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IDBI Federal Life Wealthsurance Growth Insurance Plan

 Investing for the future goes beyond saving money for a rainy day, it is now imperative to have an investment backup which not only secures the future, but also provides additional incentives. The Wealthsurance Growth Insurance policy offered by IDBI Federal Life is an excellent mode to meet two needs, insurance plus investment. This is a unit linked scheme which provides 9 fund options to choose from, ensuring that each individual can customise the plan to suit his/her needs.

Eligibility – Who is the IDBI Federal Life Wealthsurance Growth Insurance Plan for?

Individuals looking to secure their future through this plan should keep these basic criteria in mind:

Parameters Criteria for eligibility
Minimum age at entry 1 month
Maximum age at entry 64 years
Minimum age at maturity 18 years
Maximum age at maturity 74 years

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

Sum Assured – This is the minimum amount offered to the policyholder/nominee. It acts as an umbrella which shields against any unpredictable life event. The sum assured varies based on the age of policyholder and the premium paid, with it highlighted in the table below:

Minimum Sum Assured Rs.1.75 lakh The minimum sum assured is computed as shown below:
  • Entry age less than 45 years – The sum assured is the higher of:
    • 10 times the annualised premium paid by the policyholder, or
    • Annualised premium x policy term x ½
  • If the entry age is over 45 years, the sum assured is the higher of the following:
  • 7 times the annualised premium paid by the policyholder, or
  • Annualised premium x policy term x ¼
Maximum Sum Assured The maximum sum assured is computed as shown below: Entry age less than 54 years
  • Premium payment term x annualised premium x 2
If the entry age is over 54 years, the sum assured is computed based on the PPT:
  • Annualised premium x 10, if PPT is more than 7 years
  • Annualised premium x 7, if PPT is less than or equal to 7 years

Premium* - The amount a policyholder can expect on maturity/as a death benefit depends on the money invested by him/her in the plan. The premium can be considered as the investment made by the policyholder, with this amount expected to be paid every year. The policy term under this plan ranges from 10 years to 30 years, with it possible to increase it in blocks of five years each. One can also opt for a limited premium payment term. The various aspects associated with the premium are listed below:

Minimum term of the policy 10 years
Maximum term of the policy 30 years
Premium Payment Mode Yearly
Premium Payment Term Minimum: 5 years Maximum: equivalent to policy term
Minimum Yearly Premium Amount Rs.25,000
Maximum Yearly Premium Amount Rs.95,000

Plan Coverage – What the IDBI Federal Life Wealthsurance Growth Insurance Plan covers?

The Wealthsurance Growth Insurance scheme provides life cover to an individual, in addition to providing unit linked returns. The table below highlights these benefits:

Maturity Benefit On survival of the policyholder until the policy term, he/she is entitled to a maturity benefit. The insurer will pay an amount equivalent to the fund value as on the maturity date. No further benefit will be payable after this.
Death Benefit If the policyholder passes away anytime during the policy period, his/her nominee will be paid a death benefit. This amount depends on the premium paid, and is the highest of:
  • Fund value as on date of death
  • Sum assured opted at inception of policy
  • 1.05 times the total premiums paid by the policyholder

Note that the benefits will be paid only if the policyholder has paid all premiums.

Riders/Add-on plans – Additional coverage under the IDBI Federal Life Wealthsurance Growth Insurance Plan:

There is no rider offered with this plan. Interested individuals can approach the insurer for the same.

Exclusions – What the IDBI Federal Life Wealthsurance Growth Insurance Plan does not cover?

The Wealthsurance Growth plan has a suicide exclusion, wherein the nominee is paid only the fund value if the policyholder commits suicide within a year of purchasing/renewing the policy. The insurer will not take the mental state of the policyholder into account, with it being applicable even if the suicide was committed in an insane frame of mind.

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

Grace period Policyholders are given a grace period of 30 days within which they can pay their premium amount.
Free look period Policyholders who purchase this policy through distance marketing modes (email, SMS, telephone, etc.) are entitled to a 30 day free look period wherein they can choose to return the policy if they disagree with the terms and conditions. Policyholders who have purchased the policy through any other mode are given a 15 day period.
Revival A policy which has lapsed due to non-payment of premiums (after grace period) can be revived within two years of first missed payment. Revival is possible if the policyholder pays all the dues, including the premium outstanding and the interest rate/service charge levied by the insurer.
Fund options This plan offers 9 fund options, as shown below:
Fund Name Asset Category Risk
Equity Growth Fund SFIN Equities, money market High risk
Midcap Fund SFIN Mid/large cap stocks, money and cash market High risk
Bond Fund SFIN Money market, fixed income options Moderate risk
Income Fund SFIN Fixed income options, money and cash market Low risk
Liquid Fund SFIN Short-term debt, cash, money market Low risk
Pure Fund SFIN Equities, money and cash market High risk
Aggressive Asset Allocator Fund SFIN Equities, money market, fixed income instruments High risk
Moderate Asset Allocator Fund SFIN Equities, fixed income instruments, money market High risk
Cautious Asset Allocator Fund SFIN Equities, fixed income instruments, money market Moderate risk
Surrender value It is possible to surrender the policy after the fifth policy year.
Loan NA
Switching A policyholder can choose to switch between funds based on his/her current requirements.
Partial withdrawal Partial withdrawal is permitted if the policy has been in force for a minimum of five years. One can withdraw a maximum of 20% of the fund value each year, with the minimum withdrawal amount being Rs.10,000.

Tax Benefits – How you can save with the IDBI Federal Life Wealthsurance Growth Insurance Plan?

A policyholder is eligible for tax deductions on the premium paid. The maximum permissible quantum is limited to Rs.1.5 lakh per year (as of 2017-18). This is as per Section 80C of the Income Tax Act. The amount received as maturity/death benefit also qualifies for tax savings under Section 10(10D) of the same act.

Why you should buy the IDBI Federal Life Wealthsurance Growth Insurance Plan?

The Wealthsurance Growth plan is a smart investment option for those looking to enhance their financial assets over a period of time. Be it a long-term or mid-term goal, this plan caters to various requirements, with a host of customisation options available. Being linked to various market instruments, the investment offers returns which are on par with other investment modes. One can choose the kind of investment they wish to put their money in, with 9 fund options available. These options carry different risk profiles, ensuring that a policyholder can choose one based on his/her risk appetite.

The premium requirements for this plan are affordable, with a high sum assured offered, based on the entry age of a policyholder. The amount paid by a policyholder is invested in two accounts, an investment account and an insurance account, thereby offering dual benefits. This ensures that market conditions do not take away the protection aspect of the plan, with an assured amount paid to the nominee if the policyholder passes away during the policy period.

The plan offers loyalty additions equivalent to 3% of the fund value, with this amount added to the fund after the 10th year, with repeat additions every 5 years.

The family of a policyholder can be rest assured that they are financially protected in case of untimely demise of the policyholder.

All these benefits aside, IDBI Federal Life is one of the biggest private insurers in the country, having a 100% track record in terms of grievances solved during 2015-16. With a vision to keep everything transparent, a policyholder/nominee can be rest assured that they will not be made to run around, with minimal paperwork requirements in place.