IDBI Federal Termsurance-Level Term Plan

Objective

This is a plain term insurance policy that aims to help family members tide over financial difficulties and maintain same standard of living in case of death of breadwinner.

What does it do?

The policy offers a level term cover where the sum assured remains constant throughout the policy term and is paid as death benefit in case of unfortunate death of the policyholder.
The plan allows single and limited premium policyholders to surrender their policy after paying all premiums. The surrender value, however, is not guaranteed and may change as per IRDA guidelines.

Pros

The policy offers flexible premium payment options for convenience.
Premium discounts are available for women. High sum assured policies also get discount.
Policyholders are allowed to surrender their policies in the event of an emergency.
Premiums qualify for taxation benefits.

Cons

Surrender value subject to change as per IRDA guidelines.

Suited for

A plain term insurance policy is recommended for everyone.

Our View

A level term plan is the most economical way of securing your life. You should consider regular premium payment option as single premium policies may turn out to be expensive because you lock in a large amount for a fixed cover. The reason we say this is because in case something goes wrong in early years of the policy, you have already paid a huge chunk of amount as premium to the insurance company.