Loansurance® Group Insurance Plan (UIN: 135N028V01)
Showing that you care can go a long way in building strong bonds and customer loyalty.
As a lending institution, you have been providing individuals with much-needed funds
to fulfil their dreams and helping them build assets for themselves and their loved-ones.
You have supported them in building homes, provided for their children’s education
and offered other attractive credit options. Now you can go a step further and help
borrowers ensure that their dreams are not disrupted by the vagaries of life. Your
borrowers can now not just live their dreams but secure them too.
IDBI Federal Loansurance® Group Insurance Plan(UIN: 135N028V01), hereafter
referred to as Loansurance®, is a group credit protection plan that helps protect
your borrower’s assets and savings. Through Loansurance® you extend peace of mind
to your clients, ensuring that their debt does not become a burden on their family
in their absence. In return, you are also protected from the risk of non-payment
of the loan due to death of the borrower.
Loansurance® allows you to cover the persons who are directly liable for loan repayment
(and the partners, in case of a partnership) be it a loan taken by individuals or
by business. Thus, even a business entity will be protected against loan default
in case of death of the persons who are responsible for loan repayment. Furthermore,
with this product, you gain competitive edge while attracting new customers and
retaining the existing ones.
Loansurance®, thus, extends benefits to you as well as your valuable customers.
For education loan: 15 years (last birthday)
For other loans: 18 years (last birthday)
65 years (last birthday)
Cover ceasing age
70 years (last birthday)
For reducing cover option: 8 years
For level cover option: 5 years
30 years (including moratorium period, if any)
Rs.10,000 (in respect of each member)
No limit (subject to underwriting)
- Financial protection for borrower’s family against the burden of loan
Loansurance® ensures that the outstanding debt is settled in the unfortunate event
of death of the insured member.
- Affordable premium
Loansurance® is a cost- effective way for protecting your borrower’s loan liability
with its affordable premiums.
- Opt for joint cover and enjoy premium discount for joint life
Two co-borrowers of a loan can insure themselves, provided they have insurable interest
in each other. Upon death of either joint insured members, full benefit amount is
paid and the cover terminates. Additionally the younger life is offered a discount
on the applicable premium.
- Opt for proportionate cover
Up to four co-borrowers of a loan may insure themselves for their respective share
of the loan, provided they have insurable interest in each other.
- Benefit during moratorium period
Covers entire sanctioned loan amount even during moratorium period thereby enabling
the borrower’s nominee to not only repay the loan but also accomplish the goal for
which loan was taken.
- Increased flexibility through Limited and Regular premium payment options
Depending upon the type of cover (Reducing or Level) the borrower gets to choose
from options of various premium payment terms.
- Advantage Women
There will be a premium discount for a female insured member in this plan. Basic
premium payable will be equivalent to the premium for a three-year younger male
For more information on plan benefits, please refer to the product brochure.
Loansurance® provides cover to a person directly liable for loan repayment (and
the partners, in case of a partnership), as per the benefit schedule. There are
two cover options available:
- Reducing cover option:
In this option, in the event of death during the cover term, a death benefit is
paid, which is equal to the reducing amount as per the benefit schedule for the
cover month at the time of the death.
- Level cover option:
This option provides a cover for the sum assured as specified by the insured member
and can be to the extent of the full agreed loan amount plus accrued interest as
chosen by the insured member. This remains unchanged throughout the cover term.
Thus, even if the loan liability declines over time, the plan cover is the sum assured
throughout the cover term.
Insurance is the subject matter of solicitation. For more details on risk factors,
terms and conditions, please read the sales brochure carefully before concluding
a sale. Tax Benefits are as per the Income Tax Act, 1961 and are subject to changes
in the tax laws from time to time. IDBI Federal Loansurance Group Insurance Plan
is a group credit protection plan. Product UIN: 135N028V01. The product is underwritten
by IDBI Federal Life Insurance Company Limited (IRDAI Regn. No 135) having its registered
office at: IDBI Federal Life Insurance Company Limited, 22nd Floor, A Wing, Marathon Futurex, N. M. Joshi Marg, Lower Parel (East), Mumbai 400013, India.
SMS charges as applicable