What is Home Loan Protection Plan - HLPP?


by CIEL

**  Home Loan Protection Plan (HLPP) is an insurance plan which provides a lump sum benefit on the death of the insured. This can be used to repay the outstanding housing loan.

** The cover in an HLPP is usually the same as the home loan taken.The premium for HLPP can be paid as a single premium in advance or on an annual basis.( regular premium)

** Insurance companies also offer an option where the annual premium is clubbed with the home loan EMI paid by the borrower.


** Since the value of the outstanding home loan reduces over time, the premium for HLPP is lower than that of a life cover for a similar amount.

** Like a term plan, HLPP does not offer any maturity or /  survival benefits.

Courtesy:  Centre for Investment Education and Learning (CIEL).Contributions by Gadre and Arti Bhargava.



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