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IDBI Federal Term Insurance

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IDBI Federal Term Insurance Plans are basic life cover plans offered by IDBI Federal Life Insurance Company. The IDBI Term Plan secures the financial needs of a family in case of the life insured’s death. Purchasing an IDBI Federal Term Insurance plan equips the policyholder with a tool to protect his/ her family from unfavourable and unforeseen circumstances. The life coverage and financial stability benefits offered under the IDBI Federal Term plans are available at budget-friendly rates.

Why Choose IDBI Federal Term Insurance?

IDBI Term plan has many benefits that make it a popular choice among people. Some of these benefits are listed below:

  • The company offers discounts on the premium if the policyholder selects a higher sum assured
  • For women policyholders, there are specific discounts that are running almost all the time
  • Policyholders have the option to choose the premium payment frequency as per their convenience
  • The Term Plans offered are varied and diverse that suit the major needs of people
  • IDBI Term Insurance offers accidental death benefit in addition to life coverage to its customers
  • The premium paid under the Term Plans is eligible for tax benefit under Section 80C and 10 (10) of the Indian Income Tax Act
  • The easily accessible customer support and service team offer an unbeatable pre and post-sales service

IDBI Federal Term Insurance Plans Types

There are three main types of Term Plans offered by IDBI Federal Life Insurance Co Ltd. These are:

  • Income protect Plan
  • iSurance Flexi Term Plan
  • Termsurance Life Protection Insurance Plan

Income Protect IDBI Federal Term Plan

The Income Protect Term Plan is a non-participating and non-linked Term Plan that offers financial security with guaranteed monthly income.

Let us take a look at different kinds of plan options offered by AEGON Life Insurance.

Features and Benefits of Income Protect Plan

Term Insurance plans are the most popular plans as it gives death benefits to the family of the insured. Aegon Life Insurance offers 6 different types of plan options that provide various benefits.

Death Benefit: The death benefit under the Income Protect Term plan is disbursed in the following manner subject to the policy is active, and all policy premiums paid on time.

    • A lump-sum benefit equal to 12 times the monthly income paid on the life insured’s death
    • Or a monthly income paid for the remaining policy term for a minimum period of 5 years calculated on the life insured’s death date. The monthly income increases at a rate of 5% annually even after the policy Term if the Monthly Income Benefit is paid after the completion of the policy term 

The death benefit in any of the cases mentioned above shall not be below the greater of the following options:

    • 105% of the accumulated premiums paid till the death date
    • Ten times the amount of Annualised Premium
    • Any amount guaranteed for payment on the death of the insured
    • Sum Assured on Maturity

Tax Benefit: Premiums paid under Term Plans are eligible for Tax Benefit under Section 80C and 10 (10D) of the Indian Income Tax Act 1961.

Maturity Benefit: This plan does not offer any Maturity Benefit as it is a Term Plan.

Grace period: In the case of the Term Plan, the grace period offered is 15 days and 30 days, respectively, for the monthly and yearly premium payment mode policies.

Policy lapse: If the policyholder fails to make the policy payment on the due date or during the grace period, the policy gets lapsed. In such a scenario, the benefits of policy become invalid. 

Free Look Period: A free look period of 15 days is entitled to policyholders during which the policyholder is free to examine the policy and return it for cancellation in case the terms and conditions of policy do not seem acceptable. The free look period of 15 days is calculated from the date of receipt of the policy document. The insurer refunds the premium amount to the policyholder after recovering the costs incurred on stamp duty, medical examination, etc. The free look period is 30 days for policies bought through distance mode.

Eligibility to purchase the Income Protect IDBI Federal Term Plan

Minimum entry Age 25 years
Maximum entry Age 60 years
Maximum Age of the Life Insured at Policy Maturity 70 Years
Policy Term 10-30 years
Premium Payment Period 10/ 15 /20 years
Premium Payment Frequency Monthly or Yearly

iSurance Flexi IDBI Federal Term Plan

The iSurance Flexi term Plan is a unique Term Plan that offers the policyholder, an inbuilt conversion facility. The basic aim of this plan is to offer financial security in case of life insured’s death insured or the life insured getting some terminal illness.

Features and Benefits of the iSurance Flexi Term Plan

Some of the salient features and key benefits of the iSurance Flexi Term Plan offered by IDBI are listed below:

    • People following a healthy lifestyle are rewarded under this policy
    • The life insured can get a life cover at a budget-friendly premium rate
    • Women policyholders are offered discounts
    • The policy includes an option to select Accidental Death Rider
    • Tax benefit on the policy premium under Section 80C and 10(10D)
    • The death benefit is paid as a lump-sum amount to the beneficiary/nominee in case of life insured’s death within the policy tenure
    • There is no maturity benefit under this policy plan
    • An innovative feature that works as a benefit for the policyholder is the conversion option. Under this option, a pay-out is paid to the life insured in the event of getting a medical ailment that is mentioned in the critical illnesses list
    • For a life insured who is below 65 years of age, the conversion option can be availed in case of the following medical ailments-Heart Attack, Cancer, or Stroke
    • Or under specific conditions such as a policy term of 5 years or more, or the policy is renewed, issued, or reinstated a minimum 180 days before availing the conversion option
    • The policyholder can buy the optional accidental rider available under the iSurance Flexi Term Plan. Under this rider, the insurer pays the insured an accidental sum assured along with the sum assured of policy in the event of the accidental death of the insured

Eligibility to Purchase iSurance Flexi Term Plan

Entry Age Min. 18 years and Max. 60 years
Policy Term Age Min. 10 years and Max. 62 years
Maturity Age Max. 80 years
Premium Payment Mode Regular (same as policy period)
Premium Payment Frequency Yearly, Half-yearly, Quarterly, Monthly
Min Basic Sum Assured Rs 50 Lakh

Secured Income IDBI Federal TermPlan

This term plan is a participating, non-linked insurance plan that offers financial security for ten years. Under a Secured Income Plan, the policyholder receives a safe income for ten years after saving money for ten years. Besides, the term plan offers coverage to the family of the life insured in case of death or disablement of the life insured.

Features and Benefits of the Secured Income Plan

Secured Income IDBI Federal Term Plan comes packed with different features and benefits. They are as follows:

    • In the event of a permanent and total disability, the policyholder starts getting monthly income (which is 1% of the sum assured) until the completion of premium payment tenure
    • All subsequent premiums of the policyholder are waived
    • The income benefit paid over ten years is inclusive of the reversionary bonus, and sum assured
    • The death benefit is categorized in the following two ways:
    • If the policyholder dies during the premium payment tenure, the nominee is paid the reversionary bonus, the sum assured, and interim bonus (if declared)
    • If the policyholder dies after the completion of the premium payment term and before the completion of the policy term, the nominee is paid the simple reversionary bonus, and sum assured minus the terminal bonus and paid a reversionary bonus
    • The policy is terminated after the payment of death benefits
    • The sum assured paid at the death of the policyholder is the highest among the guaranteed sum assured, ten times the annualized policy premium, and the sum assured at maturity
    • The maturity benefits are applicable if the policyholder outlives the policy tenure
    • The policyholder is eligible for the maturity benefit if all the policy premiums have been paid timely with the complete amount
    • Any applicable terminal Bonus of policy is paid with the final payment of the income benefit

Eligibility to Purchase the Secured Income Plan

 Parameters Eligibility
Minimum age at entry 8 years
Maximum age at entry 50 years
Maximum age at maturity 70 years
Policy term 20 years (fixed)
Premium Paying Term 10 years
Minimum Premium amount Rs.30,000
Premium payment mode Annually

Inclusions in the IDBI Federal Term Plan

IDBI Federal Term Plans have the following set of inclusions:

  • The major inclusion of an IDBI Federal Term Insurance plan is the financial coverage offered to the family of the life insured along with a monthly income (in some cases)
  • The family gets the death benefit and a monthly income, as per the option selected
  • The life insured, under certain extreme medical conditions (critical illness) has the option to withdraw the death benefit (conversion option) any time before the age of 65 years and five years before the date of maturity of the policy

Exclusions in the IDBI Federal Term Plans

Certain cases are excluded from the purview of the IDBI Federal Term policy.  Any claim that is presented under any of these categories is rejected.

  • Suicide

    In the event of the life insured committing suicide in the policy term’s first year, 80% of the premium amount is refunded to the nominee.

  • Accidental Death

    Accidental death due to any of the following reasons is excluded from any kind of claim settlement:

    • War, invasion, terrorism, civil war, martial law, civil commotion, or revolution
    • Service as a police officer, or armed forces of a nation of war
    • Attempt to suicide, or any kind of self-injury irrespective of the life insured being medically insane or sane
    • Abuse of drugs, alcohol, psychotropic substances, or narcotics
    • Participation in any industrial dispute, war, strike, invasion, nuclear reaction, riot, chemical, or biological contamination
    • Any kind of total or partial disability caused due to participation in dangerous activities such as racing, mountaineering, bungee jumping, hunting, etc.   

How to File a Claim for an IDBI Federal Term Insurance Plan?

Filing a claim for an IDBI Federal Term Insurance plan is an easy and convenient process. The steps involved in the claim process are mentioned below:

  • Intimation

    The first step in the claim process is to claim intimation:

      • Under this step, the nominee of the life insured intimates PaisaWiki regarding the death of the insured. This involves submitting a dully-filled claim form and all relevant documents at the nearest branch office
      • Utmost care must be taken to ensure the correct claim form is submitted with the insurer
      • Once the claim form and documents are submitted, the insurer provides an acknowledgment to the life insured
  • Documents required with the claim form of an IDBI Federal Term Insurance Plan

    The following documents need to be submitted with the claim form:

    • Letter of intimation
    • Format for Death claim
    • Details of the nominee’s Bank account
    • Original death certificate or attested copies of the death certificate
    • Original Term Insurance policy bond
    • Attested copies of the address and id proof of the nominee
    • Cancelled cheque from the bank account of the nominee
    • Medical history of the life insured at death and records of any past ailment of the life insured
  • Scrutinize the Claim and Final Decision

    Once the claim is received, we intimate the nominee for any additional requirement. The claim department carefully analyses the claim for its genuity and decides for the claim settlement.

  • Payment of the Fund Value

    Once the claim has been properly analysed and checked, the sum assured, in case of a death claim, is paid to the nominee.

  • Claim Settlement payment of the IDBI Federal Term Plan

    The final settlement of the claim is done after receiving all mandatory documents along with the claim form. After a complete and thorough verification of the documents and applicable riders (if any), the funds are transferred to the nominee’s account. The claim settlement of the IDBI Federal Term Insurance policy is completed within eight working days calculated from the date of receipt of the claim form and supporting documents. A faster settlement of the claim amount is done by transferring the funds to the nominee through NEFT (National Electronic Fund Transfer). If, due to any reason the NEFT transfer fails, the claim amount is sent via cheque at the nominee's address.

How to Renew the IDBI Federal Term Policy?

The renewal process of an IDBI Federal Term Insurance plan is quite simple. The policyholder needs to visit PaisaWiki website and pay the policy premium. In case the policyholder owns a paper policy, he/ she can convert the policy into an e policy by submitting e-Policy Conversion Form and pay all subsequent policy renewal premiums online.

How to Buy IDBI Federal Term Insurance?

Customers can visit PaisaWiki website, compare plans, features, benefits, and costs and purchase the online plan by making an online payment. 

FAQs

  • Q: What are the various modes of payment for an IDBI Federal Term Insurance policy premium?

    Ans: The premium payment for the Policy can be made through any of the following modes available:
    • Online by visiting PaisaWiki website and entering the date of birth and policy number
    • Through ECS facility
    • Cheque
    • Making payment through the insurance advisor
    • Making payment through any of the branches of IDBI or Federal Bank
  • Q: How can the status of an IDBI Federal term plan be checked?

    Ans: The current status of the IDBI Federal term plan can be checked through their website by entering the policy number and other relevant details of the policy.
  • Q: Is it possible to cancel an IDBI Federal Term Insurance Policy?

    Ans: Yes, an IDBI Federal Term Insurance Plan can be cancelled by submitting the surrender form and other relevant documents at the branch office of the insurer. The policy refund is credited to the policyholder’s account after verifying all documents and policy stands cancelled.
  • Q: What are the documents needed to surrender Federal Term Plan?

    Ans: The following documents are needed at the time of surrendering an IDBI Federal Term Plan:
    • Duly filled surrender Form
    • Policy Document, if a Policy document is not available, provide an indemnity bond
    • Statement of account/Cancelled cheque or a bank attested copy of the passbook from the account of the policyholder
    • If the cheque has ‘New Account’ mentioned, a passbook or bank statement is required
    • Self-attested copy of the pan card
    • In case of a change of residential status from non-resident to resident Indian, the customer must provide copies of the passport with the date of arrival and date of exit stamps
    • For a non-resident customer, the insurer needs a bank confirmation stating the source of premium payment as the NRI account of the account
  • Q: Under what reasons can IDBI Term Insurance policy claims are rejected?

    Ans: An IDBI Term Insurance Policy claim can get rejected under the following circumstances
    • If the loss during the incidence is not covered under the policy coverage
    • If the date of policy lapse and the unfortunate event is the same
    • If the incident leading to loss is a part of the exclusions, the claim gets rejected
  • Q: What documents need to be provided when buying an IDBI Federal Term Insurance Policy?

    Ans: The following documents are to be provided when purchasing an IDBI Federal Term Insurance Policy:
    • Proof of employment or income
    • Age proof
    • Education proof
    • Permanent and correspondence proof of residence
    • Identity proof
    • Pan card copy
    • Photograph
  • Q: What is the Claim Guarantee offered by DBI Federal?

    Ans: The IDBI Federal Life Insurance takes pride in its ‘8-day Claim Guarantee’ service that aims at providing a quick, smooth, and hassle-free claim settlement to the nominee. As per this guarantee, the claims received by the insurer are settled within eight working days and, IDBI Federal Insurance pays interest at the rate of 8% per annum for each day over the eight-day TAT for claim settlement. The eight working days are calculated from the date the insurer receives the claim form and documents.

    However, this Claim Guarantee does not apply in the following cases:

    • Death claims that are received within three years from the date of issuance/ revival/commencement of policy or deletion/ addition of any policy rider
    • Death claims that the insurer feels need further investigation
  • Q: What can the life insured do if the nominee dies within the period of policy tenure?

    Ans: In case of the death of the nominee during the policy term, the life insured must nominate some other person as a nominee of the Term Plan under the Insurance Act, 1938.
  • Q: What happens to the IDBI Federal Term plan if the nominee and Life Assured die in the same unfortunate event or the term plan has no nomination on the insured’s death?

    Ans: Such a situation is known as ‘Open title.' Under such a situation, the insurer requires a succession certificate issued by the court or the evidence of title. The succession certificate, in this case, must have specific orders for the disbursement of the policy amount. In the case of the life insured having a Will, the insurer would need a copy of the will along with probate of the Will.
  • Q: What is referred by a Death Claim?

    Ans: When a life insured expires within the policy term, or before the policy maturity date, the policy proceeds, and benefits are paid to the nominee under the claim settlement of the policy. This claim is referred to as Death claim.
  • Q: Within how much time should a claim be intimated to IDBI federal Insurance?

    Ans: In the event of the unfortunate death of the insured, the intimation of the claim must be done in the least possible time from the insured’s death.
  • Q: How can a lapsed policy be revived?

    Ans: A lapsed policy can be revived by making online payment of policy premiums using any of the payment modes available or by visiting any of the branch offices.
Written By: Paisawiki - Updated: 22 September 2020