Loan Protect Plan

• Life Cover : Choose between Fixed and Reducing Cover as per your need:
  • Fixed Cover: Sum Assured chosen at inception of the policy will be paid, in case of death during the policy term
  • Reducing Cover: At inception of the policy, the death benefit will be equal to Sum Assured. Death benefit will reduce monthly starting from the beginning of the second policy month. In case of death during the policy term, death benefit applicable at the time of death will be paid.
• Policy term: You can choose a policy term that is lesser than or equal to the loan tenure.
• Flexible Premium Payment Term: Pay premium only once or for a limited period of 5 years.
• Multiple applicants can be covered under the same loan.
• Tax benefit: Get tax benefits on the premiums paid and benefits received under the policy, as per the prevailing Income Tax laws¹.



¹ Tax benefits under the policy will be as per the prevailing Income Tax laws. Service tax and cesses will be charged extra, as per the applicable rates. The tax laws are subject to amendments from time to time.

• Choose your policy term: You can choose a policy term that is lesser than or equal to the loan tenure, from the below mentioned options

If the loan tenure is less than 5 years, then you can choose a policy term of 5 years.
If the policy term selected is less than the loan tenure, life cover will only be provided till the end of the policy term and not till the end of the loan tenure.
Example 1: for a 30 year old healthy male with Sum Assured equal to Rs. 30 lakh, and outstanding loan tenure of 10 years, the death benefit (in Rs. Lacs) each year, for a Reducing Cover option is:

Example 2: for a 30 year old healthy male with Sum Assured equal to Rs. 30 lakh, and outstanding loan tenure of 10 years, the death benefit (in Rs. Lacs) each year, for a Fixed Cover option is:

• Choose premium payment term: You can choose to pay premium just once or for a limited period of five years.

• Choose Sum Assured: You can choose a Sum Assured that is equal to or lower than the total outstanding loan amount.

• Choose death benefit option: You can also choose from the following death benefit options, as per your need:
  • Fixed Cover: Death benefit is equal to Sum Assured, as chosen by you, for the entire policy term.
  • Reducing Cover: At inception of the policy, the death benefit will be equal to Sum Assured. Death benefit will reduce monthly starting from the beginning of the second policy month. Irrespective of the outstanding loan tenure at the time the proposal is received, the reduction schedule will depend on the policy term. In case of death during the policy term, death benefit applicable at the time of death will be paid



The death benefit will be as described above, irrespective of the loan re-payments actually made and irrespective of the outstanding loan amount at the time of death.




Please refer to the customized Benefit Illustration to get details of year wise death benefit values.

• Pay premiums for the chosen premium payment term and enjoy the policy benefits for the entire policy term, as described in the following section.