IDBI Federal Termsurance Group Insurance Plan

A good organisation values its employees above all else. That’s why it’s important that you invest in a good life insurance to show them that they are truly valued. As a provider of the family, employees feel the weight of great responsibility and the fear that their family will be unsupported in case of the unfortunate event of their own deaths. Having a lifts some of this fear as it will ensure that his/ her family will continue to live comfortably even if something untoward were to happen.

Getting a group insurance like IDBI Federal Termsurance Group Insurance Plan is a great option as many different kinds of groups are eligible for it. A wide variety of formal and informal groups can be covered in this plan such as the employer-employee groups/ customer-supplier groups/ bank-depositor groups/ professionals/ affinity groups. This Group provides basic life insurance protection to all the members of the plan. The policyholder issues the single policy document for the entire group so that everyone avails the Life Insurance benefits.

Eligibility for Termsurance Group Insurance Plan:

Parameters Minimum Maximum
Sum insured of the member Rs. 5,000 No limit (subject to underwriting)
Entry age of the member (age as per last birthday) 18 years (in case of Employer-Employee Groups & Accidental Death Benefit option) 15 years (in case of Non Employer-Employee Groups) 69 years
Cover ceasing age of the member (age as per last birthday) 16 years (in case of Non Employer-Employee Groups) 19 years (in case of Employer-Employee Groups & Accidental Death Benefit option) 70 years
Accidental death sum insured Rs. 5,000 Rs. 50,00,000
Size of group 50 members No Limit
Terminal illness sum insured   Rs. 50,00,000
Policy term This is a yearly renewable group term assurance plan.

Features of Termsurance Group Insurance Plan:

Advantages to the Employer
  • Your employees will be provided with valuable life insurance cover.
  • Avail tax benefits as the premiums are tax deductible as business expense (according to section 37 of the Income Tax Act, 1961).
  • Simple to set up and administration.
Advantages to the Employee This cover ensures that the employee’s family will be financially supported in the event of the employee’s untimely death. Life cover amount will be paid to the nominee.
  • The nominee will be exempt from income tax when death benefit is paid.
  • No medical examination required (up to a certain coverage limit.)
Premium Payment The group master policyholder is responsible for collecting and remitting all contributions to the insurer. In case the plan is voluntary, members can choose to contribute their own premium according to their preference.
Premium Payment Frequency: At the inception of the policy or policy annual renewal date, the premium for the entire year can be paid in advance. Premium payment frequency can also be half yearly/quarterly or monthly modes. For premium frequencies other than annual, the premium amount can be calculated by multiplying the annual premium with the frequency factor as mentioned below:
Premium frequency Monthly Quarterly Half- yearly
Frequency factor 0.09 0.26 0.51
Loans This plan has no loan facility.
Grace Period The grace period is 30 days (15 days in case of monthly mode).
Surrender and Paid Up Value This plan has no surrender value and no paid up value.
Applicability of Service Tax Service Tax is payable on life insurance premiums as per the applicable tax laws.
Lapse The cover will lapse if the premium is not received within the grace period. If this happens, you will not receive any of the benefits.
Reinstatement The revival period is 3 months from the date on which the cover lapses. This is subject to it being within the policy term of one year.
Nomination Member can all nominate a person/persons to whom the death benefit will be payable.

Benefits of Termsurance Group Insurance Plan:

Maturity Benefit: There are no maturity benefits in this plan.

Death Benefit: The sum assured, as specified in the plan rules by us, will be paid to the beneficiary in the unfortunate event of death of the insured member.

Accidental Death Benefit: Members have the choice of opting for the accidental death benefit option, so that if the member happens to have an accidental death, the beneficiary will receive the accidental death benefit sum insured in addition to the basic death benefit.

Terminal Illness Benefit: At the outset by the master policyholder, the terminal illness benefit option has to be selected. The master policyholder can select the amount of terminal illness benefit. This amount can be less than or equal to the member’s sum insured, subject to a maximum of Rs. 50,00,000 for each member.

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GST of 18% is applicable on life insurance effective from the 1st of July, 2017

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