the home loan schedule or the actual loan outstanding. This is paid as Death Benefit so as to clear off the loan liability. Thus, 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.

In case of Joint Applicants, Death Benefit is paid upon death of any of the applicants and the policy terminates.

Maturity Benefit

pre-and-post-hospitalisation-overview icon

Home loan

3 pay tenure

Compare this plan with other Term Plans

Key Features

It is a Decreasing Term Plan without bonus where the outstanding coverage reduces with time

There are 3 Limited Payment options in this plan- 3 years, 5 years and 10 years

The 3 pay tenure can be treated as Single Premium by paying the next 2 premiums in advance at a discounted rate

This plan provides coverage for joint applicants of the home loan

There can be a limited coverage for 10 years only as well and not the entire loan tenure

There is no Maturity Benefit in this plan

This policy provides coverage of the construction period for a maximum of 3 years for the entire sanction amount and not the amount of loan disbursed only

The policy provides coverage irrespective of home loan interest rates fluctuations in fixed as well as floating rates

Benefits

Death Benefit

In case of death of the Life Insured within the Policy Tenure, the nominee gets the higher of an amount equal to the Home Loan Outstanding Liability as per the home loan schedule or the actual loan outstanding. This is paid as Death Benefit so as to clear off the loan liability.

In case of Joint Applicants, Death Benefit is paid upon death of any of the applicants and the policy terminates.

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.

Riders

There are no additional riders available with this plan

Eligibility

	Minimum	Maximum
Sum Assured (in Rs.)	1,00,000	No LImit
Policy Term (in years)	5	25
Premium Payment Term (in years)	3, 5	10
Entry Age of Life Insured (in years)	18	60
Age at Maturity (in years)	-	70
Payment modes	Only Annual

FAQs

What happen if you stop paying the premium ?

If the policy holder stops paying the premium, 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 ?

Surrender Value is provided on a reducing basis provided all due premiums have been paid till date.

What happen if you want a loan against your policy ?

Loan facility is not available with this plan.