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IDBI Federal Termsurance- Increasing Term Plan

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) 
Minimum18
Maximum65
Maximum Maturity Age (years)75
Policy Term (years) 
Minimum10
Maximum30
Sum Assured (Rs) 
Minimum500000
MaximumNo limit
Premium Payment FrequencySingle, Yearly, Half-yearly, Quarterly, Monthly
Premium Payment TermSingle, 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 CoverCover keeps increasing @ 10% on an annual basis
Other Features 
Free Look CancellationIn 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 PeriodYou 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 ReinstatementYou 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 BenefitsSection 80C, 10(10D) of the Income Tax Act, 1961 would apply.
ExclusionsIn 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 ValueAllowed 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 
AddressIDBI Federal Life Insurance Co Ltd
First Floor, Tradeview,
Oasis Complex, Kamala City,
P. B. Marg, Lower Parel (West),
Mumbai - 400 013, Maharashtra.
Mail To[email protected]
Call On1800 102 5005 for non MTNL subscribers and 1800 22 1120 for MTNL subscribers from 8A.M to 8 P.M
SMSTerm' to 5757515
Annual Premium Option for Male
Policy Term (in years)Age (in years)
253035404550556065
1040174665600992031345720132308474850580759
154615574480181242418672283024410871520NA
20564475701077317177259883997963742NANA
2572541002614674235853608156604NANANA
30937913413198543225450125NANANANA
Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures exclusive of service tax.
Annual Premium Option for Female
Policy Term (in years)Age (in years)
253035404550556065
1038184183509673511060915860237813668659310
15420049806474987914632219833367853329NA
2049636258863213528201853077648113NANA
256092816711637184232785743165NANANA
30775210773156212506238430NANANANA
Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures exclusive of service tax.
Single Premium Option for Male
Policy Term (in years)Age (in years)
253035404550556065
102744032138419816484595105142062215576332593533288
15438745511277522120737180866271468414331647333NA
206563688860127007202048302867457353704346NANA
2596645134394196760313921472287719494NANANA
30137581197108290434465612705556NANANANA
Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures exclusive of service tax.
Single Premium Option for Female
Policy Term (in years)Age (in years)
253035404550556065
102599628735353255146074920112140167373254860401746
1539757474596225095764142062212229320756494929NA
205746972990101526159506236811356463544021NANA
2580908109112156206246566368852559365NANANA
30113395158298229196365025550162NANANANA
Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures exclusive of service tax.
Annual Premium Option under Limited Pay- 3 year option for Male
Policy Term (in years)Age (in years)
253035404550556065
10132141542120053308654515967426102510158740256534
152094926228367865717485600128569196743308634NA
2031175420986007595479143130216359334213NANA
25457666352892894148149223016340211NANANA
306502293026136983219581333002NANANANA
Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures exclusive of service tax.
Annual Premium Option under Limited Pay- 3 year option for Female
Policy Term (in years)Age (in years)
253035404550556065
1012533138111691524546356185324079477121343192240
151900722626295814540867248100463152030235334NA
2027324346284805775401111891168530257637NANA
25383635162673787116376174102264294NANANA
305363574766108132172144259506NANANANA
Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures exclusive of service tax.