IDBI Federal Incomesurance Endowment & Money Back Plan
IDBI Federal Incomesurance Endowment & Money Back Plan
IDBI Federal Incomesurance Endowment & Money Back Plan is an Endowment cum Money Back Plan as the name suggests. It is a Traditional Plan without Bonus facility. It is a plan with Guaranteed Income linked to GOI Bonds
How it works – In this plan, premium needs to be paid needs to be paid for r 5, 10 or 15 years.
After the Premium Paying Term is over, the Payout Period starts. Thus, during the Payout period of 5 or 10 years as chosen, Guaranteed Annual Payout is paid at the end of each year.
Guaranteed Annual Payout= Minimum Annual Payout + Additional Annual Payout
The Minimum Annual Payout is pre-decided at the time of policy inception while Additional Annual Payout is declared every time premium is paid, which is linked to the Government Securities prevailing at the time of premium payment. Higher the Interest Rates, higher will be the Additional Annual Payout. Once declared, the Payout becomes guaranteed.
However, there is an option of withdrawing the money every year as Money Back Option or taking the entire amount in a lumpsum as an Endowment Plan when the policy matures as Maturity Benefit. Interest is also paid for the entire period for which investment is not withdrawn.
This plan provides for Life Coverage of the Lump Sum Cover option where a lump sum amount would be paid to the nominee if the Life Insured dies within the Policy Tenure. There is an option of choosing Premium Waiver Benefit as well where all future premiums will be waived and Guaranteed Annual
Payout will continue as per schedule.
Key Features
Benefits
- 20% of Sum Insured for a Premium Paying Term of 10 or 15 years with Payout Period of both 5 and 10 years
- 16% of Sum Insured for a Premium Paying Term of 5 years and Payout Period of 5 years
- 8% of Sum Insured for a Premium Paying Term of 5 years and Payout Period of 10 years
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 is an Additional Rider of Waiver of Premium option in this plan
Eligibility
|
Minimum
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Maximum
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Sum Assured (in Rs.)
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Subject to Minimum Premium Requirement
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No Limit
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Policy Term (in years)
|
Premium Paying Term + Payout Period
|
|
Premium Payment Term (in years)
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5, 10
|
15
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Payout Period (in years)
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5
|
10
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Entry Age of Life Insured (in years)
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3 for PPT=15
8 for PPT=10
13 for PPT=5
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65
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Age at Maturity (in years)
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-
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75
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Entry Age of Policyholder (in years)
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18
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60 if WOP is chosen
No Limit if not chosen
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Premium (in Rs.)
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10,000
|
No Limit
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Payment modes
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Monthly, quarterly, half-yearly or annually
|
FAQs
If the policy holder stops paying the premium, the policy lapses and all benefits cease to exist. Paid up values are available after one, two or three full years premiums have been paid for policies with Premium Payment Period of 5, 10 and 15 years respectively. If the policy acquires a Paid Up Value, then it continues with reduced benefit. However, it can be revived within 2 years from the due date of the policy inception.
There are Surrender Benefits in this plan after the policy acquired Paid Up Value. Paid up values are available after one, two or three full years premiums have been paid for policies with Premium Payment Period of 5, 10 and 15 years respectively.
Loan facility is not available in this plan.