IDBI Federal Bondsurance Advantage Plan
IDBI Federal Bondsurance Advantage Plan
IDBI Federal Bondsurance Advantage Plan is a Single Premium non-participating Endowment Plan. It is a Traditional Plan without Bonus facility.
How it works – In this plan, premium needs to be paid in a lumpsum under Single Premium Option. The Policy Tenure can be chosen as 5, 7, 10, 15 or 20 years.
The Maturity Sum Assured needs to be chosen and the premium is calculated according to the age and the Maturity Period or the Policy Tenure chosen.
This policy offers Premium Discount for Maturity Benefit > Rs 1,50,000. In this policy there are 3 options for choosing Death Benefit.
- Option A: Under this option, there is a choice of Single Life Insurance as well as Joint Life Insurance and the Death Benefit is equal to 5 times the Single Premium for the entire Policy Tenure
- Option B: Under this option, the Death Benefit is equal to 5 times the Single Premium in the 1st Policy Year and from the 2nd Policy Year onwards, Death Benefit is equal to the Maturity Benefit chosen at policy inception
- Option C: Under this option, the Death Benefit is equal to 1.1 X Single Premium for the entire Policy Tenure
Thus, on survival till Policy Maturity, the Maturity Benefit chosen at the time of policy inception would be paid to the policyholder and the policy would be terminated. However, if the Life Insured dies within the policy tenure, then the Death Benefit corresponding to the Option selected would be paid to the nominee and the policy would be terminated.
Key Features
Benefits
- Option A: Death Benefit = 5 X Single Premium in Single and Joint Life
- Option B:
- In 1st Policy Year, Death Benefit = 5 X Single Premium
- From the 2nd Policy Year onwards, Death Benefit = Maturity Benefit chosen at policy inception
- Option C: Death Benefit = 1.1 X Single Premium
On survival till the end of the policy tenure, the policyholder gets the Maturity Benefit as chosen at the policy inception and the policy terminates.
Life Insurance premiums paid up to Rs. 1,50,000 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.
There are no additional riders in this plan.
Eligibility
|
Minimum
|
Maximum
|
Sum Assured (in Rs.)
|
|
No Limit
|
Policy Term (in years)
|
5
|
20
|
Premium Payment Term (in years)
|
Single
|
|
Entry Age of Life Insured (in years)
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18 – Policy Term subject to a minimum of 30 days
|
60 – Age at Entry
|
Age at Maturity (in years)
|
-
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60
|
Single Premium (in Rs.)
|
20,000
|
No Limit
|
Payment modes
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Only Single
|
FAQs
Being a single premium plan, there is no requirement of further payment of premium.
There are surrender benefits in this plan after the 1st 6 months of the policy year. The Surrender Benefit depends on the age and the duration of completion and the Option.
Loan facility is not available under this plan from the insurer, however it could be used as collateral for a loan from a bank.