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IDBI Federal Wealthsurance Maxigain Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.

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 of IDBI Federal Wealthsurance Maxigain Insurance Plan

  • It is a  plan Unit Linked Insurance 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
  • On survival till policy maturity, the Fund Value is paid to the policyholder as Maturity Benefit
  • 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
 
COMPARE THIS PLAN WITH OTHER ULIP PLANS

 

Benefits you get from IDBI Federal Wealthsurance Maxigain Insurance Policy

Death Benefit – 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.
 
Maturity Benefit – When the policy matures, the Fund Value is paid to the policyholder as Maturity Benefit and the policy terminates.
 
Income Tax Benefit - 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
 
 

Eligibility conditions & other restrictions in IDBI Federal Wealthsurance Maxigain Policy

 
Minimum
Maximum
Sum Assured (in Rs.)
For age<45 years, SA=10 X Annual Premium
For age>=45 years, SA=7 X Annual Premium
No Limit
Policy Term (in years)
10
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
Only Annual
 
 

Additional Features and Benefits of IDBI Federal Wealthsurance Maxigain Plan

Riders – There are No Additional Riders in this plan:
 
Investment Fund Options
In this plan, there are 3 Investment Strategies in this plan:
  1. 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.
  2. 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
  3. Market Fund Options: There are 2 Funds available under this option
    • Equity Growth Fund
    • Income Fund
 
Top-up – 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.
 
Switching - There is unlimited free switching allowed under this plan from one fund to another at any point of time. The minimum guarantee of the highest NAV will not apply to units switched out of Dynamic Guaranteed and
MaxiNAV Guaranteed funds. However switching into MaxiNAV Guarantee Fund is not allowed in the last policy year.
 
Partial Withdrawal - 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.
 
 

Charges in IDBI Federal Wealthsurance Maxigain Plan

Premium Allocation Charge – This charge is deducted from the Premium Paid by you

 

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 Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.

 

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
 
 
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.

 

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%
 
 
Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.

 

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
Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
5th onwards
NIL
 
 
Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.
 
Service Tax would be applicable on the charges depending on the applicable rates.
 
 

What happens if?

You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate equal to 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated Fund Value will be payable to the nominee.
The policy can be revived as well but within a period of 2 years from the Date of Discontinuance of the Policy or before completion of the Lock-in period of 5 policy years, whichever is earlier.
 
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.
 
You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the Fund Value net of any discontinuance charge, if at least 5 years’ premiums have not been paid, will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate equal 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
 
If the policyholder surrenders the policy after completion of 5 policy years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
 
You want a loan against your policy - There is no loan available under this plan.



 
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