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IDBI Federal Wealthsurance Milestone Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.

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 of IDBI Federal Wealthsurance Milestone Insurance Plan

  • It is a  plan Unit Linked Insurance Plan
  • There are 2 Investment Strategies available in this plan: Do-It-Yourself Option or Leave-It-To-Us
  • Under Do-It-Yourself, there are 3 Investment Opportunities available: Fixed Returns Options, Market Fund Options and Dynamic Guaranteed Options
  • Under Leave-It-To-Us, there are 3 Investment Fund available: Cautious, Moderate and Aggressive
  • 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
  • There are 6 additional rider benefits available with this plan

COMPARE THIS PLAN WITH OTHER ULIP PLANS
 


Benefits you get from IDBI Federal Wealthsurance Milestone 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 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. 1,50,000 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

 
 

Eligibility conditions & other restrictions in IDBI Federal Wealthsurance Milestone Policy

 
Minimum
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)
Single
Till the end of the Policy Tenure
Entry Age of Life Insured (in years)
18
65
Age at Maturity (in years)
-
75
Annual Premium (in Rs.)
20,000 annually
50,000 semi-annually
No Limit
Single Premium (in Rs.)
35,000
No Limit
Payment modes
Single, Yearly and Half-Yearly
 
**AP=Annualized Premium
**PT=Policy Tenure
**SA=Sum Assured
 
 

Additional Features and Benefits of IDBI Federal Wealthsurance Milestone Plan

Riders – There are 6 Additional Riders in this plan:
  1. Major Disease Benefit
  2. Hospital Cash Benefit
  3. Accidental Death Benefit
  4. Accidental Death and Disablement Benefit
  5. Waiver of Premium Benefit on Death
  6. Waiver of Premium Benefit on Total and Permanent Disablement
 
Investment Fund Options - In this plan, there are 2 Investment Strategies in this plan:

 

  1. 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
  2. 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.
 
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.
 
Partial Withdrawal - 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.
 
 

Charges in IDBI Federal Wealthsurance Milestone Plan

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

 

Premium Band and Type
Premium Allocation Charge
Regular Premium of Rs 20,000 to Rs 49,999
Year 1: 9.45%,
Year 2 - Year 5: 6.3% and
4.9% thereafter
Regular Premium of Rs 50,000 to Rs 99,999
Year 1: 8.9%,
Year 2 – Year 5: 6.3% and
4.9% thereafter
Regular Premium of Rs 1,00,000 and above
Year 1: 8.4%,
Year 2 – Year 5: 5.6% and
4.9% thereafter
Single Premium
2% of Single Premium
Top-Up Premium
3.3% 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
NIL
Year 2 – Year 5
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
0.25% for Single Premium and 1.75% for Regular Premium after the Premium Paying Term is over
As and When: Top Up Premium
2.2% of Top Up Premium
 
 
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.

 

Type
Charge
Monthly Guaranteed Interest Fund
1.25% p.a. + an Investment Guarantee Charge of 0.15% p.a.
Guaranteed Return Fund
1.25% p.a. + an Investment Guarantee Charge of 0.25% p.a.
Dynamic Guaranteed Fund
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
1.35%
Income Fund
1.35%
Liquid Fund
1.35%
Asset Allocator Funds
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.
Annual Premium > Rs 25,000 p.a.
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
Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
3rd
Lower of 10% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,500
Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
4th
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
 
 
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 the savings account rate of State Bank of India 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 to the savings account rate of State Bank of India 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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