HDFC Home Loan Protection Plan

Type of policy: Term insurance

 

HDFC Home Loan Protection Plan takes care of home loan liability in the event of untimely death of the insured. Home loan EMIs make a sizeable chunk of monthly expenses for those who have them.

Premium can be paid at a single go or can be clubbed with the loan EMIs. In case of death during contract term, a decreasing sum assured is paid to pay off the outstanding loan, directly to your lender. The sum assured decreases with time to match with the loan amount outstanding at a given point in time. The insurance term is equal to the mortgage term.

Existing policy holders may recall that important exclusions are death linked to suicide within one year of issue of policy and death by non-accidental causes during first 90 days of policy. 

Although the idea may sound attractive to some, this is in fact a superfluous policy to have. It does not entirely cover the risk of loss of income rather it only covers the risk of loss of income for paying off loan EMIs. Every earning individual should cover life with an adequate pure term insurance policy that will pay sum assured to the beneficiaries at the event of death. We typically recommend an insurance cover of 4-8 times your annual income, for as long a term as is available for your age. Find out the ideal cover for you using this calculator.

 

Product features:

Parameter

Value

Minimum age at entry

18 years

Maximum age at entry

50 years

Maximum age at expiry

60 years

Minimum single premium payable

Rs 2,000

Maximum sum assured

Rs 30 lakh

 

Returns: No survival benefit available at the end of the term. 

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