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IDBI Federal Homesurance Protection Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.

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.
 
 

Key Features of IDBI Federal Homesurance Protection Insurance Policy

  • 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 you get from IDBI Federal Homesurance Protection Insurance Plan

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.
 
 
 

Eligibility conditions & other restrictions in IDBI Federal Homesurance Protection Policy

 
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
 
 
 

Sample illustration of premium of IDBI Federal Homesurance Protection 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.

Loan interest is 12%

IDBI Federal Homeinsurance Protection Plan Sample Premiums

 

Additional Features and Benefits of IDBI Federal Homesurance Protection Plan

Riders – There are no additional riders available with this plan
 
 

What happens 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.
 
You want to surrender the policy –Surrender Value is provided on a reducing basis provided all due premiums have been paid till date.
 
You want a loan against your policy – Loan facility is not available with this plan.



 
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