Sealed with guaranteed income

Transcription

1 GUARANTEED INCOME INCOME GUARANTEED Sealed with guaranteed income A money back insurance plan to provide guaranteed annual income *Conditions apply.

2 Invest and enjoy these benefits: Pay premiums only for the first 7 years of the policy and get life cover for 14 years 7 Enjoy guaranteed annual payouts irrespective of market conditions Annual payouts ranging from % to % of your premium, paid from the 8th policy year onwards Get comfort with protection offered by Critical Illness Benefit Get tax benefits of Sec 80C and Sec 10(10D) 1

3 Introduction Presenting IDBI Federal Incomesurance Guaranteed Money Back Insurance Plan 7 pay. We don t know what lies in our future. And therefore when we invest, we seek a guarantee. IDBI Federal Incomesurance Guaranteed Money Back Insurance Plan 7 pay (hereinafter referred as Incomesurance 7 pay) is a plan that enables you to stop being concerned of the future and rest assured, since the plan gives you payouts annually. And yes, it s guaranteed! 2

4 Key Benefits of Incomesurance 7 pay Pay premiums only for the first 7 years of the policy and get life cover for 14 years 7 With Incomesurance 7 pay you pay premiums for the short duration of 7 years only and rest assured about your family s financial security with a life cover that remains in force for the complete policy term of 14 years. Annual payouts ranging from % to % of your premium, paid from the 8th policy year onwards You start receiving guaranteed annual payouts starting from the end of the 8th policy year up to the end of 14th policy year. These payouts are expressed as a percentage of your annualized premium (excluding Goods & Service tax and cess as applicable and extra premium) and depend on the premium amount you pay and on your age at policy commencement. The GAP amounts we guarantee are detailed under survival benefits. Enjoy guaranteed annual payouts irrespective of market conditions Take comfort in the protection offered by the Critical illness benefit A key feature of the Incomesurance 7 pay plan is its Critical illness benefit. In an age of growing health concerns and uncertainties, this benefit offers you a financial cushion against a pre-defined list of serious health related conditions. In the unfortunate scenario of the life insured being diagnosed with a critical illness: A lump sum amount of the guaranteed annual pay outs proportionate to the premiums paid, is immediately paid out to help in treatment and other expenses; Plus the life cover continues till the end of the policy term Please refer How Incomesurance 7 pay Works section for complete details. Get tax benefits of 80C and 10(10D) Incomesurance 7 pay also helps you avert taxes eating into your hard-earned money. It gives you tax benefits on premiums paid and benefits received under section 80C and 10(10D) respectively. Please note that tax laws may change from time to time. We urge you to consult your tax advisor for more information. The benefits of this plan are guaranteed and will be paid out to you irrespective of market volatility. 3

5 Eligibility Age at entry (as on last birthday) Min Max 10 years$ 50 years Age at maturity (as on last birthday Min Max 24 years 64 years Premium Min Max `35,000 `20,00,000 Premium payment term Fixed 7 years Policy term Fixed 14 years Premium Payment Frequency Annual $Policies on lives of minors can be taken only by parents / grand-parents. 4

6 How Incomesurance 7 pay works Incomesurance 7 pay is a simple plan with guaranteed benefits, explained below in easy steps: You choose the amount that you would want to invest as premium each year. Survival Benefit You get annual payouts on survival of insured till end of each year starting from the 8th policy year up to the 14th policy year. The Guaranteed Annual Payouts (GAPs) that you receive depend on two factors: The annualized premium (exclusive of Goods & Service tax and cess as applicable and extra premium) that you pay Your age at policy commencement You pay premiums for the first 7 years of your policy only. Enjoy the benefits of the policy 5

7 The GAPs are as detailed below Age at Entry (Last Birthday) Premium < Rs. 1,00,000 Premium Rs. 1,00,000 & <2,00,000 Premium Rs. 2,00, % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % Age at Entry (Last Birthday) Note: Premium < Rs. 1,00,000 Premium Rs. 1,00,000 & <2,00,000 Premium Rs. 2,00, % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % Survival benefits will be paid as GAP on their respective due dates and will not be available as a Lump sum. Illustration: To help you understand this better, let us take the example of Mr. Mohit aged 30 years. Mr. Mohit decides to invest Rs. 1,00,000 per annum in his Incomesurance 7 pay plan. He invests this amount every year for the first 7 years of his policy. From the end of the 8th policy year, he starts receiving his annual guaranteed payout of Rs.1,41,280 every year till the 14th year of his policy. 6

8 Maturity benefit There is no Guaranteed Sum Assured payable on maturity. The last GAP will be made on survival to maturity. Death benefit In the unfortunate case of death of the life insured at any time during the policy term of 14 years, provided the policy is in force and all premiums have been paid in full as and when due, the beneficiary would be paid the death sum assured which would be the highest of: Guaranteed Sum Assured on maturity* 10 times of annualised premium 105% of all premiums paid (including extra premiums and modal loading) Basic Sum Assured (An absolute amount of 10 times premium, including extra premiums and modal loading) Sum of all Guaranteed Annual Payouts (GAP) Survival Benefit or Critical Illness Benefit already paid, if any, will not be deducted from the Death Sum Assured. *There is no guaranteed sum assured payable on maturity. The last GAP payment will be made on survival to maturity. Get Guaranteed Annual Payouts (GAP) for the next 7 years of the policy term Pay premiums for the first 7 years of the policy term Policy Term 14years Life Cover 14years 7

9 Critical illness benefit In case the life insured is diagnosed with a critical illness (from a list of pre-defined critical illness covered under this benefit), a lump sum total of the guaranteed annual payouts, proportional to the premiums received, is paid out immediately to help with the treatment and other expenses. During Premium Paying Term: CI Benefit = GAP x No of premiums paid After Premium Paying Term: CI Benefit = (GAP x No of premiums paid) Sum of GAPs paid till date of claim (if any) No further GAPs will be paid under the policy after the critical illness benefit is paid out. However the life cover continues till the end of the policy term. No further survival benefits are payable. There is a survival period of 30 days from diagnosis for claiming Critical Illness benefit. If policyholder dies during the survival period, critical illness benefit shall not be paid and only death benefit shall be paid. In case Critical Illness is diagnosed in the 3rd policy year (141.28% * Annual Premium) * 3 paid as lump sum Life cover continues till end of policy term. Future premiums are not payable After payout of CI benefit no further Survival benefits are paid Premium payment Term 7 years Policy Term 14 years Life Cover 14 years *The CI benefit payout illustrated above is for an individual aged 30 year and premium of Rs. 1,00,000. Payout as a percent of Annual Premium (exclusive of Goods & Service tax and cess as applicable and extra premium) depends on the premium amount and on the age of the person to be insured at policy commencement. 8

10 The Critical Illnesses covered under this product are : Cancer Of Specified Severity Open Chest CABG (Coronary Artery Bypass Graft) First Heart Attack - Of Specified Severity Stroke Resulting In Permanent Symptoms Kidney Failure Requiring Regular Dialysis Major Organ /Bone Marrow Transplant Multiple Sclerosis With Persisting Symptoms Coma Of Specified Severity Permanent Paralysis Of Limbs For further details on critical illnesses, please refer to Critical Illness Definitions and Exclusions under the Other Features section. 9

11 Other Features Surrendering the policy Incomesurance 7 pay is your investment commitment towards realising your dreams and securing your family financially. But in emergency situations, you can opt to surrender your policy before the end of the policy term. You can surrender your policy at any time after payment of 2 full years premiums. The surrender value of the policy is higher of Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV). Guaranteed Surrender Value (GSV) GSV = (Total Premium paid^ till date of surrender x GSV Factor) Sum of GAPs paid till date of surrender. The GSV will always be non negative. ^including extra premium but excluding Goods & Service tax and cess as applicable. GSV factors are tabulated below for reference: Policy Year GSV factor Policy Year GSV factor Special Surrender Value (SSV): The Company, at its discretion, may also pay a Special Surrender Value which may be higher than the Guaranteed Surrender Value. The SSV is not guaranteed and may be changed at any time, subject to the prior approval of the IRDA. The policy terminates on surrender and no further benefits are payable under the policy. There is no surrender value applicable on a policy once a critical illness claim is paid. Grace period Your Incomesurance 7 pay plan offers you a grace period of 30 days from the date of the first unpaid premium. During the grace period your policy remains in force and benefits are payable. In case of death of the life insured during the grace period, before the premium due is paid, the same shall be deducted from the death benefit payable. If the premium due is not paid within the grace period, the policy shall lapse and have no further value, except if it has acquired any paid-up value % 3 30% 4 50% 5 50% 6 50% 7 50% 8 52% 9 54% 10 57% 11 62% 12 68% 13 74% 14 80% 10

12 Other Features (contd...) Paid-up value (Non forfeiture) Your policy is eligible to acquire a paid-up value only after 2 full years annual premiums have been paid. Thereafter, if you fail to pay any due premium within the grace period, your policy will assume paid-up value with reduced benefits: Reduced GAP - (GAP) * (Number of premiums paid/total number of premiums payable) The reduced GAP will be paid out from end of 8th year to end of 14th year of the policy. Reduced Death Sum Assured - [(Death sum assured) * (Number of premiums paid/total number of premiums payable) In case of death of the life assured during the policy term, the reduced Death sum assured will be paid out to the beneficiary. CI Benefit = (Guaranteed annual payout x No of premiums paid) Sum of GAPs paid (if any) In case of a critical illness claim by the life assured during the policy term, the critical illness benefit will be paid out to the beneficiary. Lapse Revival A policy which has lapsed or acquired paid-up value can be revived subject to: You make an application for revival within 2 years from the due date of the first unpaid premium. You furnish satisfactory evidence of health and satisfy other requirements according to our board approved underwriting policies at that time. You will be charged interest for the arrears in premium. Interest rate shall be set as 3% + yield on 10 year Government security. Based on this, the interest rate shall be set every 6 months. If your policy has acquired a paid-up value then the application for revival must be made before the due date of the first guaranteed annual payout. When a policy is revived after payment of all due premiums complete with interest, the policy is entitled to receive all benefits and the guaranteed annual payouts will be reinstated as per schedule. If you have not revived a lapsed policy, and if the policy has not acquired a paid up value, the premiums already received by us are forfeited and the policy cannot be revived thereafter. During the first 2 policy years, if you fail to pay any due premium before end of the grace period, your policy will lapse and no benefits will be payable. 11

13 Other Features (contd...) Free look period You/Policyholder are entitled to a free look period of 15 days from the date of receipt of the policy document to review the terms and conditions of the policy. In case you do not agree with any of the terms and conditions, you have the option to return the policy to us for cancellation by communicating the same in writing stating the reasons for objections. We will refund you the premium amount after deducting the proportionate premium for the cover provided during that time plus any medical examination cost and stamp duty charges incurred by us in respect of the policy. All the benefits under the policy will stand extinguished immediately on the cancellation of the Policy under the free look. For electronic policies and the policies solicited through Distance Marketing mode*, free-look period of 30 days from the date of receipt of your policy document is applicable. *Distance mode includes every activity of solicitation (including lead generation) and sale of insurance products through the following modes: Voice mode, which includes telephone-calling Short Messaging Service (SMS) Electronic mode which includes and interactive television (DTH) Physical mode which includes direct postal mail, newspaper and magazine inserts Loans You can avail a loan on your Incomesurance 7 pay policy only after the policy acquires a surrender value. The loan you can avail will be from a minimum of Rs.5,000 and limited to 85% of the guaranteed surrender value at the time of application, subject to terms and conditions specified by IDBI Federal from time to time. Exclusion If the life insured, whether sane or insane, commits suicide within 12 months from the date of commencement of the policy or from the date of policy issue whichever is later, 80% of the premiums paid^ will be given as the death benefit. In case of suicide within one year of revival of the plan, the benefit payable will be 80% of premiums paid till death or Surrender value as available on the date of death, whichever is higher. ^exclusive of Goods & Service tax and cess as applicable Please refer to Critical illness section for exclusions applicable for critical illnesses Nomination Nomination will be allowed as per provisions of section 39 of Insurance Act, 1938 as amended from time to time. 12

14 Other Features (contd...) Assignment Goods & Service tax and stamp duty TAX Assignment and transfer of insurance policies will be allowed as per provisions of section 38 of Insurance Act, 1938 as amended from time to time. Goods & Service tax and cess as applicable, will be levied as per the extant laws. For further information on Section 38 and 39 of the Insurance Act, 1938 you may contact your intermediary, or refer our website or refer The Insurance Laws (Amendment) Act, 2015 or as amended from time to time for the relevant sections. 13

15 Critical Illnesses Definitions & Exclusions Cancer Of Specified Severity A malignant tumor characterized by the uncontrolled growth & spread of malignant cells with invasion & destruction of normal tissues. This diagnosis must be supported by histological evidence of malignancy & confirmed by a pathologist. The term cancer includes leukemia, lymphoma and sarcoma. Open Chest CABG (Coronary Artery Bypass Graft) The actual undergoing of open chest surgery for the correction of one or more coronary arteries, which is/are narrowed or blocked, by coronary artery bypass graft (CABG). The diagnosis must be supported by a coronary angiography and the realization of surgery has to be confirmed by a specialist medical practitioner. The following are excluded: Tumors showing the malignant changes of carcinoma in situ & tumor which are histologically described as premalignant or non invasive, including but not limited to: Carcinoma in situ of breasts, cervical dysplasia CIN-1, CIN -2 & CIN-3 Any skin cancer other than invasive malignant melanoma All tumors of the prostate unless histologically classified as having a Gleason score greater than 6 or having progressed to at least clinical TNM classification T2N0M0 Papillary micro - carcinoma of the thyroid less than 1 cm in diameter Chronic lymphocytic leukaemia less than RAI stage 3 Micro - carcinoma of the bladder All tumors in the presence of HIV infection. The following are excluded: Angioplasty and/or any other intra-arterial procedures. Any key-hole or laser surgery. First Heart Attack - Of Specified Severity The first occurrence of myocardial infarction which means the death of a portion of the heart muscle as a result of inadequate blood supply to the relevant area. The diagnosis for this will be evidenced by all of the following criteria: A history of typical clinical symptoms consistent with the diagnosis of Acute Myocardial Infarction (for e.g. typical chest pain). New characteristic electrocardiogram changes. Elevation of infarction specific enzymes, Troponins or other specific biochemical markers. 14

16 Critical Illnesses Definitions & Exclusions (contd...) The following are excluded: Non-ST-segment elevation myocardial infarction (NSTEMI) with elevation of Troponin I or T. Other acute Coronary Syndromes. ` Any type of angina pectoris. Stroke Resulting In Permanent Symptoms Any cerebrovascular incident producing permanent neurological sequela. This includes infarction of brain tissue, thrombosis in an intracranial vessel, haemorrhage and embolisation from an extracranial source. Diagnosis has to be confirmed by a specialist medical practitioner and evidenced by typical clinical symptoms as well as typical findings in CT Scan or MRI of the brain. Evidence of permanent neurological deficit lasting for at least 3 months has to be produced. renal transplantation is carried out. Diagnosis has to be confirmed by a specialist medical practitioner. Major Organ / Bone Marrow Transplant The actual undergoing of a transplant of: One of the following human organs: heart, lung, liver, kidney, pancreas, that resulted from irreversible end-stage failure of the relevant organ, or Human bone marrow using haematopoietic stem cells. The undergoing of a transplant has to be confirmed by a specialist medical practitioner. The following are excluded: Other stem-cell transplants. Where only islets of langerhans are transplanted The following are excluded: Transient ischemic attacks (TIA) Traumatic injury of the brain Vascular disease affecting only the eye or optic nerve or vestibular functions. Kidney Failure Requiring Regular Dialysis End stage renal disease presenting as chronic irreversible failure of both kidneys to function, as a result of which either regular renal dialysis (hemodialysis or peritoneal dialysis) is instituted or Multiple Sclerosis With Persisting Symptoms The definite occurrence of multiple sclerosis. The diagnosis must be supported by all of the following: Investigations including typical MRI and CSF findings, which unequivocally confirm the diagnosis to be multiple sclerosis; There must be current clinical impairment of motor or sensory function, which must have persisted for a continuous period of at least 6 months, and well 15

17 Critical Illnesses Definitions & Exclusions (contd...) documented clinical history of exacerbations and remissions of said symptoms or neurological deficits with atleast two clinically documented episodes atleast one month apart. The following are excluded: Other causes of neurological damage such as SLE and HIV are excluded. Permanent Paralysis Of Limbs Total and irreversible loss of use of two or more limbs as a result of injury or disease of the brain or spinal cord. A specialist medical practitioner must be of the opinion that the paralysis will be permanent with no hope of recovery and must be present for more than 3 months. Coma Of Specified Severity A state of unconsciousness with no reaction or response to external stimuli or internal needs. This diagnosis must be supported by evidence of all of the following: No response to external stimuli continuously for at least 96 hours; Life support measures are necessary to sustain life; and Permanent neurological deficit which must be assessed at least 30 days after the onset of the coma. The condition has to be confirmed by a specialist medical practitioner. The following are excluded: Coma resulting directly from alcohol or drug abuse is excluded. 16

18 Exclusions The benefit will not be payable for any covered critical illnesses under following circumstances: If the insured dies within 30 days of the diagnosis of the covered CI. For any medical condition or medical procedure resulting directly or indirectly from self-inflicted injuries, attempted suicide, while sane or insane; For any medical conditions suffered by the life assured or any medical procedure undergone by the life assured if that medical condition or that medical procedure was caused directly or indirectly by Acquired Immunodeficiency Syndrome (AIDS), AIDS related complex or infection by Human Immunodeficiency Virus (HIV); For any medical conditions suffered by the life assured or any medical procedure undergone by the life assured, if that medical condition or that medical procedure was caused directly or indirectly by any congenital anomaly or defect; For any medical conditions suffered by the life assured or any medical procedure undergone by the life assured, if that medical condition or that medical procedure was caused directly or indirectly by alcohol or drug abuse. Engaging in or taking part in *hazardous activities, including but not limited to, diving or riding or any kind of race; martial arts; hunting; mountaineering; parachuting; bungee-jumping; underwater activities involving the use of breathing apparatus or not; *Hazardous Activities mean any sport or pursuit or hobby, which is potentially dangerous to the Insured Member whether he is trained or not. Participation by the insured person in a criminal or unlawful act with criminal intent. For any medical condition or any medical procedure arising from nuclear contamination; the radioactive, explosive or hazardous nature of nuclear fuel materials or property contaminated by nuclear fuel materials or accident arising from such nature. For any medical condition or any medical procedure arising either as a result of war, invasion, act of foreign enemy, hostilities (whether war be declared or not), armed or unarmed truce, civil war, mutiny, rebellion, revolution, insurrection, military or usurped power, riot or civil commotion, strikes or participation in any naval, military or air force operation during peace time. For any medical condition or any medical procedure arising from participation by the insured person in any flying activity, except as a bona fide, fare-paying passenger and aviation industry employee like pilot or cabin crew of a recognized airline on regular routes and on a scheduled timetable. 17

19 Other Terms Explained Independent Medical practitioner: An independent Medical practitioner is a person who holds a valid registration from the medical council of any state of India and is thereby entitled to practice medicine within its jurisdiction; and is acting within the scope and jurisdiction of his license. Pre-existing disease: Any condition, ailment or injury or related condition(s) for which policyholder had signs or symptoms, and / or were diagnosed, and / or received medical advice / treatment within 48 months to prior to the policy issued or Revived by the insurer. No claim shall be repudiated after 4 years from the policy inception or Revival on account of pre-existing diseases disclosed or discovered through medical examination at underwriting/revival. Policies issued under Married Women s Property Act Under Section 6 of the Married Women s Property Act, 1874 a married man can take an insurance policy on his own life and express it to be for the benefit of his wife or children. When such intent is expressed on the face of the policy, it shall be deemed to be a trust for the benefit of the named beneficiaries (your wife or children) and it shall not be subject to the control of the husband, or his creditors or form part of his estate. The Act also provides that nothing contained in the provision shall operate to destroy or impede the right of any creditor to be paid out of the proceeds of any policy of assurance which may have been affected with intent to defraud creditors. You can ask for an endorsement of your Incomesurance Plan for the benefit of your wife or children or any combination of them under the Married Women s Property Act, Once endorsed, the policy will be exclusively for the benefit of the named beneficiaries. Vesting rights under a child policy Where minor lives are covered, risk commences on the policy commencement date. Further, on attainment of his\her majority, the policy vests in the name of the insured person. In the event of the death of the policy owner of a child policy, the legal guardian of the child shall act as the policy owner until the child becomes a major. In such case the legal guardian shall then have the following options Continue to hold the policy, or Surrender the policy, provided the lock in period of 5 years has been completed. Assignment will not be permitted in child policies during the time that the life insured is a minor. 18

20 Statutory information Prohibition of rebate Policy document The Insurance Act, 1938, prohibits an agent or any other person from passing any portion of his commission to the customer whether as incentive or rebate of the premium. Section 41 of the Act states: (1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the Policy, nor shall any person taking out or renewing or continuing a policy, accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the Insurer. (2) Any person making default in complying with the provisions of this Section shall be liable for a penalty which may extend to ten lakh rupees. This brochure gives only the salient features of the IDBI Federal Incomesurance Guaranteed Money Back Insurance Plan 7 pay. It uses easy-to-understand language to explain the features. Your plan is governed only by the full legal terms, conditions and exclusions as contained in the policy document. IDBI Federal Incomesurance Guaranteed Money Back Insurance Plan 7 Pay is non-linked, non-participating money back plan and no benefits other than those indicated in this brochure are payable. This product does not participate in the profits of the Company. Substandard lives will be charged extra premium. This product is underwritten by IDBI Federal Life Insurance Company Limited (IRDAI Regn. No 135; Corporate Identity Number (CIN) U66010MH2007PLC167164) having its registered office at: 22nd Floor, A Wing, Marathon Futurex, N. M. Joshi Marg, Lower Parel - East, Mumbai Product UIN 135N042V01. Trade Logo displayed above belongs to IDBI Bank Limited, The Federal Bank Limited and Ageas International Insurance N. V. and used by IDBI Federal Life Insurance Company Limited under license from respective partners. Tax Benefits are as per the Income Tax Act, 1961 and are subject to changes in the tax from time to time. Ref. No.: 13300/IGMBI7P/ENG/Print-PB/Jul16 TM - IDBI Federal Life Insurance Co Ltd has applied for the registration of Incomesurance as trademark with the Trademark Registry. 19

21 How to contact us Branches Visit or call any branch of IDBI Bank, Federal Bank, or IDBI Federal Life Insurance Co Ltd. For the list of branches, please visit SMS SMS INCOME to We will call you back. + SMS charges upto Rs. 3/- apply. Phone Call our nation-wide toll-free number at any time from Monday to Saturday between 8 am to 8 pm Write Write to Customer Service Desk, IDBI Federal Life Insurance Company Limited, 22 nd Floor, A Wing, Marathon Futurex, N. M. Joshi Marg, Lower Parel - East, Mumbai Website Visit our website us at support@idbifederal.com BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/FRADULENT OFFERS IRDAI clarifies to public that: IRDAI or its officials do not involve in activities like sale of any kind of insurance or financial products, nor invest premiums. IRDAI does not announce any bonus. Public receiving such phone calls are requested to lodge a police complaint along with details of the phone call, number. 20

22