IDBI Fortis Life Insurance has launched a mortgage-reducing term insurance plan called Homesurance Protection Plan to secure the policy-holder from interest rate fluctuations.

CEO and MD of IDBI Fortis Life Insurance said: "For many in India, owning a home is a long-cherished dream and a lot of hard work and careful planning goes into buying a house with a home finance. A home is the best gift a customer gives to his family and in the event of an unfortunate event, if he were not around, his family would have to bear the burden of the home loan. But, here, the powerful Homesurance Protection Plan ensures that our customer's family will inherit a home and not certainly the home loan burden."

The plan that was announced on Monday, February 9th provides cover for properties that are even under construction and ensures that the recipient gets the full sanctioned amount. This facilitates the policy holder to directly pay the up front to the builder rather than waiting for a home loan.

Moreover the Homesurance Protection Plan also offers joint life insurance cover wherein the lives of the co-borrowers can be covered jointly. It comes out to be cheaper than individual covers separately. In case of a sudden demise of either of the co-borrowers, the loan liability is taken care of by the insurer. This reduces the survivor's burden of entire loan amount.

The plan also offers savings on premiums. The premiums paid under the plan are eligible for deduction under Section 80 C of the Income Tax Act. Besides, the benefit amount accrued to the beneficiary on the death of the policy holder is also exempted from tax under Section 10 D of the Income Tax Act.

IDBI that started its operations in March 2008 is a joint venture of IDBI Bank, Federal Bank and Fortis Insurance International.