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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