Life is marked by uncertainties. However, we cannot let life’s uncertainties stop us from carrying out our responsibilities and looking out for the well-being of our family. Not only do we place importance on fulfilling the wishes of our loved ones but are also responsible to secure their future financially, in case a misfortune were to disrupt the rhythm of life. In order to successfully do that, a long term savings plan is the ideal choice, which will not only yield profitable returns but also protect against unpredictable misfortunes. IDBI Federal Life Insurance Co. Ltd. has introduced the special Lifesurance Savings Plan. This is a fixed-term participating endowment policy which offers dual benefit of not only providing life cover but also help build long-term savings. Additionally, this plan also provides the benefit of Death Cover, which basically provides financial assistance to your family in your absence.
Eligibility for IDBI Federal Lifesurance Savings Insurance Plan
|Minimum age at entry||Applicant must be at least 18 years|
|Maximum age at entry||Applicant must not be more than 65 years|
|Age at Maturity||Applicant must not be above 75 years.|
Key Features of IDBI Federal Lifesurance Savings Insurance Plan
|Plan Type||Fixed-term participating endowment policy|
|Policy Term||The minimum policy term is 10 years. Beyond that, policy can be taken for terms in multiples of 5 years, up to a maximum term of 25 years.|
|Min. Premium Payment Term||
5 years – for policy terms of 15, 20 and 25 years.
6 years- for policy term of 10 years
|Max. Premium Payment Term||The maximum premium payment term will be equal to the maximum term for which the policy has been taken.|
|Premium Payment Frequency||Premium payments can be made on a yearly, half-yearly, quarterly and monthly basis.|
|Maturity Benefits||Once the Lifesurance policy has reached maturity, assuming that all due premiums have been paid, the policyholder will be paid the sum insured + vested guaranteed additions + vested reversionary bonuses and terminal bonus, (if any) as a lump sum amount.|
|Minimum Premium||Minimum premium to be paid differs with the premium payment frequency. Yearly – Rs 20,000; Half-yearly – Rs 10,000; Quarterly – Rs 5,000 and for Monthly – Rs 2,500.|
|Maximum Premium||No maximum limit to premium amount (subject to underwriting regulations)|
|Free look Period||According to IRDA regulations, policyholders will be permitted a free look period of 15 days from the date of the receipt of the policy document. This provision is permitted for cases when the policyholder is not satisfied with the terms of the policy wishes to cancel the same. Cancellation of the policy must be done within this Free Look period. For cancellation, policyholders must send the original policy document, along with a letter requesting for cancellation of the policy with the reason for cancellation.|
30 days – For premium payment of policies with yearly, half-yearly and quarterly mode.
15 days - For premium payment of policies taken on a monthly premium payment mode. The policy coverage and all associated benefits will remain in force during the grace period. The Grace period will come into effect from the date of the first unpaid premium.
|Policy Revival||If your Lifesurance policy has lapsed or acquired paid-up value, you may reinstate the policy, at the discretion of IDBI Federal Life Insurance Co Ltd, within two years after the due date of the first unpaid premium.|
|Nomination||You can nominate a person to receive the benefits of the policy as per the provisions of the Insurance Act, 1938.|
|Policy Loan||Policyholders can You can avail of the loan facility from IDBI Federal after the policy acquires surrender value. The loan amount granted will Other Features be up to 85% of the surrender value subject to terms and conditions specified by IDBI Federal from time to time.|
|Min. Sum Assured||Minimum sum assured to be given will depend on the age of the policyholder, premium payment and term of the policy.|
|Max Sum Assured||There is no cap on the maximum limit of the sum assured amount.|
Benefits of IDBI Federal Lifesurance Savings Insurance Plan
- Choice of Multiple Policy Terms – Policyholders can choose from various policy terms, as per their convenience, at the end of which they will receive maturity benefits. Policies are available for terms ranging from 10, 15, 20 and 25 years.
- Choice of Premium Payment Terms – In addition to the choice of multiple policy terms, the Lifesurance policy also provides you with different options for terms of premium payment. For policies with a term of 15, 20 and 25 years, the minimum premium payment term is 5 years. For a policy with a term of 10 years, the minimum premium payment term is 6 years. The maximum term of premium payment will be equal to the term for which the policy has been taken.
- Surrender Value – Emergencies can happen any time. Though the Lifesurance policy is a long term commitment, the policy also includes provision for surrender before maturity, in the event of an emergency. The Lifesurance policy will accumulate Surrender value only after 3 years from the date on which the policy has begun, provided that all premiums due for those 3 years have been paid. Once the policy has been surrendered, the policy holder will receive the Special Surrender Value and higher of the Guaranteed Surrender Value.
- Tax Benefits – Premiums which you pay towards your Lifesurance policy are eligible for tax benefits under the provisions of Section 80C of the Income Tax Act, 1961.