IDBI Federal Wealth Gain Insurance Plan
IDBI Federal Wealth Gain Plan is an investment plan that comes with the benefits of a life cover. The plan offers 8 fund options and 2 investment strategies namely Leave-it-to-us and Do-it-yourself to help you grow your fund with a long-term perspective. If the life assured gets a total and permanent disability during the policy term then the insurer waives off all the premium and allows the life cover to remain in force till the end of the policy tenure.
The plan rewards you for staying invested in it by way of loyalty additions at the end of the 10th policy year and thereafter every 5th year. Partial withdrawals can be made after the completion of a lock-in period of 5 years. The plan also offers an optional Systematic Allocator facility which makes the fund mix more conservative as you approach your financial goal. Also, you can switch between the funds any number of times for free during the policy year to keep the fund allocation in line with your changing financial needs.
Best Features of IDBI Federal Wealth Gain Insurance Plan
The best features of IDBI Federal Wealth Gain Insurance Plan are as follows:
- Fund Options- The plan offers 8 distinctive fund options matching different investment styles risk appetites.
- Loyal Additions- Loyal additions equivalent to 1% of the average fund value of the last 36 months preceding the addition date, are made to the fund value at the end of 10th policy year and thereafter every 5th policy year.
- Investment Strategies - There are 2 investment strategies under the plan namely Leave-it-to-us and Do-it-yourself.
- Systematic Allocator Facility- This facility balances the growth and safety on the investment as the policy reaches maturity.
- Fund Switching- The plan allows you to switch the fund options unlimited times free of charge during a policy term.
- Partial Withdrawals- Partial withdrawals can be made after the end of lock-in period of the first 5 years to meet unanticipated financial requirements.
- Policy Revival- The revival of a discontinued policy can be done within 3 years from the date of the first unpaid premium.
Benefits of IDBI Federal Wealth Gain Insurance Plan
IDBI Federal Wealth Gain Insurance Plan offers various benefits, which are as follows:
- Death Benefit
In case of untimely demise of the life assured during the policy term, the highest of the following is paid to the nominee as the death benefit -
- Death Sum Assured
- 105% of the all premiums paid till the date of death
- Fund value
- Maturity Benefit
If the life assured survives till the maturity date of the policy, the fund value on the maturity date along with the loyalty additions is payable to the life assured. After the payment of the maturity benefit, the policy terminates and no further benefits remain in arrears.
- Premium Waiver Benefit on Disability
In case the life assured gets total and permanent disability, the insurance company pays the remaining premiums on behalf of the life assured. The life cover and the guaranteed loyalty additions continue as before. However, this benefit is payable only if the disability occurs within 180 days of an accident or illness.
IDBI Federal Wealth Gain Insurance Plan Eligibility
Following are the eligibility conditions to become an investor under the plan -
| Eligibility Criteria For IDBI Federal Wealth Gain Insurance Plan | |
| Minimum Entry Age | 5 Years |
| Maximum Entry Age | 60 Years |
| Minimum Maturity Age | 18 Years |
| Maximum Maturity Age | 74 Years |
| Policy Term | 10, 15, or 20 Years |
| Premium Payment Term (PPT) | For Ages Below 50 Years: 5, 10, 15, 20 Years For Age 50 Years and Above: 10, 15, 20 Years |
| Premium Payment Frequency | Monthly and Annually |
| Minimum Premium Amount | Monthly: INR 2,500 Yearly: INR 30,000 |
| Maximum Premium Amount | PPT Premium Amount 5 Months / 10 Months INR 83,000 Per Month 15 Months / 20 Months INR 50,000 Per Month 5 Years / 10 Years INR 10 Lakh Per Annum 15 Years / 20 Years INR 6 Lakh Per Annum |
IDBI Federal Wealth Gain Insurance Plan Fund Options
You can choose to invest your hard-earned money in the following fund options -
| Fund Name | Asset Class | Risk and Return Rating | ||
| Equity and Equity Related Securities | Fixed Income | Money Market | ||
Fund Composition | ||||
| Equity Growth Fund | 50%-100% | - | 0%-50% | High |
| Midcap Fund | Mid-cap Stocks-50 – 100% Large-cap Stocks-0 – 50% | - | 0%– 50% | High |
| Bond Fund | - | 20% – 100% | 0%-80% | Moderate |
| Income Fund | - | 25%-100% | 0%-75% | Low |
| Pure Fund | 80% – 100% | - | 0%-20% | High |
| Aggressive Asset Allocator Fund | 50%-100% | 0%-50% | 0%-50% | High |
| Moderate Asset Allocator Fund | 0%-50% | 50%-100% | 0%-50% | High |
| Cautious Asset Allocator Fund | 0%-25% | 75%-100% | 0%-25% | Moderate |
The plan provides the following 2 investment strategies -
- Leave-it-to-us
As the name suggests, under this strategy the insurer manages your funds completely on your behalf as per the risk level chosen by you. Under this option, 3 risk levels namely Cautious, Moderate and Aggressive are given to the investor for allocating the funds.
2. Do-it-yourself
This option allows you to manage the premium allocation and redirection yourself based on your risk appetite and investment decisions.
IDBI Federal Wealth Gain Insurance Plan Review
IDBI Federal Wealth Gain Insurance Plan is an affordable investment plan which provides life cover along with premium waiver benefit in the unfortunate event of total and permanent disability of the life assured. With 2 investment strategies and 8 different fund options, this ULIP stands out among its counterparts. This plan also offers you an optional Systematic Allocator facility which helps you protect your savings from market volatility by maintaining a conservative approach near plan maturity.
The plan further boosts your investment by providing loyalty additions at the end of 10th policy year and every 5th policy year thereafter. The plan also takes care of your liquidity requirements by providing for partial withdrawals and unlimited free fund switches. People looking for a long-term safe investment solution can consider choosing this plan.
IDBI Federal Wealth Gain Insurance Plan FAQs
1. What is the minimum amount allowed for making a partial withdrawal?
You can make a partial withdrawal after the end of the lock-in period of the first 5 years subject to a minimum of INR 10,000. However, please note that after such partial withdrawal, the fund value cannot be less than 1 year’s regular annual premium.
2. Are surrender charges applicable under the plan?
If the policy is surrendered before the end of the lock-in period, the following charges are applicable:
Policy Year in Which the Policy is Discontinued Discontinuance Charge for Premium above INR 25,000 1
6% of AP/FV * subject to a maximum of INR 6,000. 2
4% of AP/FV * subject to a maximum of INR 5,000. 3
3% of AP/FV * subject to a maximum of INR 4,000. 4
2% of AP/FV * subject to a maximum of INR 2,000. 5 onwards
Nil * annual premium or fund value (whichever is lower)
3. Is there a grace period under the IDBI Federal Wealth Gain Insurance Plan?
Yes, a grace period of 30 days will be given to you to make any due premium payment. During these 30 days, the policy remains active and the benefits shall be payable to you without any disturbance.
4. Will I be charged for switching my fund options multiple times?
No, you will not be levied any switching charges for changing the fund option anytime during the policy term.
5. Does partial withdrawals affect death benefit?
The death benefit will decrease by partial withdrawals made in the preceding 2 years from the date of death of the life assured.