IDBI Federal Wealthsurance Maxigain Plan
IDBI Federal Wealthsurance Maxigain Plan
IDBI Federal Wealthsurance Maxigain Plan is a Unit Linked Insurance Plan. Thus, it is a Non-Traditional Insurance Plan without Bonus facility.
How it works – In this plan, premium needs to be paid for a period of 5 years whereas the policy continues fot a period of 10 years.
In this plan, there is a choice of opting for MaxiNAV Guaranteed Fund. Under this fund, the highest of the following would be provided:
- Highest NAV achieved on the reset dates during the 7-year tracking period
- Subject to a minimum guaranteed NAV of Rs. 10 or
- The NAV on the specified policy maturity date
However, one may choose not to opt for the MaxiNAV Guaranteed Fund in this plan. There are other investment options as well of Dynamic Guaranteed Options with Returns Linked to the Market Performance but with Capital Protection for moderate risk takers and Market Fund Options with Variable Returns Linked to Market Performance for risk lovers.
On survival till policy maturity, the Fund Value is paid to the policyholder as Maturity Benefit as per the fund option selected and the policy terminates. However, if the Life Insured dies within the Policy Tenure, the higher of the Sum Assured or the Fund Value is paid to the nominee as Death Benefit and the policy terminates.
Key Features
- Highest NAV achieved on the reset dates during the 7-year tracking period
- Subject to a minimum guaranteed NAV of Rs. 10 or
- The NAV on the specified policy maturity date
Benefits
In case of death of the Life Insured within the Policy Tenure, the nominee gets the higher of the Sum Assured or the Fund Value is paid to the nominee as Death Benefit, subject to a minimum of 105% of total premiums paid till date and the policy terminates.
When the policy matures, the Fund Value is paid to the policyholder as Maturity Benefit and the policy terminates.
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions
- Fixed Returns Option: There is 1 Fund available under this option
- MaxiNAV Guaranteed Fund, which guarantees a minimum Net Asset Value of each unit on the maturity date of the policy. Returns are, however, not guaranteed and depend upon the performance of the equity portfolio of the fund and the stock market.
- Dynamic Guaranteed Options: There is 1 fund available under this option
- Dynamic Guaranteed Fund, which provide minimum guarantee of the highest Net Asset Value (NAV) per unit achieved during the subscription period
- Market Fund Options: There are 2 Funds available under this option
- Equity Growth Fund
- Income Fund
Premium is not allowed in the last 5 policy years and each top up has a lock in of 5 years. The minimum amount of Top Up is Rs 5000 and there is no limit for maximum amount. The Sum Assured increases automatically with each Top Up Premium by 125% of Top Up Premium if age is less than 45 years and by 110% of Top Up Premium if age is 45 years or more.
In this policy, there are Partial Withdrawal Benefits after completion of 5 policy years or till the Life Insured is 18 years old, whichever is later. The minimum amount of Partial Withdrawal allowed is Rs 10,000. The balance Fund Value left after withdrawal should be at two annual premiums. There is no charge for Partial Withdrawal now.
Variants
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Policy Year
|
Premium Allocation Charge
|
|
Year 1
|
3.15% of Annualized Premium
|
|
Year 2 onwards
|
NIL
|
|
Top-Up Premium
|
3.15% of Top Up Premium
|
|
Policy Year
|
Policy Administration Charge
|
|
Year 1 to Year 5
|
6.30% of Annualized premium
|
|
Year 6 onwards
|
3.15% of Annualized Premium
|
|
As and When: Top Up Premium
|
NIL
|
|
Type
|
Charge
|
|
MaxiNAV Guarantee Fund
|
1.35% p.a. + an Investment Guarantee Charge of 0.60% p.a.
|
|
Dynamic Guaranteed Fund
|
1.35% p.a. + an Investment Guarantee Charge of 0.60% p.a.
|
|
Equity Growth Fund
|
1.35%
|
|
Income Fund
|
1.35%
|
|
Year of Discontinuation
|
Annual Premium > Rs 25,000 p.a.
|
|
1st
|
Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
|
|
2nd
|
Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
|
|
3rd
|
Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
|
|
4th
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Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
|
|
5th onwards
|
NIL
|
Eligibility
|
|
Minimum
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Maximum
|
|
Sum Assured (in Rs.)
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For age<45 years, SA=10 X Annual Premium
For age>=45 years, SA=7 X Annual Premium
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No Limit
|
|
Policy Term (in years)
|
10
|
|
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Premium Payment Term (in years)
|
5
|
|
|
Entry Age of Life Insured (in years)
|
8
|
65
|
|
Age at Maturity (in years)
|
-
|
75
|
|
Annual Premium (in Rs.)
|
25,000
|
1,00,000
|
|
Payment modes
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Only Annual
|
|
FAQs
What happen if you stop paying the premium before 5 years ?What happen if you stop paying the premium after 5 years ?If the policy holder stops paying the premium after 5 years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
What happen if you want to surrender the policy ?What happen if you want a loan against your policy ?There is no loan available under this plan.
