We live in a time where everything we do revolves around money, with most of us doing our best to ensure that we make enough money to support our lifestyle. The Wealthsurance Suvidha Growth policy offered by IDBI Federal Life is a unit linked scheme which provides a one-stop solution to cater to our need of making money. This scheme uses a Systematic Allocator to cater to the financial needs of an individual at different stages of his/her life. It selectively invests the money in different funds, based on whether an individual is approaching a certain period in his/her life. In addition to offering a great investment option, the plan also provides life cover to the individual, paying a death benefit if he/she passes away during the policy term.
Individuals looking to secure their wealth through this plan are expected to meet these basic eligibility criteria:
|Parameters||Criteria for eligibility|
|Minimum age at entry||1 month|
|Maximum age at entry||65 years|
|Minimum age at maturity||18 years|
|Maximum age at maturity||75 years|
|Plan type||Unit linked policy|
Sum Assured – The Wealthsurance Suvidha Growth Insurance Plan is designed to offer returns on an investment, ensuring that inflation and market conditions do not have a major impact on the money a policyholder pays. The sum assured is the minimum amount which a nominee is entitled to receive if the policyholder passes away during the policy term. This plan offers a fixed amount as sum assured, with this equivalent to 10 times the amount paid as premium every year.
|Sum Assured||10 x annual premium paid|
Premium* - A policyholder can customise this plan according to his/her needs. The scheme comes with multiple policy term options, with the premium payment term varying based on these terms. The policy term can be extended in a batch of five years. The premiums paid by a policyholder are invested in multiple funds, ensuring that the returns on maturity meet the expectations a policyholder has. Listed below are the various parameters associated with the premium.
|Minimum term of the policy||10 years|
|Maximum term of the policy||20 years|
|Premium Payment Mode||Yearly|
|Premium Payment Term||
|Minimum Yearly Premium Amount||Rs.15,000|
|Maximum Yearly Premium Amount||Rs.25,000|
*The premium varies based on factors like the entry age of policyholder, lifestyle habits, sum assured chosen, policy term, etc.
This plan provides a life cover wherein a death benefit will be paid to the nominee if the policyholder passes away during the plan term. In case of policyholder surviving the term, a maturity benefit will be paid to him/her. The benefits are highlighted in the table below:
|Death Benefit||The nominee is entitled to receive a death benefit if the policyholder passes away while the plan is in force. This amount is equivalent to the highest among the following:
|Maturity Benefit||The policyholder will be paid a maturity benefit equivalent to the fund value of the policy.|
Note: The benefits will be payable only if all premiums are paid. In cases where the premiums haven’t been paid, the insurer will pay the discontinued fund value/amount as applicable.
A policyholder cannot choose to add a rider to this policy.
The Wealthsurance Suvidha Growth scheme comes with one exclusion, suicide. Under this exclusion, the nominee will be paid only the fund value on the date of intimating the insurer. This is applicable if the policyholder commits suicide in any frame of mind within a year of buying/renewing the policy.
|Grace period||IDBI Federal Life offers a grace period of 30 days within which a policyholder can pay the premium.|
|Free look period||30 days if policy is purchased through distance marketing modes. 15 days if policy is purchased through other modes.|
|Revival||Policies for which the premium hasn’t been paid can lapse. A lapsed policy can be renewed by a policyholder only if he/she clears all dues, including the outstanding premium amount and any interest component levied by the insurer. A period of two years is given to revive a lapsed policy.|
|Fund options||There are two fund options offered under this scheme:
|Systematic Allocator||A policyholder can choose the systematic allocator, wherein the money in a given fund will be invested based on the maturity of the scheme. The allocator initially invests in the equity growth fund, migrating towards the income fund as the maturity period comes closer.|
|Guaranteed loyalty additions||A policyholder is entitled to earn assured loyalty additions after the 10th year of the policy. The additions are equivalent to 3% of the fund value (average) over the last three years. These additions are further provided at intervals of five years.|
|Partial withdrawals||A policyholder can make partial withdrawals, subject to the policy having been in force for a minimum of five years. A maximum of 20% of the fund value can be withdrawn by a policyholder in a given year, with the minimum amount being Rs.10,000.|
|Surrender value||A policyholder can choose to surrender the policy if it has been active for a minimum period of five years.|
|Loan||There is no provision for loan under this scheme.|
The government offers tax incentives to individuals who invest in insurance plans. As such, a policyholder can claim tax deductions to the tune of Rs.1.5 lakh per year on the premium paid by him/her towards this plan. This deduction can be availed under Section 80C of the Income Tax Act. Additionally, the amount received at maturity/death is also eligible for tax savings under Section 10(10D) of the Income Tax Act.
The Wealthsurance Suvidha Growth scheme is an excellent investment cum insurance option. It is ideal for people looking to secure their financial future. With life being unpredictable, it pays to be safe rather than sorry, and investing in this scheme provides life cover at affordable rates. One could argue that investing directly in funds can be just as advantageous, but the USP of this scheme is that it also doubles as a life insurance product.
One needn’t be an expert in markets to invest in this plan, for the systematic allocator automatically reinvests money based on the age of a policyholder. One can choose to switch between funds based on their needs, with no switching charges applicable. The amount invested also earns assured loyalty additions, thereby helping your money grow even more. The premiums are affordable, with the policy providing an option to choose the policy term and the premium payment term.
A policyholder can also create a fund exclusively for his/her dependants. The money in this fund cannot be utilised by anyone else, providing peace of mind and comfort to everyone involved.
All these factors apart, IDBI Federal Life is regarded as one of the best insurers in the country, with it offering protection to over 10 lakh individuals. The company aims to provide various insurance solutions to customers, with its 100% grievances solved ratio for 2015-2016 reflecting its aim to ensure customer satisfaction.
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