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HDFC Loan Cover Term Assurance Plan

Objective

This policy aims to relieve family members from the liability of an outstanding loan, in case of unfortunate death of the insured member.

Our View

This is a useful policy to protect your family from the burden of repaying a loan. It ensures that they continue living in self-owned house in your absence.
Critical Illness rider makes more sense with a basic health insurance policy. This rider in the policy cannot replace a basic health plan, but bought as an add on to supplement the loan liability.

Suited for

This policy is suitable if you have any outstanding loan or plan to take a loan in future.

What does it do?

This plan addresses the concern of home loan repayment in case of unfortunate demise of the breadwinner of the family. Here, the sum assured decreases as the loan is repaid. The policy doesn’t pay any maturity benefit on survival. This plan can be taken either on single-life or joint-life basis. It also offers an optional accelerated sum assured (ASA) benefit that covers 6 critical illnesses for a sum equal to the basic sum insured under the policy. Once this claim is settled, the basic policy cover also ends.

Pros

Decrease in sum assured with decrease in loan liability reduces premium towards the policy, thus saving policyholder from paying for insurance cover that is not required.

Women enjoy lower premium rates.

Premiums paid qualify for taxation benefits.

Cons

Accelerated sum assured benefit covers only 6 critical illnesses.

Eligibility

Entry Age (years)

Minimum
18
Maximum
55
Maximum Maturity Age (years)
65

Policy Term (years)

Minimum
10 for Regular Premium policies; 5 for Single Premium Policies
Maximum
30 for Regular Premium Policies; 15 for Single Premium policies

Sum Assured (Rs)

Minimum
800000
Maximum
No Limit
Premium Payment Frequency
Single, Yearly, Half-yearly and Quarterly
Premium Payment Term
Regular and Single (Regular is 2/3rds of policy term)
Policy Cover
Cover remains fixed for the tenure of the policy

Other Features

Grace Period
You are allowed to pay premiums within 15 days from the due date. If a due premium is not received within the grace period of 15 days, your policy will lapse and the life insurance cover, including the rider cover, if any, will be terminated.
Tax Benefits
Section 80C, 10 (10D) of the Income Tax Act, 1961 would apply. Premiums paid for Accelerated Sum Assured may qualify for deduction under Section 80D of the Income Tax Act, 1961.
Exclusions
In case of death by suicide during the first policy year, or within one year from the date of reinstatement, no death benefit is payable. Further, if the Life Assured under the policy, whether medically sane or insane, commits suicide, within one year of exercising the option to increase the Sum Assured, then the amount of increased Sum Assured will not be considered in the calculation of the Death Benefit

Customer Service

Address
HDFC Standard Life Insurance COmpany Limited, 13th Floor, Lodha Excelus, Apollo Mills Compound, N M Joshi Road, Mahalaxmi, Mumbai - 400011
Mail To
[email protected]
Call On
1800 227 227
SMS
LIFE@5676727
Available Rider(s)
Accelerated Sum Assured: On diagnosis of any of the 6 critical illnesses; the rider sum assured is paid but the base policy terminates after settlement of this claim.

Rider Conditions

Entry Age (years)

Minimum
18
Maximum
55 in case of regular premium; 60 in case of Single premium
Maximum Maturity Age (years)
65

Rider Term (years)

Minimum
10 for Regular Premium policies; 5 for Single Premium policies
Maximum
30 for Regular Premium policies; 15 for Single Premium policies

Sum Assured (Rs)

Minimum
Equal to Sum Assured
Maximum
Equal to Sum Assured

Cost Details

Annual Premium Option for Male
Policy Term (in years)Age (in years)
25303540455055
1071808240918011220150402174031680
15742084809420115001580023000NA
207660872096601286018360NANA
25790089601076014800NANANA
308140920011840NANANANA
Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures exclusive of service tax
Annual Premium Option for Female
Policy Term (in years)Age (in years)
25303540455055
107040736085009840124601738025240
15728078008740100801290018320NA
207520804089801068014720NANA
2577608280924012140NANANA
308000852010000NANANANA
Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures exclusive of service tax
Single Premium Option for Male
Policy Term (in years)Age (in years)
2530354045505560
51752019260200602586030400450206060088020
10276803132034420469405906089260121640NA
153738043960505807252093500141360NANA
Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures exclusive of service tax
Single Premium Option for Female
Policy Term (in years)Age (in years)
2530354045505560
51690018400196402260027580361005102069520
10266802920032620395805164071080101200NA
153570039940466205938081040112480NANA
Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures exclusive of service tax