Objective

This is an increasing term plan that aims to match the insurance cover with improvement in standard of living.

What does it do?

The sum assured increases at 10 per cent annually to minimize the impact of rising inflation and higher cost of living. The nominee receives the increased sum assured as death benefit on death of the insured.
Single and limited premium policies can be surrendered after payment of all the premiums. The surrender value, however, is not guaranteed and may change as per IRDA guidelines in future.

Pros

The policy offers flexible premium payment options for policyholder's convenience. It offers premium discounts for women and high sum assured policies.
Policyholders are allowed to surrender the policy in event of an emergency.
Premiums paid towards this policy qualify for taxation benefits.

Cons

Premiums are higher as compared to plain term insurance plans.
Surrender value is subject to change as per IRDA guidelines.

Suited for

Such plans are more suitable for those who expect their responsibilities to rise in future.

Our View

The plan fights inflation but charges higher premiums as compared to level term plans. Before going for such plans evaluate your needs and go through the policy conditions and costs thoroughly.

Eligibility

Entry Age (years)

Minimum

18

Maximum

65

Maximum Maturity Age (years)

75

Policy Term (years)

Minimum

10

Maximum

30

Sum Assured (Rs)

Minimum

500000

Maximum

No limit

Premium Payment Frequency

Single, Yearly, Half-yearly, Quarterly, Monthly

Premium Payment Term

Single, equal to policy term, Limited (3 and 5 years)

Premium Factor (multiply with annual premium)

Semi Annual: 0.51 ; Quarterly: 0.26; Monthly: 0.09

Policy Cover

Cover keeps increasing @ 10% on an annual basis

Other Features

Free Look Cancellation

In case, you are not satisfied, you may choose to cancel the policy within 15 days of receiving the policy documents. Upon such cancellation, you will be paid back the premiums, minus the cost of stamp duty, medical reports and proportionate premium for the period for which the risk was covered.

Grace Period

You are allowed to pay premiums within 30 days from the due date (15 days for monthly option). If a due premium is not received within the grace period of 30 days, your policy will lapse and the life insurance cover will be terminated.

Lapsed Policy Reinstatement

You can reinstate your lapsed policy any time (within 2 years from the due date of the first unpaid premium) by paying all the due premiums with interest and undergoing underwriting requirements, if any.

Tax Benefits

Section 80C, 10(10D) of the Income Tax Act, 1961 would apply.

Exclusions

In case of death by suicide during the first policy year, or within one year from the date of reinstatement, no death benefit is payable.

Surrender Value

Allowed only to Single and Limited Premium policyholders. Surrender value However is non guaranteed. For Limited Premium Payment
= 85% x {(Policy term less Policy duration in complete years) / Policy term} x Total premiums paid
For Single premium policies
= 85% x {(Policy term less Policy duration in complete years) / Policy term} x Single Premium

Customer Service

Address

IDBI Federal Life Insurance Co Ltd
First Floor, Tradeview,
Oasis Complex, Kamala City,
P. B. Marg, Lower Parel (West),
Mumbai - 400 013, Maharashtra.