IDBI Federal Wealthsurance Milestone Plan
IDBI Federal Wealthsurance Milestone Plan
IDBI Federal Wealthsurance Milestone 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 can either be paid in a lumpsum under Single Premium Paying Term or for a minimum period of 5 years under Regular Premium Paying Term or till the end of the Policy Tenure as selected at policy inception.
In this plan, there is a wide variety of choice for Investment Opportunity:
- Fixed Returns Options with Assured Returns for risk averse people
- Market Fund Options with Variable Returns Linked to Market Performance for risk lovers
- Dynamic Guaranteed Options with Returns Linked to the Market Performance but with Capital Protection for moderate risk takers
In this plan, the investment can be handled by the policyholder under Do-It-Yourself Option or entirely left to the fund managers, if the policyholder has no time or inclination manage the funds on his own under Leave-It-To-Us Option. Under Leave-It-To-Us option, there are 3 fund options: Cautious, Moderate and Aggressive. The premium, net of charges is invested in the chosen fund likewise.
On survival till policy maturity, the Fund Value is paid to the policyholder as Maturity Benefit 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.
There are 6 additional rider benefits available with this plan for enhancement of coverage like Major Disease Benefit, Hospital Cash Benefit, Accidental Death Benefit, Accidental Death and Disablement Benefit, Waiver of Premium Benefit on Death and Waiver of Premium Benefit on Total and Permanent Disablement.
Key Features
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 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. 1,50,000 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
- Major Disease Benefit
- Hospital Cash Benefit
- Accidental Death Benefit
- Accidental Death and Disablement Benefit
- Waiver of Premium Benefit on Death
- Waiver of Premium Benefit on Total and Permanent Disablement
- Do-It-Yourself: Whereby you can choose your own fund depending upon your risk appetite from any of the 3 types of Investment Opportunity:
- Fixed Returns Options: There are 2 funds available under this option
- Monthly Guaranteed Interest Fund
- Guaranteed Return Fund
- Dynamic Guaranteed Options: There is 1 fund available under this option
- Dynamic Guaranteed Fund
- Market Fund Options: There are 7 Funds available under this option
- Equity Growth Fund
- Nifty Index Fund
- Midcap Fund
- Pure Fund
- Bond Fund
- Income Fund
- Liquid Fund
- Fixed Returns Options: There are 2 funds available under this option
- Leave-It-To-Us: Whereby you can leave the entire portfolio to be managed by the Fund Managers. You can choose a type of investment like Cautious, Moderate or Aggressive and the fund is managed likewise. Equity component may go up to 25% in Cautious, 50% in Moderate and upto 100% in Aggressive.
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.
There is unlimited free switching allowed under this plan from one fund to another at any point of time.
In this policy, there are Partial Withdrawal Benefits after completion of 5 policy years of a minimum amount of Rs 10,000. The balance Fund Value left after withdrawal should be at least 50% of the single premium amount subject to a minimum of Rs 35,000 in the case of Single Premium plans or at least two annual premiums in the case of Regular Premium plans. There is no charge for Partial Withdrawal now.
Variants
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Premium Band and Type
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Premium Allocation Charge
|
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Regular Premium of Rs 20,000 to Rs 49,999
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Year 1: 9.45%,
Year 2 - Year 5: 6.3% and 4.9% thereafter |
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Regular Premium of Rs 50,000 to Rs 99,999
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Year 1: 8.9%,
Year 2 – Year 5: 6.3% and 4.9% thereafter |
|
Regular Premium of Rs 1,00,000 and above
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Year 1: 8.4%,
Year 2 – Year 5: 5.6% and 4.9% thereafter |
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Single Premium
|
2% of Single Premium
|
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Top-Up Premium
|
3.3% of Top Up Premium
|
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Policy Year
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Policy Administration Charge
|
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Year 1
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NIL
|
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Year 2 – Year 5
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2% for Single Premium till Rs 1,00,000 and 1.5% for Single Premium thereafter. No charge under Regular Premium till Premium Paying Term
|
|
Year 6 onwards
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0.25% for Single Premium and 1.75% for Regular Premium after the Premium Paying Term is over
|
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As and When: Top Up Premium
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2.2% of Top Up Premium
|
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Type
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Charge
|
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Monthly Guaranteed Interest Fund
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1.25% p.a. + an Investment Guarantee Charge of 0.15% p.a.
|
|
Guaranteed Return Fund
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1.25% p.a. + an Investment Guarantee Charge of 0.25% p.a.
|
|
Dynamic Guaranteed Fund
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1.35% p.a. + an Investment Guarantee Charge of 0.60% p.a.
|
|
Equity Growth Fund
|
1.35%
|
|
Nifty Index Fund
|
1.35%
|
|
Midcap Fund
|
1.35%
|
|
Pure Fund
|
1.35%
|
|
Bond Fund
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1.35%
|
|
Income Fund
|
1.35%
|
|
Liquid Fund
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1.35%
|
|
Asset Allocator Funds
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1.35%
|
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Year of Discontinuation
|
Annual Premium <= Rs 25,000 p.a.
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Annual Premium > Rs 25,000 p.a.
|
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1st
|
Lower of 20% of (Annual Premium or Fund Value) subject to a maximum of Rs 3,000
|
Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
|
|
2nd
|
Lower of 15% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
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Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
|
|
3rd
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Lower of 10% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,500
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Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
|
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4th
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Lower of 5% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,000
|
Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
|
|
5th onwards
|
NIL
|
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Eligibility
|
|
Minimum
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Maximum
|
|
Sum Assured (in Rs.) for Regular Premium
|
For age<45 years, SA=higher of (10 X AP) or (0.5 X PT X AP)**
For age>=45 years, SA=higher of (7 X AP) or (0.25 X PT X AP)**
|
No Limit
|
|
Sum Assured (in Rs.) for Single Premium
|
For age<45 years, SA= 1.25 X Single Premium
For age>=45 years, SA=1.1 X Single Premium
|
No Limit
|
|
Policy Term (in years)
|
10
|
75- Age at Entry
|
|
Premium Payment Term (in years)
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Single
|
Till the end of the Policy Tenure
|
|
Entry Age of Life Insured (in years)
|
18
|
65
|
|
Age at Maturity (in years)
|
-
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75
|
|
Annual Premium (in Rs.)
|
20,000 annually
50,000 semi-annually
|
No Limit
|
|
Single Premium (in Rs.)
|
35,000
|
No Limit
|
|
Payment modes
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Single, Yearly and Half-Yearly
|
|
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.
