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IDBI Federal Life Insurance launches a new ULIP – ‘Smart Growth Plan’

Mumbai / Chennai, January 2019IDBI Federal Life Insurance, India’s leading private life insurance company, today announced the launch of ‘IDBI Federal Life Insurance Smart Growth Plan’, a non-participating unit-linked life insurance plan, offering life cover and market-linked returns for securing the family’s financial future. ‘IDBI Federal Life Insurance Smart Growth Plan’ complements the existing ULIPs which offer the advantage of investing in markets along with the benefit of life insurance cover. 

An interesting feature of ‘IDBI Federal Life Insurance Smart Growth Plan’ is it offers a choice between two Death Benefit options – ‘Prime’ and ‘Plus’. The ‘Prime’ option provides for higher of Death Sum Assured or Fund Value, while in the ‘Plus’ option, the policy holder gets enhanced protection as the Death Sum Assured is paid over and above the Fund Value.

Maturity Benefit would be the Fund Value including Loyalty Additions of the policyholder’s unit-linked fund as on the date of maturity. Loyalty Additions will be credited at the end of 10th policy year and every 5 years thereafter, including the last policy year.

The policyholder can choose any premium payment term – 10 or 15 or 20 years with minimum premium at INR 35,000 annually.

Commenting on the launch, Mr. Karthik Raman, CMO and Head – Products and Strategy, IDBI Federal Life Insurance said,“We are happy to introduce the IDBI Federal Life Insurance Smart Growth Plan, a ULIP which helps policy-holders to not only build significant wealth over a longer term, but also offers commensurate life insurance cover. Significant Loyalty Additions at the end of 10, 15 and 20 years in case of maturity benefit, and the option to get both death sum assured and fund value in case of death benefit are the key attributes of this plan, which would help boost the overall offering for the policyholder.”

Since IDBI Federal Life Insurance Smart Growth Plan is unit-linked, the policy holder can stay in complete control of his equity allocation depending upon the risk appetite. The plan also offers a unique facility in Systematic Allocator which is a programmed investment solution in which the fund mix becomes more conservative as the investment goal approaches. The equity allocation for a typical 15 to 20 year policy term would be maximum of 80 per cent which glides down gradually to 5 per cent as the maturity of the plan nears. The remaining portion at different periods, would get proportionately allocated to debt asset class.

The Plan also offers flexibility to choose from six investment fund offerings. There are no limits on the number of switches or premium redirection done during the policy term and this does not attract any charges.

The Premiums paid under IDBI Federal Life Insurance Smart Growth Plan may be eligible for deduction under section 80C, and Benefits received under the plan are exempted from Income Tax under section 10(10D) of the Income Tax Act, 1961.

How the Plan Works?

The customer buys Smart Growth Plan with Option 2 – Plus for a policy term of 20 years and pays an annual premium of Rs. 50,000 for years for which the sum assured is Rs. 5,00,000.

The benefits under the plan are as follows:

Death Benefit: In case of unfortunate death at the end of 12th policy year, the customer’s nominee will receive the Death Benefit, as per the table given below:

Maturity Benefit: On survival till the maturity date, the customer will receive the maturity benefit, as per the table given below:

*This illustration is for a healthy 35 years old male/female.

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