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IDBI Federal Homesurance Protection

Objective

This policy aims to protect your family from the liability of a home loan in the event of your death.


What does it do?

This home loan assurance plan pays outstanding loan amount to the nominee in case of unfortunate demise of the insured. This is a decreasing sum assured plan where the sum assured decreases as the loan is repaid.
The policy can also cover joint lives. The death benefit in this case becomes payable upon first death of any one of the co-borrowers. The policyholder has an option to add premiums to the loan amount and repay it as a part of EMI. It allows to take a policy term of maximum of 25 years. If borrower wishes to get insured for a period less than the loan tenure, he can opt for a fixed period coverage of 10 years. This feature is available for a loan term of 15 to 25 years. This policy covers increase in EMIs or loan amount due to rising interest rates. However, if the interest rate falls resulting in decrease in outstanding loan amount, the insurance company will pay higher of the outstanding loan as per policy schedule, as the death benefit. If death benefit is more than the  outstanding home loan amount, the excess amount will be paid to nominees.
If home loan term includes construction period as well, the policy in case of any eventuality during that period, pays full sanctioned loan amount which can be used to repay the partly disbursed home loan and the builder. However, construction period coverage is limited to 3 years.
If the borrower prepays the home loan, the policyholder can either surrender the policy and receive surrender value applicable on that date or continue to enjoy the homesurance cover. In case of any unfortunate event, the amount as per policy schedule will be paid to the nominee. However, there is no guaranteed surrender value.The cover continues even if loan is transferred to another home loan company.


Pros

The plan covers full loan amount even if the loan is construction linked and paid in stages.
It covers increasing outstanding home loan due to increase in interest rates.
It provides flexible policy benefit term.
It provides insurance for joint lives.
The policy gives discount on advance payment of premiums (commuted premiums) and premium rates for females.
Premiums qualufy for taxation benefits.


Suited for

This policy is suitable for anyone who has a loan liability overhead or is planning to take a loan in future.


Our View

IDBI Federal's Homesurance Protection plan is an all-inclusive home loan insurance cover with options to alter the plan as per requirements and ease. Anyone with outstanding home loan liability or plans to take a home loan can consider this policy.

Eligibility
Entry Age (years) 
Minimum18
Maximum60
Maximum Maturity Age (years)70
Policy Term (years) 
Minimum5
Maximum25
Sum Assured (Rs) 
Minimum100000
MaximumNo limit
Premium Payment FrequencyYearly
Premium Payment Term3/5/10 installments or repayment as loan EMI. 5 and 10 premium payment term is available if home loan term is 10/ 15 years or more.
Policy CoverCover decreases in line with decrease in outstanding loan amount
Other Features 
Free Look CancellationIn case, you are not satisfied, you may choose to cancel the policy within 15 days of receiving the policy documents. Upon such cancellation, you will be paid back the premiums, minus the cost of stamp duty, medical reports and proportionate premium for the period for which the risk was covered.
Grace PeriodYou are allowed to pay premiums within 30 days from the due date. If a due premium is not received within the grace period of 30 days, your policy will lapse and the life insurance cover will be terminated.
Lapsed Policy ReinstatementYou can reinstate your lapsed policy any time (within 2 years from the due date of the first unpaid premium) by paying all the due premiums with interest and undergoing underwriting requirements, if any.
Tax BenefitsSection 80C, 10(10D) of the Income Tax Act, 1961 would apply.Premium paid is eligible for tax deduction as per current income tax act.
ExclusionsIn case of death by suicide during the first policy year, or within one year from the date of reinstatement, no death benefit is payable.
Surrender ValueNot guaranteed
Customer Service 
AddressIDBI Federal Life Insurance Co Ltd
First Floor, Tradeview,
Oasis Complex, Kamala City,
P. B. Marg, Lower Parel (West),
Mumbai - 400 013, Maharashtra.
Mail To[email protected]
Call On1800 102 5005 for non MTNL subscribers and 1800 22 1120 for MTNL subscribers from 8A.M to 8 P.M
SMSHome' to 5757515
Annual Premium Option for a Male with 10% interest on his home loan and a 3 year premium payment term
Policy Term (in years)Age (in years)
2530354045505560
10956310217126721750326057406306140093614
15129291469219305280574290766290100802NA
20165331991927562411646294496822NANA
252061226294375805647086229NANANA
Figures indicate premiums on a Rs 20 lakh policy and coverage upto entire term for an age over different policy tenures exclusive of service tax. Policy term equals loan term.
Annual Premium Option for a Female with 10% interest on her home loan and a 3 year premium payment term
Policy Term (in years)Age (in years)
2530354045505560
1093469722109101427620275311654807472310
1512434134241613722216330665116378507NA
20154841756322374321954864974884NANA
251873122374300174409566766NANANA
Figures indicate premiums on a Rs 20 lakh policy and coverage upto entire term for an age over different policy tenures exclusive of service tax. Policy term equals loan term.
Annual Premium Option for a Male with 10% interest on his home loan and a 5 year premium payment term
Policy Term (in years)Age (in years)
2530354045505560
105841621376441048615543242453677056428
15778188001152516699255193947460290NA
2098781189716386244223735857604NANA
251228915621222853345751117NANANA
Figures indicate premiums on a Rs 20 lakh policy and coverage upto entire term for an age over different policy tenures exclusive of service tax. Policy term equals loan term.
Annual Premium option for a Female with 10% interest on her home loan and a 5 year premium payment term
Policy Term (in years)Age (in years)
2530354045505560
10572359396625858512132185812871443394
1574878056964313250196593041946824NA
2092901048613328191102885144472NANA
251117213328178162612739553NANANA
Figures indicate premiums on a Rs 20 lakh policy and coverage upto entire term for an age over different policy tenures exclusive of service tax. Policy term equals loan term.