Idbi wealthsurance-premium


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Idbi wealthsurance-premium ULIP plan with Single Premium

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Idbi wealthsurance-premium

  1. 1. Wealthsurance Premier Insurance ULIP Plan A tutorial to Wealthsurance Premier Insurance PlanThis tutorial can be used to understand Overview, Benefits of the plan.The author has studied the plan, and provided some recommendation.Appreciate reading through and get an understanding of the productand provide you with enough information in making decision to buy.All comments and queries should be addressed
  2. 2. Wealthsurance Premier Insurance ULIP PlanHow does the plan work?The Single Premium (SP) paid by you, after deducting the Premium Allocation Charge is invested in theFund(s) as chosen. Wealthsurance Premier gives you (a) Investment Account (b) Insurance Account.Investment AccountThe premiums you pay are invested post deduction of a premium allocation charge into the investmentoptions you choose, in the proportion that you specify. IDBI Federal InvestmentBasket contains all theinvestment options we offer. The balance in your Investment Account reflects the wealth built over timefrom your premium contributions and the returns from he investment options chosen by you.Insurance AccountYou can also choose any of the insurance benefits offered under IDBI Federal InsuranceBasket. You pay foronly those benefits you choose and the charges are deducted from your Investment Account.Self-managed optionA. Assured Return Options Investment options that give assured returns for those who prefer to get fixed or floating rate of return on their investment.B. Dynamic Guaranteed Options Investment options which invest in equity while guaranteeing a minimum Net Asset Value, on the specified maturity date. A part of the money is invested in stock markets and your returns depend upon the market performanceC. Market Fund Options A range of funds that invest in stocks, bonds and money market. The returns on these funds are dependent upon the market performance.Expert managed optionA. Asset Allocator Options
  3. 3. Wealthsurance Premier Insurance ULIP Plan Key BenefitsConvenient single premium option : You need not change your savings habit for your wealth plan. You canstart your Wealthsurance Premier with just one premium and enjoy the benefit of long term wealth building under thecover of Life Insurance.Comprehensive wealth management : Flexibility to invest across a wide range of funds according to yourrisk-return profile.Manage your investments : Switch amongst investment options any time and manage your portfolio, free ofcharges and taxes.Withdraw funds in case of need : You can make withdrawals from the plan or surrenderit anytime after the first five years.Flexibility to choose the insurance benefits you need : You can choose the amount of life insurancebenefit you need.Get tax benefits on contributions and benefits.Your wealth plan can be insured against unforeseen events.Create exclusive funds for loved ones : You can ask for endorsement of your Wealthsurance Premier Planfor the benefit of your wife or children or any combination of them under the MarriedWomen’s Property Act. You can also indicate the percentage share of each of them in the plan. Once endorsed, the plan willbe exclusively for the benefit of the named beneficiaries.Change your plan if your needs change: You can make changes to your plan if your needs change. You cancontribute additional premiums. You can change the mix of your investment options by making switches.The InvestmentBasket (This is the Investment account) + The Protective InsuranceBasket(Insurance Account)
  4. 4. Wealthsurance Premier Insurance ULIP Plan Eligibility CriteriaAge at Entry 18 years to 70 years. You can take this plan for your Kid also.Plan Type Single Premium with Top-Up PremiumPolicy Term Minimum 5 years, Maximum 75 YearsPremium Range Minimum (in Rs.) : 5,00,000 Maximum (in Rs.) : No Limit. Also there is option of Top-up Premium which can be added every yearSum Assured The minimum sum insured depends upon your age at entry.Range If you are less than 45 years old: The minimum sum insured is 1.25 times the single premium amount. If you are equal to or greater than 45 years old: The minimum sum insured is 1.1 times the single premium amount.Suicide Commits suicide, within one year from the date of issue of the Policy, the Policy shall beExclusion void. In such event, the Fund Value, shall be payable and all benefits of Policy will cease.Death Benefit Death benefit is the higher of the following two amounts. (a) Sum insured or (b) The fund value in your Investment Account. Also, your death benefit will be at least 105% of total premiums paid (including Top-up premiums) reduced to the extent of partial withdrawals. Upon payment of death benefit, your Wealthsurance Premier Plan is terminated.Optional 1. Major Diseases Benefit – Covers 17 critical Illness.Insurance 2. Hospital Cash BenefitBenefits 3. Accidental Death Benefit – Maximum up to Rs 50 lakhs. 4. Accidental Death and Disablement Benefit Chose any or all of the benefits. These are Riders.
  5. 5. Wealthsurance Premier Insurance ULIP Plan Withdrawals and SurrenderPartial Withdrawals No withdrawals are permitted in the first five policy years. After five years, withdrawals are allowed subject to: a. Minimum of Rs. 10,000 per withdrawal b. The balance fund value post withdrawal should be at least Rs. 2,50,000 c. Top-up premiums paid cannot be withdrawn for five years from the date of the Top-up d. No withdrawals are permitted if the insured person is below 18 years You can make partial withdrawals any time and as many times as you desire free of charges.Surrender When you wish to terminate your Wealthsurance Premier Plan before maturity, you can surrender your plan. You cannot surrender your plan in the first five years from commencement of the plan. After completion of five years from commencement, you may surrender your plan. As there is no surrender charge after completion of five years, we will pay you the entire fund value as on date of surrenderCharges There are no charges for partial withdrawals. However, IDBI Federal reserves the right to introduce a partial withdrawal charge not exceeding 7.5% of the amount withdrawn, with the prior approval of the IRDA.Reduction in death If the insured person dies before the age of 60 years, the Sum Insured will be reduced by any partialbenefit withdrawals made in the preceding two years. After the age of 60 years of the insured person, the Sum Insured will be reduced by the total amount of all partial withdrawals made after age 58 years onwards. In both cases mortality charges would also be reduced corresponding to the reduced Sum Insured.Maturity benefit Maturity benefit is equal to the fund value in your Investment Account on the date of maturity.Settlement option If you so choose, you need not withdraw the entire Maturity Benefit on the maturity date. You can withdraw it in installments as you choose, within five years from the maturity date. During this period, your fund value will continue to participate in the performance of unit-linked funds as chosen by you and you will also bear the investment risk as before except specific guarantees.
  6. 6. Wealthsurance Premier Insurance ULIP Plan Fund OptionsMonthly Guaranteed Risk : LOW. The purpose of the Monthly Guaranteed Interest Fund is to provide a minimumInterest Fund guaranteed rate of interest to the investors from out of the investment income of the underlying portfolio. A fund management charge of 1.25% p.a. plus an investment guarantee charge of 0.15% p.a. will be appropriated while computing the Net Asset Value of the Monthly Guaranteed Interest Fund.Guaranteed Return Risk : LOW. Aim to generate a fixed return by investing in fixed income instruments withFunds maturities close to the maturity date of the fund and follow a buy-and-hold strategy. A fund management charge of 1.25% p.a. plus an investment guarantee charge of 0.25% p.a. will be appropriated while computing the Net Asset Value of the Guaranteed Return Funds.Dynamic Guaranteed Risk: Medium. The funds will implement ‘ratcheting’ strategy as decided by IDBI Federal. UnderFunds ‘ratcheting’, when the Dynamic Guaranteed Funds have made returns over and above the amount needed to provide for guaranteed value, the returns may be ‘locked-in’ by investing in debt A fund management charge of 1.35% p.a. plus an investment guarantee charge of 0.60% p.a. will be appropriated while computing the NAVMarket Fund Options Equity Growth Fund : Risk : High Nifty Index Fund Risk : High Midcap Fund Risk : High Pure Fund Risk : High Bond Fund Risk: Medium Income Fund Risk: Low Liquid Fund Risk: LowAsset Allocator Funds IDBI Fund managers choose how much to invest in stocks, bonds or money market, depending upon their view on the markets.
  7. 7. Wealthsurance Premier Insurance ULIP Plan Charges for the PlanPolicy In the first 5 years the policy administration charge is a percentage of the single premium and is deducted at the beginning of each month. Rs. 5,00,000 - 9,99,999 0.05%Administration The monthly charge for policy administration is as follows.Charges Rs. 10,00,000 - 24,99,999 0.02% Rs. 25,00,000 and above Nil After 5 years the policy administration charge is a flat charge of Rs. 60 per month, deducted at beginning of policy year. For premiums above Rs. 25,00,000 there is no policy administration charge.Mortality Charges To meet the cost of life cover, mortality charges are deducted at the beginning of each month by cancellation of units in your investment account. Mortality charges are calculated on the sum at risk which is defined as sum insured minus fund value.Fund Management Fund Management Charges are 1.35% p.a. for Equity Growth Fund, Nifty Index Fund, Midcap Fund, Pure Fund,Charges (FMC) Bond Fund, Income Fund and Liquid Fund. For Asset Allocator Funds, there are no additional charges for fund management other than fund management charges for the underlying funds. We reserve the right to increase charges for any fund by up to 0.75% p.a., with prior approval of the IRDAGuarantee Charges All Fund types which guarantee have a charge. Refer to the previous slide, which has Fund Informations.Discontinuance Charges No discontinuance charges are applicableMortality Charges Mortality charges are deducted on the 1st business day of each Policy Month from Fund Value by way of cancellation of units. Mortality charges will be based on your age and Sum at Risk at the time of charge deduction.Rider Charges Charges for all the 4 Riders available.Switching Charge A charge of Rs. 100 is applicable for every switch, in excess of two free switches in the same Policy Year.Partial Withdrawal There are no charges for partial withdrawals.Charges
  8. 8. Wealthsurance Premier Insurance ULIP Plan RecommendationShould I Take This Plan? This is not Aam-Admi ULIP Plan. This is only for the rich. There is a saying, Richer Get Richer, Poorer get Poorer. This Plan is a exact example of the same. This is Single Premium plan, and the Minimum premium is set very high. As the name suggest, the plan has a name “premium” attached to it. If you have money to invest, and then go for it. We have a YES. Reasons being: 1. No Partial Withdrawal 2. Multiple Fund Investment options 3. Can club multiple Funds together 4. Riders for Insurance are the ones required for a person to take. 5. Charges on the riders are less compared to other plans. 6. Tax deduction on contribution , The premium you contribute in your Wealthsurance Premier Plan is eligible for tax deduction under Sec. 80 C only up to a limit of Rs. 1 lakh per year. If you choose Major Diseases Benefit or Hospital Cash Benefit, the charges payable for them are eligible for deduction under Sec. 80 D up to a limit of Rs. 15,000 per year. Thank You Visit us CustBase to Search Local Insurance Agent and Learn About Different Insurance Plans This is authors view, and not responsible for any damage or loss caused. Please consider risk while investing