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IDBI Federal Life Wealth Gain Insurance Plan

Every individual has dreams and aspirations and most of them centre around wealth and all the advantages that come with it. Luxury vacations and beautiful houses are just some of the perks that come with wealth. In order to ensure that all dreams are realised IDBI Federal Life has introduced the Wealth Gain Insurance Plan that is a solution that provides not just life cover, but also works on building wealth over a long tenure. This unit linked insurance plan comes with 8 different fund offerings and also the choice to opt for more than one fund based on the policyholder’s financial aims. Additionally, a disability cover is also available. Policyholders, if are invested for a long time will receive guaranteed loyalty additions.

Eligibility - Who is the IDBI Federal Life Wealth Gain Plan for?

In order to avail the Wealth Gain plan, individuals will have to meet the following eligibility criteria:

Criteria Minimum Maximum
Age at Entry (in years) 5 years 60 years
Age at Maturity (in years) 18 years 74 years
Policy Tenure 10/15/20 years

All ages are based on the last birthday of the individual.

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

Sum Assured:

Sum Assured is dependent on the policy tenure, premiums paid and premium payment frequency.

Premium:

Premium Payment Tenure
  • For all ages below 50 - 5/10/15/20 years
  • For age 50 years and above - 10/15/20 years
Premium Payment Frequency Monthly and Yearly
Premium Amount
  • Monthly - Rs.2,500
  • Yearly - Rs.30,000
For yearly mode of frequency -
  • When premium payment term is 5/10 years, maximum premium that can be paid is Rs.10,00,000 per annum.
  • When premium payment term is 15/20 years, maximum premium that can be paid is Rs.6,00,000 per annum.
For monthly mode of frequency -
  • When premium payment term is 5/10 years, maximum premium that can be paid is Rs.83,000 per annum.
  • When premium payment term is 15/20 years, maximum premium that can be paid is Rs.50,000 per annum.

Customers should note that premium varies based on a number of factors such as age, policy tenure and location, among other factors.

How the IDBI Federal Life Wealth Gain Plan works?

Individuals will have to choose the premium amount that they wish to invest and also the mode of payment along with policy tenure. Once this is done, they will have to select their premium payment term and the fund that they would wish to invest in.

Plan Coverage - What the IDBI Federal Life Wealth Gain Plan covers?

Death Benefit In case of death of policyholder during policy tenure as long as the policy is in-force, higher of the following will be paid-
  • Death Sum Assured
  • Fund Value or
  • 105% of all premiums that have been paid
Death Sum Assured will be a higher of -
  • 10X annualised premium
  • 0.5*Policy Tenure*Annualised premium
Once death benefit has been paid, policy will cease and benefits will terminate.
Maturity Benefit This benefit amount is equal to the fund value and this includes total guaranteed loyalty additions in the policyholder’s investment account on the date of policy maturity. Once the maturity benefit has been paid, the policy will terminate.
Guaranteed Loyalty Additions Individuals who stay invested in the policy for a long time will be rewarded with guaranteed loyalty additions at the end of the tenth policy year and also every 5 years after. In case policyholders have invested in numerous funds, loyalty additions will be added to all funds in the exact same proportion as the value of the fund bears to total fund value.
Flexibility with Investment Management Policyholders have the option to take control of their investments with the flexibility to change them based on their needs and requirements. Realignment is also possible if the policyholder wishes to. Additionally, customers can also switch between funds any number of times without having to pay additional charges.
Waiver of Premium on Disability In case of complete and permanent disability of policyholder during the premium payment tenure as long as the policy is in force, the following is applicable -
  • Future premiums will be paid on the respective due dates
  • Life cover will continue until the end of the policy tenure
  • Guaranteed Loyalty Additions will be added based on scheduled.
  • Fund value will be paid on maturity.
This benefit will be applicable only if disability occurs within a period of 180 days from date of occurrence of sickness or accident.

Investments available under the IDBI Federal Life Wealth Gain Plan:

Customers have the option of choosing between two investment options and these are -

  • Do-it-yourself wherein individuals can invest in the different fund options and manage them based on their needs and requirements. However, only those investors who have a good knowledge of the market value and funds.
  • Leave-it-to-us wherein IDBI Federal Life will take care of the investment. Policyholders will only have to provide an indication of the risk level that they would wish to adhere to - Aggressive, Moderate and Cautious.

Funds provided by IDBI Federal Life invest in money market, bonds as well as stocks and all returns are dependent on the market conditions and performance. Returns as well as risk would vary based on the fund type chosen.

IDBI Federal Life also offers Systematic Allocator which is a programmed solution wherein the fund mix will become more conservative as the goal of the investment approaches.

Investment Fund Options:

Given below are the list of fund options provided by IDBI Federal Life.

Fund Option Risk and Return
Equity Growth Fund High returns and high risk
Midcap Fund High returns and high risk
Bond Fund Moderate returns and Moderate risk
Income Fund Returns related to short-term rate of interest and risk is low
Pure Fund High returns and high risk
Aggressive Asset Allocator High returns and high risk
Moderate Asset Allocator High returns and high risk. However, risk and returns would be lower than Aggressive Asset Allocator fund due to low exposure to equity assets.
Cautious Asset Allocator Moderate returns and Moderate risk due to low exposure to equity assets.

Exclusions - What the IDBI Federal Life Wealth Gain Plan does not cover?

In case the policyholder commits suicide, regardless of whether he/she is sane or insane within a period of 12 months from date of policy commencement or revival, the fund value will be paid.

The Total and Permanent Disability comes with its own set of exclusions, such as:

  • Policy benefits will not be available for pre-existing disorders or conditions until 48 continuous months of coverage has elapsed since risk commencement.
  • Suicide or self-inflicted injuries, immorality, insanity or participation of policyholder in criminal acts.
  • Use of drugs, alcohol or solvents unless prescribed by a registered medical practitioner.
  • War, hostilities, invasion, participation in acts of violence wilfully.
  • Radioactive contamination as a result of a nuclear accident.

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

Free Look Period If policyholders are not satisfied with their plan they have the option to return the same along with stated reasons within a period of 15 days from the date of receipt of policy. In case the policy was sold through distance marketing channels such as internet, SMS and telephone, the free look period available is 30 days.
Child Policies In case the person insured is a minor, the vesting age of this person will be given in the policy schedule. In case of untimely death of policyholder wherein the insured is a child, the legal guardian will be the policy owner until the child attains majority. In such scenarios, the legal guardian can either continue the policy or surrender the same as long as the lock-in period has been completed.
Nomination Based on provisions of Section 39 of the Insurance Act of 1938, nomination will be allowed.
Assignment Based on provisions of Section 38 of the Insurance Act of 1938, assignment will be allowed.
Partial Withdrawal Policyholders can make partial withdrawals but only after the completion of 5 policy years and as long as the policy is in force.
Surrender Policy can be surrendered after the completion of the lock-in period of 5 years. In case the policy is surrendered within the lock in period, a discontinuance charge will be applicable.
Total and Permanent Disability For this benefit to be provided, one of the following conditions will have to be met-
  • Loss of independent living
  • Loss of use of sight or limbs
  • Being unable to work
Settlement Option Through this option, policyholders can withdraw their maturity benefit in the form of installments within a period of five years from the date of maturity rather than redeeming the complete amount on the date of maturity.
Premium Discontinuance
  • If individuals wish to discontinue their premiums after 5 policy years, the following options are available -
    • Revival of policy within two years after premium discontinuance
    • Withdrawal from policy without a risk cover
    • Conversion of policy into a paid-up policy
  • If individuals wish to discontinue their premiums within 5 policy years, the following options are available-
    • Policy revival within a two years by paying all due premiums
    • Complete policy withdrawal

Tax Benefits - How you can save with the IDBI Federal Life Wealth Gain Plan?

Policyholders can avail 2 tax benefits when they invest in this ULIP.

  • Customers can avail tax benefits under Section 80C of the Income Tax Act of 1961 wherein the premiums that are being paid are eligible for tax deductions.
  • Policyholders can also avail benefits under Section 10(10D) of the Income Tax Act of 1961 wherein the benefits that are being received through the policy will qualify for exemption.

However, individuals should note that tax laws are subject to change from time to time and are therefore advised to talk to their tax consults before investing.

Why you should buy the Wealth Gain Plan from IDBI Federal Life?

IDBI Federal Life is sought after life insurance Company that is known for its transparency with regards to their communication and priority given to customer care. This prolific company provides a plethora of insurance products that are suited to a large number of customers. This customer-friendly company also employs state-of-the-art technology and has a very high claim-settlement ratio.

Keeping up with the digital age, IDBI Federal Life allows customers to apply for their policies and track the same online. Individuals can also make use of the numerous tools and calculators available for their needs and requirements. Due to these reasons, IDBI Federal Life is one of the most well-known life insurance providers in the country.