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Loansurance® Group Insurance Plan
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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.

Parameters Minimum Maximum
Group size 50 lives No limit
Entry age For education loan: 15 years (last birthday)
For other loans: 18 years (last birthday)
65 years (last birthday)
Cover ceasing age Not applicable 70 years (last birthday)
Cover term For reducing cover option: 8 years
For level cover option: 5 years
30 years (including moratorium period, if any)
Sum assured Rs.10,000 (in respect of each member) No limit (subject to underwriting)
  • Financial protection for borrower’s family against the burden of loan liability
  • 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 insured member.

    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

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