What is Homesurance® Protection Plan?
Comprehensive protection for your home loan
The IDBI Federal Homesurance® Protection Plan is a reducing term plan, which provides insurance cover equal to the outstanding balance of your home loan. In the unfortunate event of death of the home loan borrower, the insurance cover enables repayment of the home loan liability.
Protection against loan liability
A home loan is usually a large liability and if the breadwinner who would repay the loan were not to be there, it could become a serious burden to the family. The Homesurance® Protection Plan protects against this liability. The specifics of the plan are as follows:
1. Cover Amount reduces over time
Your outstanding home loan amount normally reduces over time as you repay by way of monthly installments. Accordingly, the cover amount under the Homesurance® Protection Plan also reduces with time to reflect the outstanding loan amount. At the time you take the plan, you will receive a Policy Schedule based on the amount and terms of your loan, which will show you the reducing cover amount over time.
2. Benefit Amount is paid on death
In the event of death of the insured, we will pay either the cover amount as per the Homesurance® Protection Plan Policy Schedule as on the date of death, or the actual outstanding balance in the insured loan account as on the date of death, whichever is higher. Death due to any cause including illness or accident is covered under the plan. Death, whether in India or abroad is also covered under the plan.