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IDBI Federal Home Loan Insurance – How to get IDBI Insurance

In this article, we will discuss in full detail all you need to know about Idbi Federal home loan insurance.

idbi federal home loan insurance

IDBI loan

IDBI Federal Home Loan Insurance

IDBI Federal Homesurance Protection Plan (IDBI Federal Homesurance Protection Plan)
The IDBI Federal Homesurance Protection Plan is a Home Loan Decreasing Term Plan. It is a traditional plan that does not include a bonus feature.

How it works – This plan allows you to pay your premiums in annual installments over three, five, or ten years. By paying the next two premiums in advance at a discounted rate, the three-pay tenure can be viewed as a single premium.

IDBI Federal Home Loan Insurance, There is no maturity benefit because this is a pure protection plan. If the Life Insured dies within the Policy Tenure, an amount equal to the Home Loan Outstanding Liability as determined by the home loan schedule or the actual loan outstanding will be paid out. This is paid as a Death Benefit in order to pay off the loan. As a result, due to interest rate variations, this policy pays for the outstanding loan amount, even if it is larger than the amount stated in the policy schedule. Buy insurance online

When one of the joint applicants dies, the Death Benefit is paid and the insurance is terminated.

IDBI Federal Home Loan Insurance Policy Highlights

It’s a no-bonus Decreasing Term Plan in which the outstanding coverage decreases with time.
This plan has three limited payment options: three years, five years, and ten years.
By paying the next two premiums in advance at a discounted rate, the three-pay tenure can be viewed as a single premium.
This plan provides coverage for home loan co-applicant.
There may be limited coverage for a period of ten years only, rather than the entire loan term.
This plan does not provide a Maturity Benefit.
This policy covers the whole sanction amount, not only the loan amount disbursed, for a maximum of three years during the construction period.
The policy provides coverage regardless of changes in house loan interest rates, both fixed and floating rates.

IDBI Federal Home Loan Insurance Plan provides you with a number of advantages.

IDBI Federal Home Loan Insurance, The nominee receives the higher amount equal to the Home Loan Outstanding Liability as per the home loan schedule or the actual loan outstanding if the Life Insured dies during the Policy Tenure. This is paid as a Death Benefit in order to pay off the loan. Checkout  insurance plans

When one of the joint applicants dies, the Death Benefit is paid and the insurance is terminated.

Maturity Benefit – This plan does not have a Maturity Benefit because it is purely a protection plan.

Income Tax Benefit – Under Section 80C, life insurance premiums up to Rs. 1,00,000 can be deducted from taxable income each year, and death benefits are tax-free under section 10(10)D if certain conditions are met.

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IDBI Federal Home Loan Insurance Protection Policy eligibility requirements and other restrictions

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

A premium image for the IDBI Federal Home Loan Insurance plan.

The illustration below is for a 30-year-old healthy individual who chooses a Home Loan coverage of Rs 10 lakhs for periods of 15, 20, and 25 years.
The interest rate on a loan is 12%.

 

IDB

IDBI loan

IDBI Federal Homesurance Protection Plan Extra Features and Benefits

Those that ride – This plan does not include any additional riders.

What if something goes wrong?

You stop paying your premiums – in IDBI Federal Home Loan Insurance, If you stop paying your premiums, your coverage will lapse and all benefits will end. However, the insurance can be reinstated within two years following the first unpaid premium’s due date.

You want to surrender the coverage — If all due premiums have been paid to date, the surrender value will be reduced.

You want to borrow money against your policy – This plan does not include a lending option.

IDBI Federal Home Loan Insurance(IDBI Federal Homesurance Protection Plan)

The IDBI Federal Homesurance Protection Plan is a Home Loan Decreasing Term Plan. It is a traditional plan that does not include a bonus feature.

How it works – This plan allows you to pay your premiums in annual installments over three, five, or ten years. By paying the next two premiums in advance at a discounted rate, the three-pay tenure can be viewed as a single premium.

There is no maturity benefit because this is a pure protection plan. If the Life Insured dies within the Policy Tenure, an amount equal to the Home Loan Outstanding Liability as determined by the home loan schedule or the actual loan owing will be paid out. This is paid as a Death Benefit in order to pay off the loan. As a result, due to interest rate variations, this policy pays for the outstanding loan amount, even if it is larger than the amount stated in the policy schedule. checkout also for IDBI Federal Termsurance Level Cover

When one of the joint applicants dies, the Death Benefit is paid and the insurance is terminated.

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IDBI Federal Home Loan Insurance Policy Highlights

IDBI Federal Home Loan Insurance, It’s a no-bonus Decreasing Term Plan in which the outstanding coverage decreases with time.
This plan has three limited payment options: three years, five years, and ten years.
By paying the next two premiums in advance at a discounted rate, the three-pay tenure can be viewed as a single premium.
This plan provides coverage for home loan co-applicant.
There may be limited coverage for a period of ten years only, rather than the entire loan term.
This plan does not provide a Maturity Benefit.
This policy covers the whole sanction amount, not only the loan amount disbursed, for a maximum of three years during the construction period.
The policy provides coverage regardless of changes in house loan interest rates, both fixed and floating rates. Check IDBI federal home loan insurance eligibility

IDBI Federal Home Loan Insurance Plan provides you with a number of advantages.

IDBI Federal Home Loan Insurance, The nominee receives the higher amount equal to the Home Loan Outstanding Liability as per the home loan schedule or the actual loan outstanding if the Life Insured dies during the Policy Tenure. This is paid as a Death Benefit in order to pay off the loan.
When one of the joint applicants dies, the Death Benefit is paid and the insurance is terminated.

Maturity Benefit – This plan does not have a Maturity Benefit because it is purely a protection plan.

Income Tax Benefit – Under Section 80C, life insurance premiums up to Rs. 1,00,000 can be deducted from taxable income each year, and death benefits are tax-free under section 10(10)D if certain conditions are met. You  can as well ask an expert

IDBI Federal Home Loan Insurance Policy eligibility requirements and other restrictions

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

A premium image for the IDBI Federal Homesurance Protection Plan.

The illustration below is for a 30-year-old healthy individual who chooses a Home Loan coverage of Rs 10 lakhs for periods of 15, 20, and 25 years.
The interest rate on a loan is 12%.  Check out sample documents 

IDB

IDBI loan

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IDBI Federal Homesurance Protection Plan Extra Features and Benefits
Those that ride – This plan does not include any additional riders.

What if something goes wrong?

You stop paying your premiums – If you stop paying your premiums, your coverage will lapse and all benefits will end. However, the insurance can be reinstated within two years following the first unpaid premium’s due date.

You want to surrender the coverage — If all due premiums have been paid to date, the surrender value will be reduced.

You want to borrow money against your policy – This plan does not include a lending option.  To  know more about IDBI federal home loan insurance CLICK HERE

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