IDBI Federal Lifesurance Savings Plans

Updated: 01-09-2023 07:06:00 AM

IDBI Federal, a joint venture between IDBI Bank and Federal Bank, is an insurance service provider known for providing customer-centric insurance solutions to its customers. Their extensive product range covers term plans, unit linked insurance plans (ULIPs), savings plans, child plans, retirement solutions and group insurance plans.

IDBI Federal Life Insurance Savings Plans

The insurance service provider offers a total of 12 options in insurance savings category. All the options are designed to provide the policy owner with the dual benefit of life cover and good returns on investment. One such option is the IDBI Federal Lifesurance Savings Insurance Plan.

This is a fixed-term and non-linked participating insurance plan that offers the customers double benefits of life insurance cover and opportunities to save for long-term. Along with lump sum payout at the end of the policy term, this insurance policy comes with the following features:

• Protect Savings with Assured Additions:This policy provides the policyholder with guaranteed additions that protect their savings. In the initial 5 years of the policy term, the insured get assured additions at the rate of Rs. 50 per Rs. 1,000 of the maturity sum assured. This benefit is only paid when annual premiums are paid.
• Additional Bonuses to Boost Savings: After the completion of 5 years of policy term, the policyholder starts receiving reversionary bonuses at the end of every policy year. Terminal bonus (if any) will also be paid at the end of the policy term or on the policyholder’s death.
• Discounts on Premium: This insurance plan provides attractive rebate on premiums when the policyholder opts for the maturity sum insured of Rs. 10 lakh and above.

Benefits and Eligibility of IDBI Federal Lifesurance Savings Insurance Plan

The insurance plan is designed in a way to provide the policyholder with a number of benefits. The benefits of Lifesurance Savings Insurance Plan are as listed below:

• Maturity Benefit: On the completion of the policy term, the policyholder will get the maturity sum assured amount along with vested reversionary bonuses (if any), vested guaranteed additions and terminal bonus (if any). This benefit is only paid out to the policy owner if they have paid all the outstanding premiums.
• Death Benefit: In case of an unfortunate event like death of the policy owner during the policy term, the beneficiary will get the payouts that include death sum assured, vested guaranteed benefits, vested reversionary bonus, interim bonus and terminal bonus (if any). All the additions and bonuses are usually based on the maturity sum insured amount.The minimum death insured paid is the highest of 105% of all the premiums paid by the insured till their death or 10 times annualized premium or simple the maturity sum insured amount.
• Accidental Death Benefit: Opting for this entitles the nominee for an added payout in case of an unforeseen event such as the accidental death of the policyholder up to the premium paying term. This is equal to the maturity benefit and paid out over and above the death benefit. A limited of Rs. 50 lakh is there for this benefit. However, the benefit is available at the nominal charges.
• Income Tax Benefit: This insurance plan provides tax benefits to the policyholders under sections 10 (10D) and 80C of the Income Tax Act, 1961. The benefit is usually provided on the basis of prevailing tax laws. Whenever there is a change in the law, the benefit may also change.

Product Details and Eligibility Criteria

Listed below are some more product details and eligibility criteria:

Particular	Details
Policy Term	10, 15, 20 and 25 years
Premium Paying Term	5 years (fixed): For policy term 10 years 5 years – equal to policy term: For 15, 20 and 25 years policy term
Premium Payment Frequency	Monthly, Quarterly, Half-Yearly and Yearly
Minimum Premium	Monthly: Rs. 1,000 Quarterly: Rs. 2,500 Half-Yearly: Rs. 5,000 Yearly: Rs. 10,000
Entry Age	18-55 years
Maturity Age	75 years
Sum Assured	As per the policy rules

Calculate IDBI Federal Lifesurance Savings Insurance Plan Premium Online

IDBI Federal Life Insurance provides a handy online tool to compare plans and find the best one. This need analysis tool also provides an estimated value of the premium amount an individual needs to pay towards this insurance plan. Here are the steps to use this online tool:

• Visit the product page and click on ‘Premium Calculator’ option
• A form will appear on your screen. Fill out all the requested details such as name, date of birth (proposer and life insured), maturity sum insured, policy term, premium type, premium payment term and frequency.
• It will automatically calculate the premium on the basis of details provided by you.

Also Read: IDBI Federal Retiresurance Group Insurance Plan

Factors that Determine the Premium Amount

There are a number of determinant factors for this. Some of them are listed below:

• Applicants’ Age
• Gender
• Maturity Sum Insured
• Policy Term
• Premium Type

There are several other factors that may affect the premium amount of this policy. To know how certain factors may change the premium amount, let us understand this with the following example.

Rahul is a 33-year old working professional. He wants to save some amount to secure his future along with assured regular income. He decides to opt for IDBI Federal Lifesurance Savings plan. The maturity sum insured amount is of Rs. 15 lakh. When he chooses the plan for 10 years, his annualized premium (including GST) is Rs.3,46,275. On the other hand, when he increases the policy term from 10 years to 15 years for the same sum insured, the premium amount comes to Rs. 3,05,976 per annum, including all taxes and GST.

You can also compare the premiums and review the plan on the basis of different determinant factors using this online premium calculator available on the product page.

Also Read: IDBI Federal Wealthsurance Future Star Insurance Plan

FAQs

Q1. What is meant by Policy Surrender?

Ans. Policy Surrender is a facility provided by the insurer to the policy owner to cancel their policy after the lock-in period or premium payment term or policy term.

Q2. What are the documents needed for policy surrender?

Ans. The following are the documents required to avail this facility:

• A duly filled and signed Surrender Request Form
• Policy documents or indemnity bond/agreement in lieu of the policy document
• A duly attested copy of bank statement or passbook or canceled cheque by the bank and the policyholder
• Bank statement or passbook is mandatory if the term ‘New Account’ is mentioned on the cheque provided
• For NRI or NRE, bank’s confirmation and copies of their passport are mandatory
• Self-attested copy of PAN Card
• No Objection Certificate (NOC) from the bank (in case the policy is assigned to the bank)

Q3. What is the meaning of Partial Withdrawal?

Ans. Partial withdrawal is an added feature that allows the policyholders to withdraw a certain amount from their policy after the completion of their premium policy term or after the lock-in period (as mentioned in the policy guidelines).

Q4. What if a policyholder misplaced their policy? Can they request for the duplicate policy?

Ans. In case a customer’s policy is destroyed, lost, mutilated or stolen, they can request for duplicate policy issuance. Here duplicate policy means duplicate policy documents.

Also Read: IDBI Federal Term Insurance Plans

Q5. What are the other options available in ‘Savings Plans’ category?

Ans. In addition to and IDBI Federal Lifesurance Savings Insurance plan, the following are the options available in this category:

• IDBI Federal Life Insurance Guaranteed Wealth Plan
• IDBI Federal Life Insurance Dream Builder Plan
• IDBI Federal Life Insurance Wealth Gain Insurance Plan
• IDBI Federal Life Insurance Wealthsurance Growth Insurance Plan SP
• IDBI Federal Life Insurance POS Guaranteed Income Plan
• IDBI Federal Life Insurance Wealthsurance Growth Insurance Plan
• IDBI Federal Life Insurance POS Guaranteed Plan
• IDBI Federal Life Insurance Incomesurance Guaranteed Money Back Insurance Plan
• IDBI Federal Life Insurance Incomesurance Guaranteed Money Back Insurance Plan 6 Pay
• IDBI Federal Life Insurance Incomesurance Guaranteed Money Back Insurance Plan 7 Pay
• IDBI Federal Life Insurance Secured Income Plan

Q6. Is addition or deletion of a rider is permissible in IDBI Federal Life Insurance policies?

Ans. At present, the addition of a rider benefit is not permissible on IDBI Federal Life Insurance policies. However, the request for deletion can be made for only in-force insurance plans. While requesting deletion, do not forget to stamp the date and time on the request form. Without these basic details, the insurer may reject your request form.