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IDBI Federal Life Incomesurance Guaranteed Money Back Insurance Plan

Securing the future of our loved ones goes beyond money, for it is imperative to offer a sense of comfort to them, knowing that life’s unpredictability will not leave them in a rut. The Incomesurance Guaranteed Money Back policy from IDBI Federal Life protects the financial requirements of an individual and his/her family. The money invested in this plan is guaranteed to be returned, with the policyholder also protected under a life cover. A limited premium payment plan, it is a smart option for those looking for protection at affordable prices.

Eligibility – Who is the IDBI Federal Life Incomesurance Guaranteed Money Back Insurance Plan for?

There are a few basic criteria an individual should keep in mind before purchasing this plan. These are highlighted below:

Parameters Criteria for eligibility
Type of plan Non-linked, Non-participating, money back scheme
Minimum age at entry 18 years
Maximum age at entry 55 years
Maximum age at maturity 65 years

Sum Assured and Premium Range – What you get and what it costs?

Sum Assured – The Incomesurance plan guarantees to pay an amount after the premium payment term. This amount depends on the age of the policyholder and the premium paid by him/her. The insurer pays an annual amount each year, for five years, i.e., from year 6 to 10 of the policy. The sum assured provided on death is fixed, and is equivalent to 10 times the premium paid each year.

Sum Assured Amount equivalent to 10 times the annual premium paid

Premium* - The amount a policyholder is eligible for depends on the amount he/she pays as premium. This plan comes with a premium payment term of 5 years, with the guaranteed amount paid for a period of five years after this. The table below highlights the various aspects related to the premium:

Term of the policy 10 years (fixed)
Premium Payment Term 5 years (fixed)
Premium Payment Mode Annual
Minimum Yearly Premium Amount Rs.20,000
Maximum Yearly Premium Amount No upper limit (subject to underwriting)

*Note that the amount a policyholder pays towards maintaining the policy (premium) depends on his/her age and the sum assured opted.

Plan Coverage – What the IDBI Federal Life Incomesurance Guaranteed Money Back Insurance Plan covers?

The Incomesurance Money Back Plan from IDBI Federal Life is designed to offer a source of regular income for a period of five years after the premium payment term. In addition to this, it also offers financial protection in the event of demise of policyholder. The table below highlights the different covers provided by this plan.

Death Benefit In the event of demise of policyholder during the policy term (10 years), his/her nominee is entitled to receive the death benefit. This amount is the highest of the following:
  • Sum assured on maturity*
  • Amount equivalent to ten times the annualised premium paid
  • Amount equivalent to 1.05 times the total premiums paid
*The sum assured on maturity is an amount equivalent to the sum of all assured payouts made annually
Guaranteed yearly payouts The policyholder is entitled to yearly payouts after the end of the premium payment term. This amount depends on the age and premium paid, as highlighted below:
Age at entry Assured payout
18-30 years 138% of yearly premium paid
31-36 years 137% of yearly premium paid
37-39 years 136% of yearly premium paid
40-41 years 135% of yearly premium paid
42-43 years 134% of yearly premium paid
44-45 years 133% of yearly premium paid
46 years 132% of yearly premium paid
47-48 years 131% of yearly premium paid
49-51 years 130% of yearly premium paid
52-53 years 128% of yearly premium paid
54 years 127% of yearly premium paid
55 years 126% of yearly premium paid

Riders/Add-on Plans – Additional coverage under the IDBI Federal Life Incomesurance Guaranteed Money Back Insurance Plan:

IDBI Federal Life currently does not provide the option to enhance this plan with a rider.

Exclusions – What the IDBI Federal Life Incomesurance Guaranteed Money Back Insurance Plan does not cover?

There is a single exclusion under this policy, suicide. In case the policyholder commits suicide, no benefits are payable to the nominee. If the date of suicide is within a year of purchasing the policy, the insurer will pay the nominee an amount equivalent to 80% of the premiums paid till the time of death. Similarly, if the policyholder commits suicide with a year of renewing the plan, the nominee will be paid an amount which is the higher of the surrender value (if applicable) or 80% of all premiums paid. The mental frame of the policyholder will not be considered in either case.

Other Key Features - Freelook Period, Surrender Values, Grace Period etc.

Grace period A grace period of 30 days is provided to pay the premium. Policies for which the premium has not been paid even after this period will be deemed lapsed.
Free look period IDBI Federal Life offers a 30 day free look period within which a policyholder can choose to return a policy. This period is applicable in cases where the policy is purchased through distance marketing. If the policy is purchased through any other mode, the free look period is limited to 15 days.
Revival A policy can be revived/reinstated under certain conditions. Firstly, any amount due should be cleared (with interest). The insurer might also ask the policyholder to undergo a medical test. Revival is possible only within two years of first missed payment.
Surrender A policyholder can choose to surrender the policy. The insurer will pay a surrender value if premiums for a minimum of two years are paid. This amount depends on the year of surrender.
Loan A policyholder can avail a loan in lieu of his/her policy, subject to the policy having acquired a surrender value. The maximum loan amount available under this plan is equivalent to 85% of the surrender value.

Tax Benefits – How you can save with the IDBI Federal Life Incomesurance Guaranteed Money Back Insurance Plan?

Purchasing the Incomesurance Guaranteed Money Back Plan from IDBI Federal Life enables one to save money on taxes as well. The premium paid towards maintaining this policy is eligible for tax deduction under Section 80C of the Income Tax Act. The maximum deduction permitted for a year is Rs.1.5 lakh. In addition to this, the amount received on death/as survival benefit is also eligible for tax saving under Section 10(10D) of the same act.

Why you should buy the IDBI Federal Life Incomesurance Guaranteed Money Back Insurance Plan?

Investing in the Incomesurance Money Back Insurance scheme is a smart option for anyone looking to get decent returns on their investment. Not only does this plan provide returns which range between 126% and 138% of the amount paid by them, it also provides life cover, ensuring that the demise of a policyholder does not leave a financial void. Compared to other investment options, this plan is not associated with market risks, ensuring that there is no chance for the money to lose its value. The limited premium payment option helps one save money compared to a policy with regular payments for the entire policy term. A policyholder can also choose to create an exclusive fund for his/her nominee, with this fund safe from any creditors/claimants. Only the nominee is entitled to use the money in this fund, ensuring that the policyholder needn’t worry about the money falling into wrong hands.

In addition to the benefits of the plan itself, IDBI Federal Life is one of the largest insurers in the country, with over 10 lakh customers trusting the company with their investments. IDBI Bank is also one of the most trusted banking institutions in the country, with IDBI Federal Life being a JV between it, Federal Bank, and Ageas. The insurer had a grievances solved ratio of 100% during 2015-16, showcasing its commitment to solving consumer issues. All these points make this plan a great option for those looking at returns plus safety.