IDBI Federal Life Wealthsurance Future Star Plan

The cost of raising a child has become an extremely expensive affair in the 21st century. Right from birth to education, every aspect related to child requires a lot of money. Keeping such needs in mind, IDBI Federal Life has come up with the Wealthsurance Future Plan - a ULIP plan which help parents to save money for their children’s future. This policy comes with nine different fund options and also provides life cover to the parent. Besides, the Future Star Plan offers a lump sum payment if the parent dies and will also waive any future premiums.

Eligibility - Who the IDBI Federal Wealthsurance Future Star Plan for?

The IDBI Federal Wealthsurance Future Star Plan has a pre-set eligibility criteria, which every prospective policyholder should meet. You will find them below:

Particulars	Details
Minimum Age at Entry	18 years
Maximum Age at Entry	54 years
Minimum Age at Maturity	28 years
Maximum Age at Maturity	64 years
Plan Type	Unit-linked child plan

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

Sum Assured: This is the amount promised by the company depending on a variety of scenarios eg. Death, maturity, or surrender. Sum Assured for this policy is as follows:

Sum Assured
Person < 45 years of age	Person > 45 years of age
Higher of 7 times the annual premium or (0.5*annual premium*policy term)	PPT of 8 years of less PPT of above 8 years Higher of 7 times the annual premium or (0.25*annual premium*policy term) Higher of 10 times the annual premium or (0.25*annual premium*policy term)

Note: PPT here stands for Policy Payment Term

Premium Range:

Particulars	Minimum	Maximum
Premium Payment Term	5 years	Policy term
Policy Term	10 years	25 years
Premium Amount	Rs.25,000 (yearly)	Rs.95,000 (yearly)

Plan Coverage - What the IDBI Federal Life Wealthsurance Future Star Plan offer?

There are a number of features and benefits offered by the Wealthsurance Future Star Plan by IDBI Federal Life. Here are all of them specified in a tabular column:

Benefit	Details
Death Benefit	In case the person insured dies, all future premiums payable towards the policy and a lump sum amount will be paid to the beneficiary. Then all the future premiums payable added and are credit to a new fund option on a lump sum module. This fund will keep on accruing interest and the entire amount will be paid once the policy reaches maturity. Also, if the sum assured and future premiums payable is less than 105% of the total premiums paid, the differential amount will be paid as a benefit.
Wealth Care Switch Benefit	This is a form of a Death Benefit wherein, the benefit changes from an existing strategy to a systematic allocator facility. Doing so helps manage the accumulated funds in a much better way. Also, this would help cut the risk levels associated with the funds.
Education Support Benefit	If the policyholder dies before the policy reaches maturity, the benefits payable will be settled over the last five policy years through installments instead of a lump sum basis. Here’s how the settlement will be done: Time till the end of term Installment payable 1 year 50% of the fund value 2 years 40% of the fund value 3 years 30% of the fund value 4 years 20% of the fund value Upon maturity Any fund value remaining
Maturity Benefit	Once the policy reaches the end of its term, maturity benefit will be paid to the person insured. The amount payable would be the total fund value in the investment account. After this benefit is paid, the policy will be cease to exist. Policyholders can opt to receive the maturity benefit over a period of 5 years after the maturity date. Here’s how the payout would look like if they choose this option: Settlement period chosen (years) Installment that will be paid (shown as percentage of fund value   Y1 Y2 Y3 Y4 Y5 2 50% 50%       3 33% 17% 50%     4 25% 8% 17% 50%   5 20% 5% 8% 17% 50%
Guaranteed Loyalty Additions	Every policy will accrue a loyalty addition after the completion of 10 years. This benefit will be paid at every 5-year interval after that. The amount will be up to 3% of the average fund value over the preceding three-year period.

Exclusions - What the IDBI Federal Life Wealthsurance Future Star Plan doesn’t cover?

The IDBI Federal Life Wealthsurance Future Star Plan comes with a set of exclusions which are as follows:

• If the person insured commits suicide within 12 months of the commencement of the plan, death benefit will not be paid.
• If the person insured commits suicide within 12 months of reviving the plan, the death benefit will not be paid.
• Death benefit will be paid if the person insured commits suicide after 12 months of the policy start. The benefit payable here will be limited to the total fund value of the policy. Once this benefit is paid, the policy will be terminated.

Other Key Features - Free Look Period, Policy Loan, Nomination etc.

Apart from the ones mentioned above, the IDBI Federal Life Wealthsurance Future Star Plan comes with a few key features. They are listed below in a tabular format:

Feature	Details
Free Look Period	Based on the IRDA regulation 6 (2) of the Policyholders’ Interest Regulations Act, 2002, a policyholder can choose to return the policy if they are not satisfied with the terms and conditions they are offered. The policyholder should return the original policyholder along with a letter stating the reason for doing so. Upon receiving such a request, the company will deduct appreciate risk premium for the period during which the policy was active.
Nomination	Nomination facility will be allowed based on Section 39 of the Insurance Act.
Assignment	Assignment facility will be allowed based on Section 38 of the Insurance Act.
Policy Revival	Policyholders can revive the policy within 2 years of the last unpaid premium. In such a case, they will need to pay the pending premiums along with a penalty.
Partial Withdrawal Facility	Policyholders have the option to partially within money from the fund value after completion of five policy years. If they choose to do so, here are a few condition that will become active: The minimum amount a policyholder can withdraw is Rs.10,000. Also, at no point can they withdraw an amount less than a year’s premium. The total partial withdrawals a policyholder can make should not be more than 20% of the fund value at the beginning of the year. After a withdrawal is made, the amount will be deducted from the total fund value.
Surrender Value	A policyholder can choose to surrender a policy whenever they feel the need to. If the policy is surrendered within five years of buying it, a discontinuance charge will be deducted and the remaining money will be put in a discontinued policy fund. Upon completion of the lock-in period, the proceeds will be settled with the policyholder. If the policy is surrendered after five years, no discontinuance charge will be deducted and the total amount payable at the time of surrender will be paid.

Tax Benefits - How you can save with the IDBI Federal Life Wealthsurance Future Star Plan?

The IDBI Federal Life Wealthsurance Future Star Plan comes with a few tax benefits. These are as follows:

• Deductions on premiums paid will be applicable based on Section 80C of the Income Tax Act.
• Deductions on death benefit and survival benefit will be applicable based on Section 10 (10D) of the Income Tax Act.

Other Benefits - How you can save with the IDBI Federal Life Wealthsurance Future Star Plan?

There are several other benefits that the IDBI Federal Life Wealthsurance Future Star Plan offers. They are listed below:

• Option to customise: Not all policies offer a prospective policyholder to customise their insurance plan. The Wealthsurance Future Plan, however, is different as it allows an individual to customise the plan based on their needs. They can choose the premium amount they are willing to pay and the coverage they want to get.
• Huge network: As IDBi Federal Life is a joint venture between two of India’s leading banks, all the bank branches of these respective banks will also serve as official offices. At present, there are 2,964 branches across the country where customers can buy policies from IDBI Federal Life.

Why you should buy the Wealthsurance Future Star Plan from IDBI Federal Life?

There are plenty of reasons why you should buy the Future Star Plan from IDBI Federal Life. They are as follows:

• One of the leading insurance providers: Based on data available, the company has sold over 10 lakh policies with a sum assured of over Rs.58,600 crores. Besides, the company has a capital size of Rs.8,000 crore, which makes IDBI Federal Life a robust enterprise.
• Option to switch: To begin with, this policy comes will multiple fund options which policyholders can choose depending on their risk appetite. Also, if they are looking to modify the benefits they are getting, they can choose to invest in a different fund to get varied levels of returns.