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IDBI Federal Termsurance- Level Cover with Return of Premium

Objective

The policy provides financial assistance to the family members if the insured member dies during the policy term. The policy will return all premiums paid on survival of the policyholder.


What does it do?

This is a level term cover in which the sum assured remains same during the policy term. Also, being a return-of-premium policy, it will return all basic premiums in case the policyholder outlives the policy term. Death benefit is the sum assured taken at the time of buying this plan. Single and limited premium policyholders are allowed to surrender their policy after paying all 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 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.


Cons

Surrender value is subject to change as per IRDA guidelines.


Suited for

This policy is suitable for those who do not want to let go of premiums paid on surviving the policy term.


Our View

Return of premium option appears attractive to many, but policies with this option charge hefty premiums as compared to a plain term insurance plan. You should consider a plain term policy that comes at much lower prices.

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)
Policy CoverCover remains fixed during the policy term
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.
Maturity ValuePolicy refunds all basic premiums (excluding extra premiums paid if any) on survival at maturity.
Surrender ValueAllowed only to Single and Limited Premium policyholders. Surrender value However is non guaranteed. For limited and regular payment option
= 75% x {(policy duration in complete years) / Policy term} x total premiums paid
For Single premium policies
=75% x {( 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
10219452449530015450676126882994111928146761188428
151095012840166652563635853496746866393109NA
208220101551344021097296144127657307NANA
257230918012435196182759138522NANANA
3068708955122551941427336NANANANA
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
1021015226502625037757506946959893925124899162996
151021511535140702121629308409365672977707NA
20750088201125017323241233389847243NANA
256420787510305160482247431620NANANA
3060157590100951586122287NANANANA
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
10518705967075060116960165206234685334900472328663646
15524106261083295131342188564268872384387544969NA
20556057018595130152762219436313854449565NANA
256168079995110850178823257329369325NANANA
306948092670129645210137303314NANANANA
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
1048510543156456095659133382191131270895383707543626
15485255560569195107066151776217498310692442748NA
20502956019578450123811176205253504363511NANA
25541056769590675144313206635298129NANANA
306001577430105390169269243559NANANANA
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
108961099735120960177633232237298248375887455124535551
1542060497106492099960138924189873256904338351NA
2035700445955964094061131988183005251515NANA
2535490456306246099229139927195364NANANA
30375004959068610109599155159NANANANA
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
108584592400106560151113197149258723328746407082488461
1539090444605458582756114121157862215033287878NA
2032400385054962077095107576150807208726NANA
2531260388355148080852113815160497NANANA
3032520416555616089097126123NANANANA
Figures indicate premiums on a Rs 20 lakh policy for an age over different policy tenures exclusive of service tax.

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