Advantage Homesurance® Plan
Maximum protection at minimum cost
A. Flexible Premium Paying Options
IDBI Federal Homesurance® Plan (Homesurance®) offers flexible premium paying options for your convenience. You can choose to pay your premium by:
- Single premium
- Regular premiums : The regular premium option has a limited term which is 2/3rd of your loan term, rounded off to the lowest integer. This facility allows you to pay off your premiums earlier so that you may get over your liability of paying premiums faster. The regular premium can be paid in monthly, quarterly, half yearly and yearly modes. The premium for frequencies other than the annual mode is the annual premium multiplied with the frequency factor. Frequency factor is 0.51 for semi annual, 0.26 for quarterly mode & 0.09 for the monthly mode.
B. Small Cost, Big Protection
The Homesurance® plan is a mortgage reducing term assurance plan. Hence it covers your entire home loan for a small cost. Please note the sample illustration below.
|
| Policy Term |
15 years |
20 years |
25 years |
| Single Premium |
Rs 17,797 |
Rs 24,434 |
Rs 32,801 |
| Regular Premium |
Rs 2,295 |
Rs 2,564 |
Rs 3,033 |
|
C. Shield your family from interest rate fluctuations
In a scenario where the interest rates increase, the Homesurance® plan will ensure that your home loan cover will not fall short of the actual home loan payment. The Homesurance® plan will cover whatever is your outstanding home loan amount even if it has increased due to a rise in interest rates.
On the other hand, if the interest rates decrease, your outstanding loan amount will also decrease. In this scenario the Homesurance® plan pays your family a death benefit which is the higher of the outstanding loan amount or the amount as per the policy schedule.
To understand how the Homesurance® plan works in the scenario of an increase or decrease in interest rates, please refer to the exhibit below:
D. Tax Benefits
Your Homesurance® plan is eligible for various tax benefits:
- Premiums that you pay towards your Homesurance® policy are eligible for tax deductions Under Sec 80C up to Rs. 1,00,000
- Death benefits and claims are Tax free Under Sec 10 (10D) of the Income Tax Act 1961
Homesurance® Plan at a Glance
To understand how the Homesurance® plan works in the scenario of an increase or decrease in interest rates, please refer to the exhibit below:
