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IDBI Federal Homesurance Plan

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IDBI Federal Homesurance

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?

The sum assured under this policy decreases as the outstanding home loan is repaid.
This policy offers loan protection along with terminal illness benefit, i.e. if the insured person is diagnosed with a terminal illness and not expected to survive more than 6 months, the benefit will be paid equivalent to sum assured available after six months, subject to a maximum of Rs 25 lakh.
The policy will expire at the end of first remaining policy year where the sum assured as per policy schedule is greater than or equal to the terminal illness benefit.
Single premium policyholders are allowed to surrender the policy.
This policy also covers increase in home loan amount due to increase in interest rates. On the contrary if the outstanding loan reduces with falling interest rates, the insurance company will pay the higher of outstanding home loan as per policy schedule to the nominee.
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 and loan term has to be more than 15 years. Policy term will be loan term plus construction term.
It also offers additional riders to widen the coverage. Waiver of premium rider makes sense as all future premiums will be borne by the insurance company in case of total and permanent disability of the life insured. Major diseases benefit becomes must if you have a family history of any of the listed illnesses.

Pros

This decreasing home loan protection cover saves policyholders from paying for the protection that is actually not required.
The plan provides riders for additional protection. Major diseases rider is a comprehensive one covering 17 major diseases.
Single premium policyholders have an option to surrender their policies.
It covers an increase in home loan amount on account of rising interest rates.
Premiusm qualify for taxation benefits.

Suited for

Anyone who is willing to take home loan may go for this plan.

Our View

This is a comprehensive home loan protection plan and suitable for those who want extra protection along with a home loan cover. Terminal illness benefit makes this home loan policy distinct in its category.

 

Eligibility

Entry Age (years)

Minimum

18

Maximum

60

Maximum Maturity Age (years)

70

Policy Term (years)

Minimum

5

Maximum

25

Sum Assured (Rs)

Minimum

100000

Maximum

20000000

Premium Payment Frequency

Single, Yearly, Half-yearly, Quarterly, Monthly

Premium Payment Term

Single, Regular (2/3rd of loan term)

Premium Factor (multiply with annual premium)

Semi Annual: 0.51 ; Quarterly: 0.26; Monthly: 0.09

Policy Cover

Cover decreases in line with decrease in outstanding loan amount

Other Features

Free Look Cancellation

In 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 Period

You 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 Reinstatement

You 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 Benefits

Section 80C, 10(10D) of the Income Tax Act, 1961 would apply. Premium paid is eligible for tax deduction as per current income tax act.

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.

Surrender Value

Allowed under single premium policy. Surrender Value is not guaranteed. Details will be given in policy document.

Customer Service

Address

IDBI Federal Life Insurance Co Ltd
First Floor, Trade view,
Oasis Complex, Kamala City,
P. B. Marg, Lower Parel (West),
Mumbai - 400 013, Maharashtra.

Mail To

support@idbifederal.com

Call On

1800 102 5005 for non MTNL subscribers and 1800 22 1120 for MTNL subscribers

SMS

Home' to 5757515

Additions to the Plan

Available Rider(s)

Accidental Death and Disablement Benefit: covers Death due to an accident, Disablement caused due to an accident.
Accidental Death Benefit: Death due to an accident
Hospital Cash benefit: Admission to hospital for treatment of any injury or illness.
Daily cash allowance for each day of hospitalisation from the third day and onwards. Normal benefit is paid for stay other than ICU.
Recovery allowance in case of hospitalisation for more than 5 days.
Additional allowance if I.C.U treatment is required.
Major Diseases Benefit: It covers 17 critical illnesses namely Heart Attack, Coronary Artery Bypass Surgery, Heart Valve Replacement Surgery, Surgery of disease of the Aorta, Cancer, Stroke, Kidney failure, Major organ transplant, Paralysis, coma, Multiple Sclerosis, Alzheimer's Disease( before age 61), Parkinson's Disease (before age 61). benign Brain Tumour, Major Head Trauma, Major Burns and Primary Pulmonary Arterial Hypertension.
Waiver of Premium: future premiums will be borne by the insurance company in case of total and permanent disability

Rider Conditions

Entry Age (years)

Minimum

18

Maximum

Accidental Death, Accidental Death and Disability Benefit & Waiver of premium Benefit: 60; Hospitalisation Cash Benefit, Major Disease Benefit: 55

Maximum Maturity Age (years)

65

Rider Term (years)

Minimum

5

Maximum

Hospitalisation Cash benefit: 5 years, subject to maximum of base policy term. For others: Base policy term

Sum Assured (Rs)

Minimum

Accidental Death, Accidental Death and Disability Benefit, Major Diseases Benefit: Rs 50000

Maximum

Accidental Death, Accidental Death and Disability Benefit: Rs 50 lakh or Basic Sum Assured whichever is lower. Major Diseases Benefit: Rs 20 lakh or Basic Sum Assured whichever is lower

Rider Premium (Rs)

Rider premiums vary for each policyholder. For instance, if a 30-year old opts for the Accidental Death rider for Rs 5 lakh sum assured over a 10 year tenure with premium payment term of 6 years; the annual rider premium works to Rs 500, Rs 750 in case of Accidental Death and Disablement Benefit, Rs 240 for Hospital Cash Benefit for 500 capsules and Rs 1255 in case of Major Disease Benefit.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

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