IDBI Federal Termsurance Protection Plan
IDBI Federal Termsurance Protection Plan
IDBI Federal Termsurance Protection Plan is a Term Plan. It is a traditional plan without Bonus Facility. There are 3 variants of the plan
- IDBI Federal Termsurance – Level Cover– The life cover is uniform throughout the Policy Term and this variant is a vanilla Term Plan
- IDBI Federal Termsurance – Increasing Cover– The Life Cover increases by 10% of the initial Sum Assured every year without any further medical underwriting.
- IDBI Federal Termsurance – Level Cover with Return of Premium– The life cover is uniform throughout the policy term but the premiums paid towards this plan is returned as Maturity Benefit when the policy matures.
In this plan, premium can be paid in a Lumpsum under Single Premium Option or for 3-5 years under Limited Premium Payment Option or it needs to be paid till the end of the Policy Term for Regular Premium Payment option.
The cover is uniform throughout the policy tenure under IDBI Federal Termsurance – Level Cover and IDBI Federal Termsurance – Level Cover with Return of Premium. The cover increases at a steady pace under IDBI Federal Termsurance – Increasing Cover Option.
If the Life Insured dies within the policy tenure, Death Benefit is paid to the nominee according to the plan option selected. Moreover, there is no Maturity Benefit under Level Cover and Increasing Cover Option. Only under Level Cover with Return of Premium option, the premiums paid till date are returned as Maturity Benefit.
Key Features
- Single
- Limited- 3 or 5 years
- Regular
The below illustration is for a healthy Male (non-tobacco user) opting for a Sum Assured = Rs. 10 lakhs and Policy Term = 25 years
Benefits
In case of death of the policy holder, the nominee gets the corresponding Sum Assured as Death Benefit under the plan
There are no maturity benefits under Level Cover and Increasing Cover option. Only the premiums are paid back on maturity under Level Cover with Return of Premium Option.
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C
There are no riders are available in this policy
Eligibility
| Minimum | Maximum | |
| Sum Assured (in Rs.) | 5,00,000 | No Limit |
| Policy Term (in years) | 10 | 30 |
| Premium Payment Term (in years) | Single, Limited= 3 or 5 years
Regular= Equal to Policy Term |
|
| Entry Age of Policyholder (in years) | 18 | 65 |
| Age at Maturity (in years) | - | 75 |
| Premium | Not Specified | |
| Payment modes | Single, Yearly, Half-Yearly, Quarterly and Monthly | |
FAQs
What happen if you stop paying the premium ?If the policy holder stops paying the premium, then all benefits of the policy will cease after the expiry of the grace period from the due date of the first unpaid premium. You can re-instate the policy within 2 years of lapsation by paying up all due premiums with interest.
What happen if you want to surrender the policy ?Option to surrender is available after 3 years only in single, 3-pay and 5-pay options only but there is no guarantee of the surrender value.
What happen if you want a loan against your policy ?Loan facility is not available under this policy.
