HDFC Life Home Loan Protection Plan
HDFC Life Home Loan Protection Plan is an insurance policy which repays the outstanding loan amount in case of the death of the policyholder. This plan has been designed to help the family repay the home loan so that future installments don’t need to be paid. The policy should be purchased at the time of availing the loan.
| Product Type | Loan Protection |
| UIN | 101N013V02 |
Key Features
- Covers the outstanding loan amount at the time of death
- The Cover Amount decreases every year based on the loan schedule
- Premiums paid are eligible for tax exemption, as per existing tax laws
- Single premium payment at the time of loan disbursal
Benefits
This works like a decreasing term insurance plan which is linked to the home loan. In case of death of the policyholder during the loan tenure, the outstanding loan amount will be paid to the loan company and the policy terminates.
There is no maturity benefit in this plan.
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under Section 80C. The Death Benefit is tax free under section 10(10)D subject to fulfillment of terms and conditions. The tax benefits will be as per the income tax laws applicable from time to time.
There are no additional riders available with this plan.
How it works
You have to avail this plan at the time of loan disbursal. The insurance plan is linked to your loan amount. This is a decreasing term insurance plan in which the cover amount will be the same as your outstanding loan amount. In case of death of the policyholder, the insurance policy will pay off the balance loan amount and the policy ceases to exit. The premium has to be paid as single premium at the time of taking the loan. At the discretion of the loan company, the single premium can be added to the loan amount and can be part of the EMI of the loan.
Sample illustration of premium amount in HDFC Home Loan Protection Plan
The below illustration is for a healthy Male (non-tobacco user) opting for:
Sum Assured = Rs. 1 lakh
Single Premium – Rs. 5,000/-
Policy Term = Loan Tenure = 15 years
| Term in Force | Claim Payable (in Rs.) |
| 0 | 1,00,000 |
| 1 | 98,700 |
| 2 | 97,000 |
| 3 | 95,000 |
| 4 | 92,600 |
| 5 | 89,700 |
| 6 | 86,300 |
| 7 | 82,100 |
| 8 | 77,100 |
| 9 | 71,200 |
| 10 | 64,000 |
| 11 | 55,400 |
| 12 | 45,100 |
| 13 | 32,700 |
| 14 | 17,900 |
Eligibility
|
|
Minimum
|
Maximum
|
|
Sum Assured (in Rs)
|
30,00,000
|
No Limit
|
|
Policy Term (in years)
|
Equal to Home Loan Tenure
|
|
|
Premium Payment Term (in years)
|
Single
|
|
|
Entry Age
|
18
|
50
|
|
Age at Maturity (in years)
|
NA |
60
|
|
Single Premium (in Rs)
|
2,000
|
No Limit
|
|
Payment modes
|
Only Single
|
|
FAQs
What if I stop paying the premium?This is a single premium plan which is paid at the time of loan disbursal. No further premiums need to be paid. So there is no chance of missing premiums.
What if I surrender the policy?This policy does not have any surrender value.
