A

SUMMER TRAING PROJECT REPORT

ON

ANALYSIS OF VARIOUS INSURANCE

PLANS
OF
IDBI FORTIS LIFE INSURANCE CO. LTD.
1 Floor, H.B. Twin Tower, Netaji Subash Place Pitam Pura,
st

New Delhi-110034

Submitted for the partial fulfillment of the requirement for

the award
Of
MASTER OF BUSINESS ADMINISTRATION
SUBMITTED TO SUBMITTED BY

DR. RAHAT ALI SACHIN KUMAR

(HOD) MBA (IIIrd Sem.)

(FINANCE & MARKETING)

ROLL NO. 0822370036

VIVEKANAND INSTITUTE OF TECHNOLOGY &

SCIENCE
33-34 KM STONE, DELHI -HAPUR ROAD, (NH-24),
JINDAL NAGAR GHAZIABAD
 DECLARATION

I, HEREBY CERTIFY THAT THE SURVEY DATA COLLECTION AND

ANALYSIS WORK RELATED TO RESEARCH PROJECT REPORT

ON ‘ANALYSIS OF VARIOS INSURANCE PLANS OF IDBI FORTIS’

HAS BEEN CARRIED OUT EXCLUSIVELY ON MY OWN EFFORT

UNDER THE SUPERVISION OF MR. SACHIN BANSAL (AGENCY

MANAGER)

SACHIN KUMAR
ROLL NO. 0822370036
 PREFACE
The business of insurance is related to the protection of economic value of assets.
The assets would have been created through the efforts of the owner, in the
expectation that, either through the income generated there from the some other
output, some of his needs would be met. If assets get lost earlier, being destroyed
or made non-functional, through an accident or other unfortunate event, the owner
and those deriving benefits there from suffer. Insurance is a mechanism that helps
to reduce such adverse consequences.

Insurance plays a major role in different perspective. For economic development

investments are necessary. Investments are made out of savings. A life insurance
company is a major investment for the mobilization of saving of people,
particularly from the middle and lower income groups. These savings are
channeled in to the investments for economic growth. In order to amenable to
statistical predictions, insurance risks must be handled on a large scale.
All organization face change in their environment with resultant change in their
markets and in the ability to satisfy their markets. Each organization is faced with
new marketing problems and opportunities in their existing and potential market.
Marketing decision makers cope with these challenges in a variety of ways. The
marketer’s is being required to forecast, forecast the risk and uncertainness in
their own way, supported by market research.
Man on earth can entirely eliminate knows no method but scientific method can
minimize the element of uncertainties that can result from back of information
without orientation, Market research is a process of collecting information about
who, why and how of actual and potential consumers in a particular market. The
main purpose of market research is the ability to continually foresee both in the
long and short term.
 ACKNOWLDGEMENT
There are many people in IDBI FORTIS LIFE INSURANCE who had helped me

during the course of the project. It is my duty to acknowledge and thank them for

their help. As a matter of course thanks are due to the following persons in the

given order:

AGENCY MANAGER: Mr. SACHIN BANSAL, IDBI FORTIS LIFE INSURANCE

CO. LTD.1st Floor, H.B. Twin Tower, Netaji Subash Place Pitam Pura, New

Delhi-110034.who has been there as and when I required their help in no mater

what respect. Never the less I have learnt the major managerial skills which would

be helpful in my career.

Others: This part includes the day to day people whom I use to meet in the

organization. They are the advisors working there; this include the staff working

out there and even the people whom I met in the NCR, who were kind enough to

spare a few minutes of their precious time and to take part in the survey.

Last but not the least my special thanks to my parents without their support my
MBA course would not have been possible.

SACHIN KUMAR
MBA-III Sem.
ROLL NO. 0822370036
 EXECUTIVE SUMMARY
In today’s competitive world the topper is always doing something different from
others or may be the same thing in a much more different way. The same logic
goes for the business world too. With new competitors coming every now and
then the field of business, the company positioning should be strong enough to
retain its position in business.

IDBI FORTIS LIFE INSURANCE COMPANY LIMITED has positioned itself

strongly with high-class advisors, unit manager, and technical persons.
The study that is being made is that to find the “ANALYSIS OF VARIOUS
INSURANCE PLANS OF IDBI FORTIS”

To make this research mostly Primary Data is being used, taking a sample size
of 80 people. The Research Methodology that is being implemented in this study
is Sampling Method.

This result which was found from this research clearly shows a company should
be more flexible to the training program they organized for the high profile advisor.
The project undertaken is the through study of the services and activities, which
the company is willing to give each advisor.

From the survey it was revealed that IDBI FORTIS is doing quite well in all the
sections of its operations, but still it needs some perfection to attract more and
more HIGH PROFILE ADVISOR so that they will give more policy for the
company.
 TABLE OF CONTENT
 GENERAL VIEW OF INSURANCE

• WHAT IS INSURANCE?

• BRIEF HISTORY OF INSURANCE

• PURPOSE AND NEED OF INSURANCE

• INDIAN INSURANCE SECTOR

 COMPANY PROFILE

• BRIEF HISTORY

• FUNCTIONS

• CHAIRMAN MESSAGE

• MD & CEO MESSAGE

• VISION

 PRODUCT OF CMPANY

 RESEARCH OBJECTIVE

 RESEARCH METHODOLOGIES

• METHOD

• DATA COLLECTION METHOD

• SAMPLE SIZE

• SAMPLE COMPOSITION

• RESEARCH DESIGN

• RESPONSE OF QUESTIONNAIRE

 FINDING

 SUGGESTIONS AND RECOMMENDATION

 CONCLUSION

 APPENDIX QUESTIONNAIRE
 BIBLIOGRAPHY
 ABOUT INSURANCE INDUSTRY

WHAT IS INSURANCE?
The business of insurance is related to the protection of the economic values of
assets. Every asset has a value; the assets would have been created through the
efforts of the owner. The asset is valuable to the owner, because he expects to
get some benefits from it. The benefit may be an income or something else. It is a
factory or a cow, the product generated by is sold and income generated. In the
case of a motor car, it provides comfort and convenience in transportation. There
is no direct income.

Every asset is expected to last for a certain period of time during which it will
perform. After that, the benefit may not be available. There is a life-time for a
machine in a factory or a cow or a motor car. None of them will lose for ever. The
owner is aware of this and he can so manage his affairs that by the end of that
period of life-time, a substitute is made available. Thus, he makes sure that the
value of income is not lost. However, the asset may get lost earlier. An accident or
some other unfortunate event may destroy it or make it non financial. In that case,
the owner and those deriving benefits there from, would be deprived of the benefit
and the planned substitute would not have been ready. There is an adverse or
unpleasant situation. Insurance is a mechanism that helps to reduce the effect of
such adverse situation.

BRIEF HISTORY OF INSURANCE

The business of insurance started with marine business. Traders, who used to
gather in the Lloyd’s coffee house in London, agreed to share the losses to their
goods while being carried by ships. The losses used to occur because of pirates
who robbed on the high seas or because of bad weather spoiling the goods or
sinking the ship. The first insurance policy was issued in 1583 in England. In
India, insurance began in 1876 with life insurance being transacted by an English
company, the European and the Albert. The first Indian insurance company was
the Bombay Mutual Assurance Society Ltd, formed in 1870. This was followed by
the Oriental Life Assurance Co. in 1874, the Bharat in 1896 and the Empire of
India in 1897.

Later, the Hindustan Cooperative was formed in Calcutta, the United India in
Madras, the Bombay Life in Mumbai, the National in Calcutta, the New India in
Mumbai, the Jupiter in Mumbai and the Lakshmi in New Delhi. These were all
Indian companies, started as a result of the swadeshi movement in the early
1900s. By the year 1956, when the life insurance was nationalized and the Life
Insurance Corporation of India (LIC) was formed on 1st September 1956, there
were 170 companies and 75 provident fund societies transacting life insurance
business in India. After the amendment to the relevant laws in 1999, the L.I.C. did
not have the exclusive privilege of doing life insurance business in India. By
31.3.2002, eleven new insurers had been registered and and had begun to
transact life insurance business in India.

PURPOSE AND NEED OF INSURANCE

Assets are insured, because they are likely to be destroyed, through accidental
occurrences. Such possible occurrences are called perils, Fire, floods,
breakdown, lightning, earthquakes, etc, are perils. If such perils can cause
damage to the asset, we say that the asset is exposed to that risk. Perils are the
events. Risks are the consequential losses or damages. The risk to a owner of a
building, because of the peril of an earthquake, may be a few lakhs or few crores
of rupees, depending on the cost of the building and the contents in it.

The risk only means that there is a possibility of loss or damage. The damage
may or may not happen. Insurance is relevant only if there are uncertainties. If
there is no uncertainty about the occurrence of an event, it cannot be insured
against. In the case of a human being, death is certain, but the time of death is
uncertain, In the case of a person who is terminally ill, the time of death is not
uncertain, though not exactly known. He cannot be insured.

Insurance does not protect the asset. It does not prevent its loss due to the peril.
The peril cannot be avoided through insurance. The peril can sometimes be
avoided, through better safety and damage control management. Insurance only
tries to reduce the impact of the risk and the owner of the assets and those who
depend on that asset. It only compensates the losses – and that too, not fully.

Only economic consequences can be insured. If the loss is not financial,

insurance may not be possible. Examples of non economic losses are love and
affection of parents, leadership of managers, sentimental attachments to family
heirlooms, innovative and creative abilities, etc.
 INDIAN INSURANCE SECTOR

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance
Corporation Act, 1956 and General Insurance Business (Nationalisation) Act,
1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and
other related Acts.

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was formed in September, 1956 by an
Act of Parliament, viz., Life Insurance Corporation Act, 1956, with capital
contribution from the Government of India. The then Finance Minister, Shri
C.D. Deshmukh, while piloting the bill, outlined the objectives of LIC thus: to
conduct the business with the utmost economy, in a spirit of trusteeship; to
charge premium no higher than warranted by strict actuarial considerations; to
invest the funds for obtaining maximum yield for the policy holders consistent
with safety of the capital; to render prompt and efficient service to policy
holders, thereby making insurance widely popular.

Since nationalisation, LIC has built up a vast network of 2,048 branches, 100
divisions and 7 zonal offices spread over the country. The Life Insurance
Corporation of India also transacts business abroad and has offices in Fiji,
Mauritius and United Kingdom. LIC is associated with joint ventures abroad in
the field of insurance, namely, Ken-India Assurance Company Limited,
Nairobi; United Oriental Assurance Company Limited, Kuala Lumpur and Life
Insurance Corporation (International) E.C. Bahrain. The Corporation has
registered a joint venture company in 26th December, 2000 in Kathmandu,
Nepal by the name of Life Insurance Corporation (Nepal) Limited in
collaboration with Vishal Group Limited, a local industrial Group. An off-shore
company L.I.C. (Mauritius) Off-shore Limited has also been set up in 2001 to
tap the African insurance market.
 General Insurance:
General insurance business in the country was nationalised with effect from 1st
January, 1973 by the General Insurance Business (Nationalisation) Act, 1972.
More than 100 non-life insurance companies including branches of foreign
companies operating within the country were amalgamated and grouped into
four companies, viz., the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company Ltd., and the
United India Insurance Company Ltd. with head offices at Calcutta, Bombay,
New Delhi and Madras, respectively. General Insurance Corporation (GIC)
which was the holding company of the four public sector general insurance
companies has since been delinked from the later and has been approved as
the "Indian Reinsurer" since 3rd November 2000. The share capital of GIC
and that of the four companies are held by the Government of India. All the
five entities are Government companies registered under the Companies Act.
The general insurance business has grown in spread and volume after
nationalisation. The four companies have 2699 branch offices, 1360 divisional
offices and 92 regional offices spread all over the country. GIC and its
subsidiaries have representation either directly through branches or agencies
in 16 countries and through associate/ locally incorporated subsidiary
companies in 14 other countries. A wholly- owned subsidiary company of GIC,
i.e. Indian International Pte. Ltd. is operating in Singapore and there is a joint
venture company, viz. Kenindia Assurance Ltd. in Kenya. A new wholly
owned subsidiary called New India International Ltd., UK has also been
registered.

MAJOR POLICY CHANGES

Reforms In Insurance Sector
Insurance sector has been opened up for competition from Indian private
insurance companies with the enactment of Insurance Regulatory and
Development Authority Act, 1999 (IRDA Act). As per the provisions of IRDA
Act, 1999, Insurance Regulatory and Development Authority (IRDA) was
established on 19th April 2000 to protect the interests of holder of insurance
policy and to regulate, promote and ensure orderly growth of the insurance
industry. IRDA Act 1999 paved the way for the entry of private players into the
insurance market which was hitherto the exclusive privilege of public sector
insurance companies/ corporations. Under the new dispensation Indian
insurance companies in private sector were permitted to operate in India with
the following conditions:

Company is formed and registered under the Companies Act, 1956;

The aggregate holdings of equity shares by a foreign company, either by itself or
through its subsidiary companies or its nominees, do not exceed 26%, paid up
equity capital of such Indian insurance company;
The company's sole purpose is to carry on life insurance business or general
insurance business or reinsurance business.
The minimum paid up equity capital for life or general insurance business is
Rs.100 crores.
The minimum paid up equity capital for carrying on reinsurance business has
been prescribed as Rs.200 crores.

The Authority has notified 27 Regulations on various issues which include

Registration of Insurers, Regulation on insurance agents, Solvency Margin,
Re-insurance, Obligation of Insurers to Rural and Social sector, Investment
and Accounting Procedure, Protection of policy holders' interest etc.
IDBI FORTIS

Company introduction
A new era of Insurance

BRIEF HISTORY
IDBI Fortis Life Insurance Co Ltd, is a joint venture between three leading
financial conglomerates – India’s premier development and commercial bank,
IDBI, India’s leading private sector bank, Federal Bank and Europe’s premier
Bancassurer, Fortis, each of which enjoys a significant status in their respective
business segments. In this venture, IDBI owns 48% equity while Federal Bank
and Fortis own 26% equity each.
IDBI Fortis launched its first set of products across India in March 2008, after
receiving the requisite approvals from the Insurance Regulatory Development
Authority (IRDA). Today, we offer our services through a vast nationwide network
across the branches of IDBI Bank and Federal Bank in addition to a sizeable
network of advisors and partners.
At IDBI Fortis we endeavor to deliver products that provide value and
convenience to the customer. Through a continuous process of innovation in
product and service delivery we intend to deliver world-class wealth management,
protection and retirement solutions to Indian customers.
About our Heritage

IDBI Bank Ltd. continues to be, since its inception, India’s premier industrial
development bank. Created in 1956 to support India’s industrial backbone, IDBI
Bank has since evolved into a powerhouse of industrial and retail finance. Today,
it is amongst India’s foremost commercial banks, with a wide range of innovative
products and services, serving retail and corporate customers in all corners of the
country from over 538 branches and more than 921 ATMs. The Bank offers its
customers an extensive range of diversified services including project financing,
term lending, working capital facilities, lease finance, venture capital, loan
syndication, corporate advisory services and legal and technical advisory services
to its corporate clients as well as mortgages and personal loans to its retail clients.
As part of its development activities, IDBI Bank has been instrumental in
sponsoring the development of key institutions involved in India’s financial sector
– such as the Securities and Exchange Board of India (SEBI), National Stock
Exchange of India Limited (NSE) and National Securities Depository Ltd.

Federal Bank is one of India’s leading private sector banks, with a dominant
presence in the state of Kerala. It has a strong network of over 600 branches and
600 ATMs spread across India. The bank provides over four million retail
customers with a wide variety of financial products. Federal Bank is one of the first
large Indian banks to have an entirely automated and interconnected branch
network. The Bank operates on the core banking platform and is RTGS/ NEFT
enabled through which it offers state-of-the-art technology enabled products and
services. In addition to interconnected branches and ATMs, the Bank has a wide
range of services like Internet Banking, Mobile Banking, Tele Banking, and Any
Where Banking, debit cards, online bill payment and call centre facilities to offer
round the clock banking convenience to its customers. The Bank has been a
pioneer in providing innovative technological solutions to its customers and the
Bank has won several awards and recommendations.

Fortis is an international insurance group composed of Insurance Belgium, a

leader in life and non-life insurance in Belgium distributing its insurance products
through the network of Fortis Bank and independent insurance brokers and
Insurance
International with subsidiaries in the UK, France, Hong Kong, Luxembourg (Non-
life), Germany, Turkey, Russia and Ukraine, and joint ventures in Luxembourg
(Life), Portugal, China, Malaysia, Thailand and India.

Functions of IDBI
• Help create a positive image of the industry and enhance consumer
confidence.
• Assist maintaining high standards of ethics and governance.
• Promote awareness regarding the role and benefits of life insurance.
• Organize structured and proactive discussions with Government,
lawmakers and regulators.
 • Conduct research in life insurance, publish monographs and contribute to
development of the sector.
• Act as forum of interaction with other organizations of the financial services
sector.
• Play leading role in insurance education, research, training and
conferences.
• Provide help and guidance to members when necessary.
• Be an active link between the Indian life insurance industry and the global
markets.

Who are we?

IDBI Fortis Life Insurance Co Ltd is a joint venture between three leading financial
conglomerates – IDBI, Fortis and Federal Bank. With the impressive pedigree of
these three financial giants, IDBI Fortis aims to provide innovative wealth
management, protection and retirement solutions to customers all across India.
At IDBI Fortis, we strongly believe that our human capital will play a vital role in
the delivery of our products to our customers. The IDBI Fortis vision is ’to build a
customer-centric Agency Channel that sets industry benchmarks for reach, quality
and cost effectiveness.’
We believe that by investing in and building human capital we can achieve our
vision.

How will we make a difference in your life?

A wise man once said that there is no greater joy than making a difference in
another person’s life. By becoming a Wealthsurance Advisor with IDBI Fortis, you
too can experience that joy.
We will provide you with the necessary tools in the form of specialized training
and support to help your customers build wealth and achieve long-term financial
security for their loved ones.
Equally importantly, while helping others, you will also help yourself.
Last but not the least, by becoming an IDBI Fortis Wealthsurance Advisor you can
choose the time of your work at your own convenience. Essentially, you can be
your own boss.

What is Your Role?

As a Wealthsurance Advisor with us, your role is not to just sell insurance. It is
about making a difference in people’s lives, an insurance sale being a by-product
of that.
Your role will allow you to meet people with special individual needs. You will help
them analyze their financial situation and provide them with solutions which will
help them achieve those goals and dreams.
Wouldn’t you like to be the person whom people thank when they have
successfully managed to fund their children’s higher education, retire comfortably
or to build personal wealth over the long term?

Partners in Progress
We strongly believe that our success lies in your success. Hence, we will support
you with:
Customer-centric and easy-to-sell Innovative Products
Investment Expertise
Customized Training Programmers
Essentially, we will equip you with all the processes and tools necessary to create
multiple sales which in turn will lead to your success in business.

CHAIRMAN MESSAGE
Yogesh Agarwal

With great delight, I present before you IDBI Fortis Life Insurance Co Ltd, a
company committed to bringing you products that help realize your unique dreams
and aspirations. Everyone has life goals but you need a reliable partner to work
with in making a secured plan that can achieve those goals. IDBI Fortis will offer
innovative solutions that meet your protection, savings and investment needs. The
insurance proposition offered by IDBI Fortis will help you meet all of your personal
goals whether it is to educate your child, build or manage wealth, establish a
retirement fund or gain protection against medical costs.
IDBI Fortis comes with impeccable parentage, being the result of the coming
together of three financial giants: IDBI Bank, Federal Bank and Fortis.

MD & CEO MESSAGE

G V Nageswara Rao

At IDBI Fortis, we think differently about insurance. We have set out to create
products that help realise your unique dreams and aspirations, by drawing upon
the power of insurance. Our Wealthsurance line of products combines wealth
creation and insurance protection into one powerful financial solution.
Wealthsurance Plans allow you to build wealth with planned as well as flexible
savings along with a choice of investment options. What is more, once you sign
up, Wealthsurance Plans can ensure that your financial goals are achieved even if
there were unforeseen crises such as death, accident, disablement or serious
illness.

IDBI FORTIS

Vision and value

Maintaining integrity through our value

Our Vision
To be the leading provider of wealth management, protection and retirement
solutions that meets the needs of our customers and adds value to their lives.

Our Mission
To continually strive to enhance customer experience through innovative product
offerings, dedicated relationship management and superior service delivery while
striving to interact with our customers in the most convenient and cost effective
manner.
To be transparent in the way we deal with our customers and to act with integrity.
To invest in and build quality human capital in order to achieve our mission.

Our Values

Transparency: Crystal Clear communication to our partners and

stakeholders

Value to Customers: A product and service offering in which customers

perceive value

Rock Solid and Delivery on Promise: This translates into being financially
strong, operationally robust and having clarity in claims

Customer-friendly: Advice and support in working with customers and

partners

Profit to Stakeholders: Balance the interests of customers, partners,

employees, shareholders and the community at large
IDBI FORTIS

Wealthsurance
Wealthsurance Foundation Plan
UIN: 135L001V01

Wealthsurance: Insured Wealth Plans to grow wealth under a

protective cover
Wealthsurance offers you Insured Wealth Plans. They allow you to
create build and manage wealth by giving several choices and great
flexibility so that your plan meets your specific needs. You can decide
how you wish to save so that it suits your savings habit. You can choose
how your money is invested so that you can grow wealth as per your
investment preferences. What is even better, Wealthsurance protects
your wealth plans with insurance benefits so that your wealth-building
efforts remain unaffected in unforeseen events and your financial goals
can still be achieved.

What is Wealthsurance?
Wealthsurance combines wealth creation and insurance protection into
one powerful financial solution. Unlike other investment alternatives, it
allows you to ensure that your goals of wealth creation are achieved
even in the event of serious illness, accidents, disablement or death.

Wealth Plan with a powerful range of Investment Choices

Wealth creation does not happen by chance, it needs a plan.
Wealthsurance is a wealth plan which allows you to build and manage
wealth. You can save into the Plan as much money as you want,
whether at one time, at regular intervals or as per your convenience.
Wealthsurance offers a wide choice of investment options from which
you can select one or more, based on your preferences.
The investment options we offer are designed to meet the needs of all
types of investors depending upon their risk appetite, stage of life or
investment horizon. You can choose options that give
(a) Assured fixed returns, (b) variable returns linked to market
performance or (c) returns linked to equity market but with protection
of capital. Wealth grows in your plan based on the options you have
chosen.

Wealth Plan can be insured against unforeseen events

Wealthsurance can protect your Wealth Plan against a range of events
such as death, terminal illness, 17 major diseases sickness requiring
hospitalization, serious accidental injuries or total and permanent
disablement. With other investment products, if any such

event happens, you may not be able to save as planned or even be

forced to withdraw from your savings. But in Wealthsurance, these
benefits allow you to meet additional expenses without affecting your
fund value so that your plans to save and accumulate wealth are not
affected even if life throws surprises. Once you sign up for it, your
Wealthsurance Plan works even if you are not able to.
Wealth grows better under a protective cover because life’s
uncertainties cannot deplete wealth, which otherwise they would
normally do.

Wealthsurance is for those who will live

Life insurance is sometimes thought of as for those who might die, but
Wealthsurance is for those who will live. Usually life insurance products
provide benefits upon death, but
Wealthsurance is designed to also give Living Benefits to ensure your
well-being in your own lifetime.

How does Wealthsurance work?

Wealthsurance gives you (a) Investment Account and
(b) Insurance Account.

My Investment Account
From the premiums you pay, Premium Allocation Charge is deducted.
The balance amount goes into the investment options you choose in the
proportion you specify. IDBI Fortis Investment Basket contains all the
investment options we offer.
The balance in your Investment Account reflects the wealth built over
time from your premium contributions and the returns from the
investment options chosen by you.

My Insurance Account
You can also choose any of the insurance benefits we offer under IDBI
Fortis Insurance Basket. You pay for only those benefits you choose and
the charges are deducted from your Investment Account.

My Wealthsurance Plan: Get the one you need

Wealthsurance has many options so that you can choose what suits
your circumstances. You can make your Wealthsurance Plan in two
ways.

Ready Plans for typical needs

We have developed several Ready Plans to meet the typical needs of
customers. A Ready Plan is simply a set of pre-chosen options of the
Wealthsurance Foundation Plan. Each Ready Plan is aimed at a specific
need. There is quite likely a Ready Plan that suits your needs in which
case you can simply choose the Plan.

Custom Plan for specific needs

If a Ready Plan does not meet your needs, you can design your own
Custom Wealthsurance Plan with 5 simple steps:

Step 1: Choose the premiums you wish to contribute

Step 2: Choose the investment options your money goes into
Step 3: Choose the Sum Insured for Life and Terminal Illness Benefit
Step 4: Choose the optional insurance benefits you need
Step 5: Choose Plan Term based on your horizon for building wealth and
for enjoying insurance benefits

Main Features of Wealthsurance

Plan
 Contribute money in a flexible way that suits your savings
habit
• Choose (a) Single Premium or (b) Regular Premiums. Pay
premiums for a limited period and enjoy benefits for a longer
period.
• Pay additional top-up premiums whenever you want. Grow wealth
faster and get tax benefits.

 Choose how your money is invested from a wide choice of

investment options, based on your return expectations and risk
tolerance
• Choice of (a) Assured Fixed Returns, (b) Variable Returns linked to
market performance, (c) Returns linked to market but with
protection of capital.
• Investment options available for risk-averse as well as risk taking
investors
 • Choice of stocks, bonds and money market funds

 Decide how you wish to manage your investments

• Switch amongst investment options any time and manage your
portfolio, free of charges and taxes
• Leave management of your portfolio entirely to us, if you do not
have the time or inclination

 Flexibility to choose the insurance benefits you need

• You can choose the amount of life insurance and terminal illness
benefit you need
• Get Optional Insurance Benefits on suffering major diseases,
hospitalization, accidental death or disablement
• Premiums can be waived in case of your death or disablement, so
that your plans are well protected

 Withdraw funds in case of need, after three years

 Make your Wealthsurance Plan quickly and easily

• Choose a Ready Plan for typical needs
• Develop a Custom Plan for special needs

 Get tax benefits on contributions and benefits

• Tax-free income helps grow wealth faster

 Option to create exclusive funds for loved ones

 Change your Plan as your needs change

• Flexibility to change premiums and benefits to suit your changing
needs
PREMIUM MODE
Pay premiums in a flexible manner: Build wealth easily with
convenient savings
Wealthsurance allows you to save in a manner that best suits your
savings habit. It is very flexible in premium contributions. You can save
in a disciplined manner and also get flexibility to contribute additional
amounts whenever you have extra money. Wealthsurance allows you to
pay premiums just one time or for a limited period and yet enjoy
insurance benefits for a long period. Flexible premiums allow you to
build wealth in a convenient manner and also get tax benefits.

Types of Premiums
Wealthsurance has two types of premiums: (a) Basic Premiums and (b)
Top-up Premiums.

(a) Basic Premiums

When you choose your Wealthsurance Plan, you have to indicate the
premiums you wish to contribute. These are your Basic Premiums. You
can choose either Single Premium or Regular Premium.

Single Premium: If you choose Single Premium, you have to simply

make a one-time payment at the time of taking the Plan.
Minimum amount is Rs 20,000.

Regular Premium: If you choose Regular Premium, you have to

indicate (a) Amount, (b) Frequency of payment and
(c) Payment Term. Minimum amount is Rs 10,000 per year, payable in
quarterly, half-yearly or annual installments as you choose.
Minimum amount is Rs 1,000 per month, if you choose monthly
payment mode. Minimum premium payment period is 3 years.

(b) Top-up Premiums

Over and above the Basic Premiums, you can pay Top-up Premiums.
Minimum amount is Rs 5,000 at a time and you can pay whenever you
want and any number of times until the maturity of your Plan. Top-ups
allow you to contribute additional premiums if and when you want, grow
wealth at your convenience and get tax benefits. Top-up Premiums can
be paid only if you have paid all the Basic Regular Premiums due till
date.
Top-up Premiums may require additional sum insured
If total of Top-up Premiums paid exceed 25% of Basic Premiums paid
(whether Single or Regular) till the date of any Top-up, the excess
amount should have life insurance cover equal to 125%. to ensure that
you have flexibility to pay the amount of Top-up
Premiums you want please choose a higher Sum Insured at the time of
taking Wealthsurance Plan. You can also apply to us to increase Sum
Insured at a later date if you so wish.

Best of both worlds

Basic Premiums enable you to become a disciplined saver and invest in
a systematic, methodical way to build wealth. Top-up Premiums give
you the flexibility to contribute additional premiums whenever you have
extra money so that you can reach your goals faster. Together, they
give you great flexibility to save, invest and grow wealth.

Premium Allocation Charge

Premium Allocation Charge is deducted from the premiums you pay and
the balance amount is invested in the investment options of your
choice. You can think of it as similar to entry load in the case of mutual
funds.
Single Premium and Top-up Premiums

Amount of Single or Premium

Top-up Premium Allocation Charge
Rs 20,000 - Rs 49,999 1.5%
Rs 50,000 - Rs 99,999 1%
Rs 1,00,000 - Rs 2,49,999 0.5%
Rs 2,50,000 and above Nil

Regular Premium

Amount of Premium Payment Term (years)

Regular Premium
3-4 5-9 10 - 15 - 20
(per year)
14 19 &more
Rs 10,000 - Rs 29,999 4% 3.75% 3.5% 3.25% 3%
Rs 30,000 - Rs 47,999 3.75% 3.5% 3.25% 3% 2.75%
Rs 48,000 - Rs 71,999 3.25% 3.25% 3% 2.75% 2.5%
Rs 72,000 - Rs 95,999 3% 3% 2.75% 2.5% 2.25%
Rs 96,000 - Rs 2.75% 2.75% 2.5% 2.25% 2%
2,39,999
Rs 2,40,000 - Rs 2.5% 2.5% 2.25% 2% 1.75%
5,99,999
Rs 6,00,000 and 2.25% 2.25% 2% 1.75% 1.5%
above

Eligibility Conditions
Any person over the age of 18 years can apply to us to take a
Wealthsurance Plan. You can designate yourself or any other person (in
whom you have insurable interest) as the Insured Person. The Insured
Person should be at least one month old but not more than 65 years
old. Age of the Insured Person cannot exceed 75 years at the end of
Plan Term. Wealthsurance allows you to pay premiums and get tax
benefits for yourself, while the insurance benefits can cover your
spouse or child.

Where the Insured Person is a minor, the policy will vest in the minor
upon attaining majority at the age of 18 years.

IDBI Fortis Investment Basket: Tools for

building your wealth
The power of Wealthsurance is provided by the wide choice of
investment options it offers. They give you great flexibility
in how you build and manage wealth. The full range of investments we
offer is called the IDBI Fortis Investment Basket.
You can choose one or more options from the basket based on your
return expectations and risk tolerance. You can also switch and change
your investment options from time to time, as you wish.

The investment options we offer are designed to meet the needs of all
types of investors. You can choose the options that best suit your needs
of safety, liquidity and returns.

Fixed Return Options

We offer investment options that give fixed assured returns for those
who prefer to get fixed or floating rate of return on their investment.

Capital Guaranteed Options

We also offer options where we guarantee the face value of each unit
on the specified maturity date. A part of the money is invested in stock
markets and your returns depend upon the market performance. These
are suitable for those who want to invest in equity markets, without fear
of loss of principal.

Market Fund Options

We offer a range of funds that invest in stocks, bonds and money
market. The returns on these funds are dependent upon the market
performance. Returns and risk vary by the type of fund.

Manage yourself or leave it to us

We offer two ways in which you can manage your investments:

Do-it-yourself: You can decide to invest in the various options and

change them from time to time, as you wish. This is suitable when you
have a specific idea where you wish to invest or you have the time and
inclination to manage your investments from time to time.

Leave-it-to-us: Alternatively, you can leave it entirely to us to manage

your investment strategy from time to time by simply indicating how
much risk you are prepared to take. We give you a choice of three risk
levels: Cautious, Moderate and Aggressive.
Equity exposure is restricted, based on the risk level you choose.

MAJOR INVESTMENT AREAS

OF WEALTHSURANCE
Types of Investment Options (FUNDS)
We offer five types of Investment Options: (a) Monthly Interest Account
which gives interest at a declared rate on your account balance, (b)
Guaranteed Return Funds which give fixed, assured returns for a
specified period, (c) Capital
Guaranteed Funds which ensure that your principal is protected even
while investing in stocks, (d) Market Linked Funds where you can
choose to invest in stocks, bonds or money market and get market
returns, (e) Asset Allocator Funds where
you can leave the management of your funds entirely to us, by simply
indicating the level of risk you are prepared to take.

1. Fixed Return Options: When you want fixed,

assured returns

A. Monthly Interest Account

Risk: Low

Monthly Interest Account gives you fixed interest on the account

balance. You can choose to deposit any proportion or all of your
premiums into it, whether regular or top-up Premiums.
Your Account will earn interest at the declared rate on the daily
outstanding balance. The balance in your Account, consisting of
premiums deposited and interest earned, is available to switch into any
other investment option and for withdrawals as permitted.

Interest Rate: At the beginning of each month, IDBI Fortis will declare
a credit rate by way of interest
for this Account. The interest rate will be declared out of the estimated
income from the underlying segregated portfolio of investments after
(a) appropriation of fund management charge of 1%, and (b) transfers
to/from a smoothing reserve. Your account balance will grow each day
at the declared interest rate. Rates declared for the Account are
available at www.idbifortis.com
The purpose of Monthly Interest Account is to provide a smoothed
return to the investors from out of the investment income of the
underlying portfolio. For this purpose, a reserve for smoothing of
interest rate will be maintained.

Investment Pattern: The Monthly Interest Account is a segregated

fund which will invest 100% of the money in fixed income investments
including government securities, treasury bills, bank deposits,
certificates of deposit, corporate securities, commercial paper,
securitized papers, structured products, money market instruments,
etc. The fund may use derivatives to meet its objective to the extent
permitted by the applicable guidelines.

B. Guaranteed Return Funds

Risk: Low

Guaranteed Return Funds give you an assured, fixed return for a

specified period. Each fund matures on a specified date and carries a
minimum Guaranteed Maturity Value for each unit. Each fund is
available for investment for a limited period after the opening date
during which units are allotted
at the Net Asset Value. Upon maturity of the fund, you will receive the
Net Asset Value as on the maturity date or the Guaranteed Maturity
Value for the units you hold, whichever is higher.
Available Funds: The available funds and the guaranteed maturity
value for each unit that they carry are declared by us from time to time.
You can select a fund from those available at the time you pay the
premium. You can also switch into them when they are available. The
available funds are given at
www.idbifortis.com

Liquidity: Guaranteed Return Funds mature on the specified date.

However, if you wish, you can redeem them before maturity at the Net
Asset Value and the guarantee will not apply.

Investment Objective: Guaranteed Return Funds are segregated

closed-ended funds with specific maturity date and a minimum
guaranteed maturity value per unit. They aim to generate a fixed return
by investing in fixed income instruments with maturities close to the
maturity date of the fund and follow a buy-and-hold strategy.

Investment Pattern: These funds invest up to 100% of the moneys in

fixed income investments including government securities, treasury
bills, bank deposits, certificates of deposit, corporate securities,
commercial paper, securitized papers, structured products and money
market instruments.
The fund may use derivatives to meet its objective to the extent
permitted by the applicable guidelines.

Fund Management Charge: A fund management charge of 1.5% p.a.

will be appropriated while computing the Net Asset Value of the
Guaranteed Return Funds.

2. Capital Guaranteed Options: You can invest in

stocks without losing the principal
C. Capital Guaranteed Funds
Risk: Medium

Capital Guaranteed Funds guarantee the return of at least the face

value of each unit on the specified maturity date. Returns are, however,
not guaranteed and depend upon the performance of the equity
portfolio of the fund and the stock market.
Available Funds: Capital Guaranteed Funds are segregated closed-
ended funds with specified maturity date. Each fund is available for
investment for a limited period after the opening date during which
units are allotted at the Net Asset Value. Upon maturity, you receive the
Net Asset Value as on the maturity date or the face value of each unit
you hold, whichever is higher.
The available funds are declared by IDBI Fortis from time to time. You
can select a Capital Guaranteed
Fund from those available at the time you pay the premium. You can
also switch into them when they are available. The available funds are
given at www.idbifortis.com
Investment Strategy: Capital Guaranteed Funds are managed using
capital protection techniques including portfolio insurance strategies
and manage the exposure to equity and debt with a view
to obtaining equity exposure consistent with capital protection and the
guaranteed maturity value.
The funds will implement ‘ratcheting’ strategy as decided by IDBI Fortis.
Under ‘ratcheting’, when the Capital 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 so that you
are assured of those returns even if the market moves adversely in the
future. ‘Ratcheting’ may reduce future exposure to equity.
Capital Guaranteed Funds may also use derivatives to meet their
objectives to the extent permitted by applicable guidelines.
Investment Pattern: Capital Guaranteed Funds will manage exposure
to fixed income investments and equities as stated below:
Range of Debt exposure: 40%-100%
Range of Equity exposure: 0-60%
Liquidity: Capital Guaranteed Funds mature on the specified date.
However, if you wish you can also redeem them before maturity at the
Net Asset Value, but the guarantee will not apply.
Fund Management Charge: The funds carry a fund management
charge of 2.25% p.a. which is applied before computing the Net Asset
Value.

3. Market Fund Options: For investing in stocks, bonds

or money market

Market Linked Funds are similar to mutual funds. They are open-ended
funds which invest in equity, debt or money market as per their
investment objectives. The Net Asset Value (NAV) of each fund is
published on a daily basis.
You can invest your premiums into, switch into or switch out of any fund
at any time at the NAV. Your gain or loss is the difference between the
value at which you invested and the value at which you exited. In
Market Linked Funds, the
NAV depends on the market value of the underlying investments. The
expected return and risk vary by the Fund.
We offer the following funds:

Fund: D1. Equity Growth Fund

Risk: High
Investment Objective: Seeks to invest in listed stocks and aims
to generate high returns by picking stocks that have growth prospects.
It aims to diversify risk by investing in large-cap as well as mid-cap
stocks and across multiple sectors.

Investment Pattern: Fixed Income Investments including Cash

and Money Market Allocation Equities and Equity-linked Instruments

Allocation: 0 - 50%
50 - 100%

Fund: D2. Nifty Index Fund

Risk: High

Investment Objective: Nifty Index Fund invests in Nifty stocks

and aims to track the index as closely as possible.

Investment Pattern: Fixed Income Investments including

Cash and Money Market Equities and Equity-linked Instruments

Allocation: 0 - 20%
80 - 100%

Fund: D3. Bond Fund

Medium
Investment Objective: Seeks to invest in fixed income
investments and aims to generate returns from interest coupons and
the opportunities in changing yield curve. The duration of the
underlying portfolio may be high or low, depending upon the market
conditions.

Investment Pattern: Fixed Income Investments including

Cash and Money Market

Allocation: 100%

Fund: D4. Income Fund

Risk: Low

Investment Objective: Aims to generate a return by seeking to

invest in fixed income investments that carry low or medium market
risk

Investment Pattern: Fixed Income Investments including

Cash and Money Market

Allocation: 100%

Fund: D5. Liquid Fund

Risk: Low
Investment Objective: Seeks to invest in overnight money and
other money market instruments

Investment Pattern: Money Market, Cash and

Short-term Debt

Allocation: 100%

4. Asset Allocator Funds: When you want us to

manage your investment allocation

E. Asset Allocator Funds

In Asset Allocator Funds, our fund managers choose how much to invest
in stocks, bonds or money market, depending upon their view on the
markets.

Leave-it-all-to-us: Asset Allocator Funds are suited to those who wish

to leave the management of their investment strategy entirely to us.

Risk Profile: We manage the funds based upon your risk preference.
You can choose amongst three risks levels: Cautious, Moderate and
Aggressive. The equity component is restricted, based on the risk
profile chosen by you.
Structure: Asset Allocator Funds are funds of funds which invest in the
other investment options within IDBI Fortis Investment Basket including
the Market Linked Funds. Equity component may go up to 25% in
Cautious, 50% in Moderate and 100% in Aggressive
GENERAL INSTRUCTION

Minimum allocation to a fund: Minimum amount of premium

direction or redirection in any investment fund should be at least 15%
of the annual premium.

Unit Price Formula: Calculation of unit price for a unit-linked fund

depends on whether that fund has net creations or redemptions on the
valuation date. Net Asset Value for each unit is determined as: Market
value of investments plus expenses incurred in the purchase of assets
(if the fund has net unit creations) or less expenses incurred in the sale
of assets (if the fund has net unit redemptions) plus value of current
assets plus accrued income net of management charges less current
liabilities less provisions, divided by the number of units on issue.

Investment Guidelines: All segregated funds will be managed,

subject to compliance with applicable statutory regulations and
guidelines. At present, investments in other than approved securities
(including third party mutual funds) cannot exceed
25%. Also, as per present guidelines of IRDA, a policy owner cannot
invest more than 40% of total fund in liquid fund. All of the funds will
also trade in derivatives, invest in third-party funds or engage in short
selling to the extent permitted by the applicable regulations.

Fund Management Charges: Fund Management Charges are

2% p.a. for Equity Growth Fund, 1.75% p.a. for Nifty Index Fund,
1.5% p.a. for Bond Fund, 1.25% p.a. for Income Fund and 1% p.a. for
Liquid Fund. For Asset Allocator Funds, additional
Fund Management Charges are 0.25% p.a., 0.5% p.a., and 0.75% p.a.
for Cautious, Moderate and Aggressive respectively.
We reserve the right to increase charges for any fund by up to 0.75%
p.a., with prior approval of IRDA.
We will charge you or deduct from your investment amount any taxes,
duties or surcharges of whatever description levied or that may be
levied by any statutory authority.

New Funds: IDBI Fortis will introduce new funds, from time to time, to
meet changing needs of investors, market conditions and regulatory
environment. Similarly, old funds may be withdrawn or merged. As a
policy owner, the entire suite of investment options under IDBI Fortis
Investment Basket will be available to you, unless specifically excluded.

Living Benefits
IDBI Fortis Insurance Basket: Protect your Wealth Plans & Get
Living Benefits

Besides allowing you to build wealth, Wealthsurance protects your

Wealth Plans with insurance. While many life insurance products
provide benefits upon death, Wealthsurance is designed to also offer
Living Benefits. Living Benefits help you to overcome the crises during
your lifetime. The full range of insurance benefits we offer is called the
IDBI Fortis Insurance Basket. Please refer to our Insurance Basket Guide
for details of the optional health, accident and disablement insurance
benefits which are also available with your Wealthsurance Plan.

Life and Terminal Illness Benefit: Get benefits on death as well as

terminal illness

We pay benefits under your Wealthsurance Plan in the event of(a)

death, and (b) terminal illness.
A. Death Benefit
We pay Death Benefit in the event of death of the Insured Person due to
any cause, natural or accidental. Death Benefit is the higher of the
following two amounts:
(a) Sum Insured or
(b) The Fund Value in your Investment Account.
Upon payment of Death Benefit, your Wealthsurance Plan is terminated.

B. Terminal Illness Benefit

While most life insurance policies pay benefits upon death, a unique
feature of Wealthsurance Plan is accelerated payment of benefit upon
diagnosis of terminal illness.
We pay Terminal Illness Benefit if the Insured Person is diagnosed as
terminally ill and is expected to live for not more than six months. We
may require the diagnosis to be made by a specialist medical
practitioner appointed by us.
Terminal Illness Benefit is equal to Sum at Risk (i.e. Sum Insured minus
Fund Value), subject to a maximum of Rs 25 lakhs. If Fund
Value is greater than Sum Insured then there is no Sum at Risk and
Terminal Illness Benefit does not apply.
Upon payment of the Terminal Illness Benefit, we will reduce the
Sum Insured by the amount of the Terminal Illness Benefit paid.
The policy continues as before except with reduced Sum Insured.

You can choose your Sum Insured

In your Wealthsurance Plan, you can choose the Sum Insured within the
minimum and maximum limits specified below.

Minimum Sum Insured

The minimum Sum Insured depends upon whether you have chosen
Single or Regular Premium.
Single Premium: In Single Premium, the minimum Sum Insured is 1.25
times the Single Premium Amount where policy term is less than 10
years and 1.10 times the Single Premium Amount where policy term is
10 years or more.
Regular Premium: In Regular Premium, the minimum
Sum Insured is 5 times of Annual Regular Premium Amount.

Maximum Sum Insured

There is no maximum limit on Sum Insured. The limit, if any, is
determined by underwriting.

Exclusions
(a) Death Benefit is not paid in the event of suicide, attempted suicide,
or self-injury within 12 months from the commencement of the Plan, (b)
Terminal Illness Benefit is not paid in the event of attempted suicide or
self-injury, and (c) Death or Terminal
Illness Benefit is not paid before completion of age 7 if the
Insured Person is a child. In above cases, only the Fund Value will be
paid.

Mortality and Terminal Illness Charges

To meet the cost of Life and Terminal Illness Cover, Mortality and
Terminal Illness Charges are deducted at the beginning of each month
by cancellation of units in your Investment Account.
Mortality and Terminal Illness Charges are calculated on the Sum at
Risk which is defined as Sum Insured minus Fund Value.
If the Fund Value in your account exceeds the Sum Insured, then Sum
at Risk is taken as zero.

Charges (excluding service tax, cess and any other statutory levies) for
sample ages for a healthy adult are as below:
Per annum per Rs 1,000 Sum at Risk (Rs)
Age (years) 25 30 35 40 45 50
Male Mortality Charge 1.8 1.8 2.1 2.9 4.3 6.9
1 6 4 8 1 9
Terminal Illness 0.0 0.0 0.0 0.0 0.1 0.2
Charge 6 6 7 9 3 2
Total 1.8 1.9 2.2 3.0 4.4 7.2
7 2 1 7 4 1
Femal Mortality Charge 1.7 1.8 1.9 2.4 3.4 5.2
e 4 5 0 0 3 0
Terminal Illness 0.0 0.0 0.0 0.0 0.1 0.1
Charge 5 6 6 7 1 6
Total 1.7 1.9 1.9 2.4 3.5 5.3
9 1 6 7 4 6

At the time of underwriting, the charges may be increased, based on

your family history and medical condition.

Policy Administration Charge

A flat charge of Rs 60 per month will be deducted by cancellation of
units at the beginning of each month.

RIDERS
Optional Insurance Benefits: Protect your plans with
Health, Accident and Waiver of Premium Benefits

Besides Life and Terminal Illness Benefit, Wealthsurance offers a

number of optional insurance benefits. They protect you and your
wealth plans if you suffer major diseases, undergo hospitalization,
suffer serious accidental injuries, or become disabled.
We offer the following optional benefits by way of riders, which you can
choose as needed. You pay for only those benefits that you choose. The
charges for the benefits you choose are collected by cancellation of
units in your Investment Account. Please refer to our IDBI Fortis
Insurance Basket brochure for details, costs, exclusions and conditions
of each benefit.

1. Health Benefits

Major Diseases Benefit

If the Insured Person is diagnosed with any of the 17 specified major
diseases, a lump sum cash amount is paid as benefit. The benefit is
intended to take care of medical expenses and loss of earning that
result when a major illness strikes.
The diseases covered are (1) Heart Attack, (2) Coronary Bypass
Surgery,
(3) Heart Valve Replacement, (4) Surgery of the Aorta, (5) Cancer,
(6) Stroke, (7) Kidney failure, (8) Major organ transplant, (9) Paralysis,
(10) Coma, (11) Multiple Sclerosis, (12) Alzheimer’s disease,
(13) Parkinson’s Disease. (14) Benign Brain Tumour, (15) Major Head
Trauma,
(16) Major burns and (17) Primary Pulmonary Arterial Hypertension.
You can choose the Benefit Amount, which can be a maximum of
Rs 20 lakhs but not more than your Life and Terminal Illness Benefit
Sum Insured.

Hospital Cash Benefit

If the Insured Person is admitted to a hospital upon medical advice for
the treatment of any illness or injury, a daily cash allowance and other
benefits as specified are paid.
Hospital Cash Benefit is available in capsules that you can buy, subject
to a maximum of 8 capsules. Depending upon the number of capsules
you buy, Normal Benefit varies from Rs 500 to Rs 4,000 for each day of
hospitalization from the third day onwards. Normal
Benefit is paid if admitted in other than ICU. In case of admittance to
ICU, ICU Benefit is paid which varies from Rs 1,000 to Rs 5,000 per day.
Recovery Benefit is paid in case of hospitalization for more than five
days. Recovery Benefit is equal to twice the Normal Benefit payable per
day.

2. Accident and Disability Benefits

Accidental Death Benefit

In the event of the death of the Insured Person due to an accident, an
additional lump sum cash amount is paid as benefit.
You can choose the Benefit Amount, which can be a maximum of
Rs 50 lakhs but not more than your Life and Terminal Illness Benefit
Sum Insured.

Accidental Death and Disablement Benefit

In the event of the death or permanent disablement of the Insured
Person due to an accident, a lump sum cash amount is paid as benefit.
Different types of accidental injuries are covered with entitlement
specified as a percentage of Benefit Amount. You can choose the
Benefit Amount, which can be a maximum of Rs 50 lakhs but not more
than your Life and Terminal Illness Benefit Sum Insured.

3. Waiver of Premiums

Waiver of Premium Benefit on Death

In the event of the death of the Policy Owner, the future regular
premiums are waived and treated as paid.
Waiver of Premium Benefit on Total and Permanent
Disablement
In the event of total and permanent disablement of the Policy Owner,
the future regular premiums are waived and treated as paid

Liquidity through Withdrawals and Surrender

Wealthsurance allows you to build wealth over the long term. At the
same time, we recognize that you might have need
for funds before maturity of the Plan. We offer liquidity with (a) Partial
Withdrawals, (b) Surrender.

Partial Withdrawals
From out of the Fund Value in your Investment Account, you can
withdraw money for any purpose by making Partial Withdrawals,
subject to the following restrictions:
• No withdrawals are permitted in the first three years.
• After three years, you can make Withdrawals as follows:

(a) You can make Withdrawals whenever you need and as many times
as you desire.
(b) Each Partial Withdrawal should be for a minimum of Rs 10,000.
When you withdraw, you should always leave as minimum balance the
higher of (a) Top-up Premiums paid in the past three years or (b)
Annual Regular Premium Amount in the case of a Regular Premium Plan
or Rs 20,000 in the case of a Single Premium Plan.

No withdrawals are permitted if the Insured Person is below 18 years.

Charges
There are no charges for Partial Withdrawals. However,
IDBI Fortis 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 and Terminal Illness Benefits
If the Insured dies or is diagnosed for terminal illness before the age of
60, the Sum Insured will be reduced by any Partial
Withdrawals made in the preceding two years.
After age 60 of the Insured Person, the Sum Insured will be reduced by
the total amount of all Partial Withdrawals made after age 58 onwards.
Surrender
When you wish to terminate your Wealthsurance Plan before maturity,
you can surrender your Plan. However, you cannot surrender your
policy in the first three years of the Plan.
Upon surrender, we will pay you the Fund Value less Surrender Charge.
The Surrender Charge is a percentage of the Single
Premium or Annual Regular Premium that you have chosen in the Plan
according to the table alongside

Surrender Charge as a percentage of Single Premium

or Annual Regular Premium

Complete Single Regular Premium Payment Term (years)

3-4 5-9 10-14 15-19 20+
d Premiu
yrs yrs yrs yrs yrs
policy m
years
at the
date of
Surrende
r
3 4% 17.5% 20 30% 45% 60%
4 2% 15% 20% 30% 45% 60%
5 Nil 10% 15% 27.5% 45% 60%
6 Nil Nil 10% 25% 45% 60%
7 Nil Nil Nil 20% 40% 60%
8 Nil Nil Nil 10% 35% 60%
9 Nil Nil Nil Nil 30% 55%
10 Nil Nil Nil Nil 20% 50%
11 Nil Nil Nil Nil 10% 40%
12 Nil Nil Nil Nil Nil 30%
13 Nil Nil Nil Nil Nil 10%
14 and Nil Nil Nil Nil Nil Nil
above
Or at Nil Nil Nil Nil Nil Nil
Maturity

Plan your horizon with Policy Term

Policy Term is the maturity period of your Wealthsurance Plan. At the
end of the Policy Term, your Plan will terminate and you will receive the
Maturity Benefit. Your insurance benefits will cease.

Choice of Policy Term

The minimum Policy Term you can choose is 10 years. If the Insured
Person is a child, the minimum Policy Term should be 18 years less age
of the child at entry or 10 years, whichever is longer. There is no
maximum except that the age of the Insured Person cannot exceed 75
at the end of the Policy Term.
In Wealthsurance, you enjoy the benefits throughout the Policy Term.
You should choose a Policy Term, based on (a) your investment horizon
for building wealth, and (b) how long you wish to enjoy the
Life and Terminal Illness Cover and other insurance benefits.
Consider choosing a long Policy Term since you have the option of
liquidity through Withdrawals and Surrender, if you are in need of
funds.

Maturity Benefit
Maturity Benefit is equal to the Fund Value in your Investment
Account on the date of maturity. Upon payment of the Maturity
Benefit, your Wealthsurance Plan is terminated.

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 grow in the Investment Account and you will also
bear the investment risk as before except where we make specific
guarantees. Life Cover and Optional Insurance
Benefits cease at the maturity of the Plan and are not provided during
the period of the settlement option.

Tax Benefits of WealthsuranceTM Plan

Wealthsurance Plan gives you attractive tax benefits. Contributions by

way of premiums are eligible for deduction under Sec 80C. Insurance
charges for health benefits are eligible for deduction under Sec 80D.
Benefits are tax-free under
Sec 10(10D), allowing you to earn tax-free income and benefits.

Please note that the following is only for your information and you
should seek tax advice from your tax advisor. Please also note that tax
laws may change from time to time and, therefore, the terms and
conditions, as also the benefits may change.

Tax Deduction on Contributions

The premiums you contribute in your Wealthsurance Plan are eligible
for tax deduction under Sec 80C up to a limit of Rs 1 lakh per year. In
effect, you do not pay tax on that portion of your income which you
save in Wealthsurance Plan.
If you choose Major Diseases Benefit or Hospital Cash Benefit, the
charges payable for them are eligible for deduction under Sec 80D up
to a limit of Rs 15,000 per year.

Tax-Free Benefits
Under Sec 10(10D), all the Benefits you receive under
Wealthsurance Plan is tax-free without any limit. Thus the benefits are
fully available to meet the needs of financial security of your loved ones
or to take care of your expenses as in the case of medical crises.

Thus, all the returns you earn on the various investment options are
tax-free. Your wealth grows faster in Wealthsurance without tax impact.
When you compare returns on the investment options offered under
Wealthsurance with other investment alternatives, you should remember the
tax-free nature of Wealthsurance.

No Tax Deduction at Source

There is no tax deduction at source.

Conditions
Benefits under Sec 80C and Sec 10(10D) are available only if the
premium payable in any year is not more than 20% of
Sum Insured. Also, the benefit under Sec 80C is available if you are the
Insured Person and Policy Owner or you being the Policy
Owner paid the money for Insured Person who is either your spouse or
child.

SWITCHES

Change your Plan if your needs change

Wealthsurance is designed to meet your changing savings, investment
and insurance needs. You can make changes to your Plan if your needs
change. Wealthsurance is thus a flexible plan which can meet your
needs, without the need to have new plans.

When your wealth-building plans change

Your needs and requirements may change over time and so should your
Wealthsurance Plan. You may have the following situations:
• You are not able to pay the premiums you have committed to pay.
• You wish to build more wealth and want to pay more premiums.
• You wish to change the way your premiums are invested.

Your Plan gives you flexibility in the following ways:

A. Non-payment of Basic Premiums

There could be times when you are not able to pay premiums as
planned. We give you the flexibility to skip payment of premiums and
yet enjoy all the insurance benefits, provided that you have paid
premiums for at least three years.
After payment of premiums for at least three years, if you wish to take
a break from payment of premiums, you can skip payment of
premiums. Life and Terminal Illness Cover as also other Optional
Insurance Benefits will continue and charges will be collected as
applicable. You can revive the Plan within two years by paying all due
premiums, failing which your Plan will be terminated and you will be
paid the Surrender Value. If you wish your Plan to continue even after
the revival period without payment of premiums, you can apply to us
and we may agree at our discretion and subject to our underwriting
requirements.
After three years, if on a monthly policy anniversary during the time
you have not paid premiums, your Surrender Value is estimated to fall
below the Annual Regular Premium Amount, your Plan will be
automatically terminated and you will be paid the Surrender Value,
subject to a minimum value of one Annual Regular Premium Amount.

Non-payment of Premiums in the first three years

In the first three years, if you fail to pay premiums within 30 days from
the due date, your life insurance cover and other optional insurance
benefits will be suspended immediately and collection of mortality
charges and charges for optional insurance benefits will also cease.
You can, however, revive the Plan at any time within two years from the
date of first non-payment by paying all the due premiums. Upon revival,
your insurance benefits will be reinstated, subject to underwriting. If
you fail to revive within two years, the Plan will be automatically
terminated and you will be paid the Surrender Value, at the end of the
revival period or expiry of three years from plan commencement,
whichever is later,

B. Build more wealth by paying more premiums

You can contribute additional premiums into your Wealthsurance
Plan to build more wealth by contributing Top-up Premiums.
You can also apply to us to increase your Regular Premium amount or
term. Increase in premium is subject to meeting the requirement of
minimum Sum Insured under the Plan.
Any increase in Sum Insured is subject to underwriting.
C. Change your Investment Options
Your investment preferences may change over time. You can change
the mix of your investment options in the following two ways:
• Premium Redirection, which changes the way your future premiums
are invested. There is no charge for changing your Premium
Redirection.
• Switches which allow you to shift your investment, from one
investment option to another investment option. There are no charges
for switches. However, IDBI Fortis reserves the right to introduce Switch
Charges not exceeding 2.5% of the amount switched, with the prior
approval of IRDA.

When your insurance needs change

Over time, your insurance needs may also change.
Wealthsurance allows you to increase or decrease the amount of
insurance benefits and to add or remove optional insurance benefits.
Any increase in benefits is subject to acceptance after underwriting.
Any reduction is subject to minimum levels as required by the Plan
being maintained.

Create Exclusive Funds for loved ones

A useful feature under Wealthsurance is that you will be able to create
exclusive funds for the benefit of your loved ones which you can be
sure no one will be able to access. These funds are legally protected
from creditors and claimants on estate such as legal heirs, parties to
disputes or creditors.

Married Women’s Property Act

Under Sec 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 face of
the policy, it shall be deemed to be a trust for the benefit of the named
beneficiaries and it shall not be subject to the control of the husband or
his creditors or form the 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.
Set up Wealthsurance Plan for your loved ones
You can ask for endorsement of your Wealthsurance Plan for the benefit
of your wife or children or any combination of them under the Married
Women’s Property Act. You can also indicate the percentage share of
each of them in the Plan. Once endorsed, the Plan will be exclusively for
the benefit of the named beneficiaries.

IDBI FORTIS

Bondsurance
IDBI Fortis Bondsurance Plan

Invest Rs 1 lakh and get Rs 1.847 lakhs after 10 years, plus life
cover.(For a person in age band of 8-32 years. Maturity amount
varies depending upon age and term.)
Guaranteed return on your investment with life insurance.
Plus Tax Benefits under Sec 80C & Sec 10(10D)

Bondsurance is a single premium plan where you need to make a one-

time investment. You can choose a maturity period of 5 or 10 years. At
the end of the chosen period, you will receive a guaranteed maturity
amount. In case of death before the maturity date, a Death Benefit
which is also guaranteed will be paid. Thus you can get life insurance
cover while earning an assured return on your investment. The
premium you pay is eligible for deduction of tax under Sec 80C of the
Income Tax Act. Also, the Maturity Benefit and the Death Benefit are
tax-free under Sec 10(10D) of the Income Tax Act.

1. Guaranteed Maturity Amount gives you an assured

return
Choose your Maturity Benefit and Maturity Period. And pay a single
premium.
Bondsurance gives you guaranteed returns. You have to choose (a) the
Maturity Benefit, and (b) the Maturity Period. Based on your choice, the
investment you have to make by way of single premium is determined.

Maturity Benefit: You can choose any amount as the Maturity Benefit.
The amount you choose is guaranteed and will be paid to you on the
maturity date.

Maturity Period: You can choose the Maturity Period, which can be
either 5 or 10 years. The Maturity Period is the policy term of your
Bondsurance Plan.

Single Premium Amount: You have to make a one-time investment

by way of a single premium. The single premium amount is based on
your choice of Maturity Benefit, Maturity Period and the age of the
Insured Person in completed years as on the date of application, as per
the Premium Table below. Minimum single premium payable is Rs
20,000. There is no maximum limit.
 PREMIUM TABLE
Age of Premium per Rs 1,000 of Maturity Benefit
Insured
Person (in Maturity Period Maturity Period
complete 5 years 10 years
d years)
8-32 Rs 778.98 Rs 555.28
33-37 Rs 785.91 Rs 567.16
38-42 Rs 797.78 Rs 583.98
43-47 Rs 819.56 Rs 625.56
48-52 Rs 861.13 Rs 700.78
53-55 Rs 936.36 Not Available

The above premiums are exclusive of service tax and education cess,
which are payable in addition. Premiums may be revised, based on
market conditions

Discount on Single Premium Amount: If you choose a Maturity

Benefit of Rs 1, 50,000 or higher, you will also get a discount on the
single premium amount as per the Discount Table below. The discount
will reduce the single premium payable and increase your effective
return.

DISCOUNT TABLE
Maturity Discount for 5- Discount for 10-year Maturity
Benefit year Maturity Period
Period
Rs 2% 3.5%
1,50,000
 to Rs
3,99,999
Rs 2.5% 4.5%
4,00,000
to Rs
9,99,999
Rs 3% 5.25%
10,00,000
and
above

Discount rate applies on the premium as per the Premium Table.

Service tax and education cess are payable on the single premium
amount after discount.

Examples
(a) You would like to receive Rs 1 lakh as Maturity Benefit after 5 years
and you are 30 years old. You will need to pay Rs 77,898 as single
premium plus Rs 802 as service tax and education cess. It translates to
an effective tax-free annual return of 4.91% on your investment. You
will also get a life insurance cover of Rs 3, 89,490.

(b) You would like to receive Rs 10 lakhs as Maturity Benefit after 10

years and you are 30 years old. You will need to pay Rs 5, 26,128 as
single premiums, after a discount of 5.25%, plus Rs 5,419 as service tax
and education cess. It translates to an effective tax-free annual return
of 6.52% on your investment. You will also get a life insurance cover of
Rs 26, 30,639

2. Life Insurance Cover provides protection

Ensure financial security of the family in the case of
unfortunate death.
Besides giving assured returns, Bondsurance also provides a life
insurance cover. While the emotional loss of death can never be made
up, the life insurance cover ensures that the financial security of loved
ones is taken care of.

Death Benefit: In the unfortunate event of death of the Insured Person

before the maturity date, a Death Benefit equal to five times the single
premium amount will be paid. The Death Benefit (which is the Sum
Insured) is guaranteed. The Plan will terminate upon the payment of
Death Benefit.

Insured Person: You can take the policy on yourself or any other
person in whom you have insurable interest. The person on whom you
take the policy is the Insured Person. If you take the policy on yourself,
the Death Benefit will be paid to your nominee in the unfortunate event
of your death. If you take the policy on another person, you as the
owner of the policy will receive the Death Benefit if the Insured Person
dies before the maturity date. You will also receive the Maturity Benefit
on the maturity date if the Insured Person survives (except in the case
of a minor as given below).

Minor as Insured Person: You can also take the policy on a minor as
the Insured Person. In the case of a minor, the Bondsurance Plan will
vest in the minor upon attaining majority. In that event, the Maturity
Benefit will be paid to the minor who has attained majority.

Exclusions: If the Insured Person, whether sane or insane, commits

suicide within 12 months from the commencement of the plan, only the
single premium amount will be refunded. If the Insured Person is a
minor, life cover will commence after two years from plan
commencement or upon attaining majority, whichever is earlier. In case
of death during that period, only the single premium amount will be
refunded.

3. Tax Benefits incentives you to get protection with

assured returns
Tax Benefits enhance your returns and reward the financial
security of insurance.
Bondsurance is designed to give you attractive tax benefits.
Bondsurance gives you two benefits under the Income Tax Act, Sec 80C
and Sec 10(10D).

Deduction under Sec 80C: Your investment in Bondsurance is eligible

for deduction under Sec 80C of the Income Tax Act up to the limit of Rs
1, 00,000 (along with other eligible investments). Thus you save
income-tax when you invest in Bondsurance.

Tax-free Benefits under Sec 10(10D): The Maturity Benefit and also
the Death Benefit are tax-free under Sec 10(10D) of the Income Tax
Act, without any limit. There is also no tax deduction at source. Thus
your investment grows in Bondsurance, free of any tax impact.
The benefits above are as per present tax laws. Please note that tax
laws may change from time to time. You are also advised to consult and
be guided by your tax advisor.

4. Surrender facility and loan eligibility provide

liquidity before maturity
In case of financial need, premature surrender is available.
Banks can also give loans against Bondsurance at their
discretion.
Bondsurance also provides liquidity before maturity.

Surrender: After one year, you have the option to prematurely redeem
your Bondsurance Plan by surrender. You will receive Special Surrender
Value, which will be announced by us from time to time. It will,
however, never be less than 80% of your single premium amount.

Loan: IDBI Fortis does not offer a loan facility against this plan.

Loan Eligibility: Banks may accept Bondsurance as collateral to give

loans. The loan is, however, entirely at the discretion of the bank, and
the terms and conditions as determined by the bank. At your request,
we can register an assignment to provide collateral to the bank.

5. Simple and convenient process

Hassle-free sign-up.
The process to buy the Bondsurance Plan is very simple and
convenient.
For Sum Insured equal to or less than Rs 5 lakhs, you may be eligible
for a non-medical life insurance cover and all you need to do is simply
filling in the proposal form along with the necessary documents.
For Sum Insured greater than Rs 5 lakhs, you will need to complete our
Full Personal Health Statement form in addition to the proposal form
and undergo a medical test, if required. Issuance of the Bondsurance
Plan is subject to our underwriting guidelines.

Eligibility conditions for Bondsurance

Minimum Age at 8 years (For a term of 10 years)

entry(as on last 13 years (For a term of 5 years)
birthday)
Maximum Age at 50 years (For a term of 10 years)
entry(as on last 55 years (For a term of 5 years)
birthday)
Maximum Age at 60 years
maturity
Minimum Single Rs 20,000
Premium
Minimum Sum Assured Rs 1,00,000
Maximum Single No limit, subject to underwriting
Premium and Sum
Assured

IDBI FORTIS

Homesurance
Complete protection for your home loan.
Why HomesuranceTM?
You have planned for your home with great detail.
You searched for it extensively. You selected the area keeping in mind
the convenience to you and your family. Finally, you arranged the loan
to make the purchase.
Truly, your home is your best gift to your family.
Just imagine what would happen if due to an unfortunate event, you
were not around. The entire burden of your home loan will have to be
borne by your family.
But you can ensure that they inherit a home and, not a home loan.
We understand the importance of protecting your home loan and the
powerful IDBI Fortis Homesurance Plan can help you insure your home
loan at a reasonable cost.
The Plan is bought to you by IDBI Fortis Life Insurance
Company Limited, a joint venture between India’s premier development
& commercial bank, IDBI,
European banking & insurance giant, Fortis and the tech savvy private
sector bank, Federal Bank.

What is the IDBI Fortis HomesuranceTM Plan?

Homesurance is a mortgage reducing term plan which offers protection
to your home from your home loan. The Plan provides a cover equal to
the outstanding balance#1 of your home loan against any unfortunate
events that may occur to you.

What are the benefits of HomesuranceTM?

Protection against loan liability
Homesurance covers your life for an amount equal to your home loan
liability as per your home loan schedule. In case of an unfortunate
event of expiry of the insured the outstanding balance#1 amount is
paid to his nominees who may then settle the loan liability.
Cover for terminal illness
A unique feature of IDBI Fortis Homesurance Plan is that it pays an
accelerated payment of death benefit upon diagnosis of terminal
illness#2. This helps you to settle the home loan liability should an
unforeseen terminal illness occur.

What is the optional insurance benefit?

During the tenure of your loan, unforeseen events like accidents,
Hospitalization and major diseases could affect your finances.
For protection against such tribulations, you may opt for optional
insurance benefits from the Insurance Basket as an addition to your
Homesurance base plan.
The optional insurance benefit is available only with the Regular
Premium Plan. You need to pay additional premiums for the term of the
optional insurance benefit depending upon the sum insured chosen.

With Homesurance Regular Premium Plan, you can choose for optional
insurance benefit such as:

I. Accidental Death and Disablement Benefit

Accidental Death and Disablement Benefit is payable if the
Insured Person dies or suffers permanent disablement due to an
accident. The accident can be of any type of injuries as described in the
Accidental Disablement Table. Refer to the Insurance Basket brochure
for details.

II. Accidental Death Benefit

The Accident Death Benefit is paid if the Insured Person dies from
a bodily injury due to an accident.

III. Hospital Cash Benefit

At times you may require hospitalization due to Illness or accidents.
Hospitalization can be a huge drain on finances, especially if you have
to also pay the committed home loan EMI.
The Hospital Cash Benefit can help you ease your hospitalization
expenses burden.
Hospital Cash gives you three benefits:
(a) Daily Cash Allowance
(b) Recovery Allowance
(c) Additional allowance if I.C.U. treatment is required.

IV. Major Diseases Benefit

The Major Diseases Benefit covers 17 major diseases#3 and surgical
procedures. In case you are diagnosed with any of the specified major
diseases, you will receive a lump sum benefit which can be used for
treatment or may assist in paying off your loan. The basic policy plan
will continue even after paying off the Major
Diseases Benefit.
Major Diseases Benefit
• Covers 17 major diseases
• Policy continues even after benefit sum insured is paid
• Lump sum paid on the diagnosis of disease
• Tax deductions u/s 80D

V. Waiver of Premium Benefit on Total and Permanent

Disablement
In the event of total and permanent disablement of the Policy
Owner, the future regular premiums are waived and treated
as paid.
The above-mentioned points are brief descriptions of the optional
insurance benefits. Before you buy, we suggest that you refer to the
detailed Insurance Basket brochure for complete details like exact
coverage, the waiting period and exclusions.
What are the premium paying options?
Homesurance offers flexible premium paying options for your
convenience. You can choose to pay your premium by:
• Single Premium
• Regular Premiums
The Regular Premium option has a limited term which is 2/3 rd of your
loan term rounded off to the lowest integer. This facility allows you to
get over your liability of paying premiums quickly.
Mode: The Regular Premium can be paid in monthly, quarterly, half-
yearly or annual modes. The premium for frequencies other than annual
mode is the annual premium multiplied with the frequency factor.
Frequency factor is 0.51 for semi-annual, 0.26 for quarterly mode and
0.09 for the monthly mode.

Small cost, big protection

The IDBI Fortis Homesurance Plan is a mortgage reducing term
assurance. Hence it covers your entire home loan for a small cost

Home Home Home

Loan Cover Loan Cover Loan Cover
Rs 10 lakhs Rs 10 lakhs Rs 10 lakhs
Policy term 15 yrs 20 yrs 25 yrs
Single Rs 17,797 Rs 24,434 Rs 32,801
Premium
Regular Rs 2,295 Rs 2,564 Rs 3,033
Premium

The premiums for you may vary upon your age, gender, term of the
policy and loan details. The issuance of the policy is subject to
underwriting and premium rates may increase as a result of medical,
occupation or residential risks. The above-mentioned premiums do not
include service tax and cess.
What are the tax benefits?
The premiums that you pay are eligible for tax deductions under
Sec 80C and death benefits or claims are tax free under Sec
10(10D) of Income Tax Act, 1961 and are subject to changes in the tax
laws from time to time. For applicability of current tax benefits, please
consult your tax advisor.

Who can apply for HomesuranceTM?

Application criteria Male Female

Minimum age at 18 yrs 18 yrs

entry

Maximum age at 60 yrs 60 yrs

entry

Maximum age at 70 yrs 70 yrs

which
Cover ceases

Minimum Term 5 yrs 5 yrs

Minimum Sum Rs 1,00,000 Rs 1,00,000

Insured
Maximum Sum Rs 2,00,00,000 Rs 2,00,00,000
Insured
Frequently asked questions?
Q. What if my home loan interest rates increase post the issuance of
the policy?
A. We at IDBI Fortis believe in offering complete solutions. In the
IDBI Fortis Homesurance Plan, your home loan cover will not fall short of
the actual home loan. The IDBI Fortis Homesurance Plan will cover
whatever is your outstanding home loan#1 amount even if it has
increased due to a rise in the interest rates, provided you have not
taken any additional drawdown on the loan or increased the term of the
loan or missed out any EMI payment.

Q. What if my home loan interest rates decrease after the issuance of

the policy?
A. IDBI Fortis Homesurance Plan pays you a death benefit which is the
higher of the outstanding loan amount or the amount as per the policy
schedule. If the interest rates decrease, your outstanding loan amount
will decrease. In this scenario, in case of the unfortunate expiry of the
Person Insured, we will pay your nominee the amount as per the policy
schedule which will be higher than the outstanding loan.

Q. If my house is in the construction phase, am I covered?

A. Yes. If your bank has extended a loan, you can be covered by
Homesurance even when your house is in the construction phase. We
allow a maximum 3 years construction phase. Your loan term should be
greater than 15 years and the term of your policy will be the
construction term plus loan term. In the construction phase, you will be
covered for the entire loan amount irrespective of the disbursal
schedule in the construction phase.
Q. What if I transfer my loan to another home loan company?
A. To enjoy the full benefit of the IDBI Fortis Homesurance Plan, we
would recommend that you do not transfer your home loan to a
different loan company. However, if you want to transfer the home loan
we will continue to cover you only for the amount mentioned in the
original policy schedule.
Q. Will Homesurance covers floating rate loans as well as fixed rate
loans?
A. Yes. Homesurance is designed to cover your outstanding loan even
as the floating rate rises or falls, provided you have nottaken any
additional drawdown on the loan or increased the term of the loan or
missed out any EMI payment.
Things you must know
#1 outstanding balance
The outstanding balance means the lesser of the actual balance of the
mortgage loan and the calculated mortgage loan account balance at
the date of death _
• assuming that a minimum of all stipulated mortgage loan installments
had been paid on their due dates,
• excluding any drawdowns other than the original sanctioned loan
amount,
• Subject to a maximum of the initial sum insured shown in the policy
schedule,
• Provided that if the original sanctioned loan amount was greater than
the initial sum insured, the outstanding balance at any time will be
reduced by the proportion that the excess of the original sanctioned
loan amount over the initial sum insured bears to the original
sanctioned loan amount and

• provided further that if the term of the original sanctioned loan is

greater than the term of this policy, the outstanding balance at any
time will be further reduced by the proportion that the difference
between the term of the original sanctioned loan and the policy term
bears to the term of the original sanctioned loan.
#2 Terminal illnesses
We pay Terminal Illness Benefit if the Insured Person is diagnosed as
terminally ill and is expected to live for not more than six months. We
may require the diagnosis to be made by a specialist medical
practitioner appointed by us.
The Terminal Illness Benefit paid is the sum insured applicable as per
your policy schedule on the date six months following the date of
payment of Terminal Illness Benefit, subject to a maximum of Rs 25,
00,000.
After a Terminal Illness Benefit is paid
• We will advance the policy expiry date to the end of the first
remaining policy year where the sum insured shown in the policy
schedule is greater than or equal to the Terminal Illness Benefit.
• We will reduce the sum insured shown in the schedule for each
remaining policy year by the amount of Terminal Illness
Benefit paid.

• On the death of the Insured Person before the advanced policy expiry
date, we will pay the reduced sum insured.
• For a Regular Premium policy the premiums will continue till the
advanced policy expiry date.
Exclusions:
Suicide exclusion
• No benefits will be paid if the Insured Person, whether sane or insane,
commits suicide within 12 months from the date of commencement of
this policy.
• The Terminal Illness Benefit will not be paid for any claim resulting
from the Insured Person, whether sane or insane, attempting suicide or
intentionally inflicting self injury.
#3 Major Diseases Benefit
The Major Diseases Benefit covers 17 major diseases namely:
1. Heart Attack (Myocardial Infarction)
2. Coronary Artery By-pass Graft
3. Heart Valve Replacement
4. Surgery for a Disease of the Aorta
5. Cancer
6. Stroke
7. Kidney Failure
8. Major Organ Transplant
9. Paralysis
10. Coma
11. Multiple Sclerosis
12. Alzheimer’s Disease (before age 61)
13. Parkinson’s Disease (before age 61)
14. Benign Brain Tumour
15. Major Head Trauma
16. Major Burns
17. Primary Pulmonary Arterial Hypertension
For exact definition of diseases and details, please refer to
InsuranceBasketTM.
15-day free looks period
You are entitled to a free look period of 15 days from the time that you
receive this policy. If before the end of this time you do not wish to
continue this policy, then you may write a letter requesting us to cancel
it. We will refund you the premium less proportionate mortality and
rider charges for the cover we have provided you during that time. We
will also deduct any expenses, medical examination costs and Stamp
Duty charges incurred by us for your policy.
Grace period for lapsed policies
For Regular Premium policies, we allow a grace period of 30 days, after
30 days period the policy will lapse and no benefits will be payable.
Reinstatement
For Regular Premiums if this policy has lapsed, you may apply to the
Company within two years of the date of lapse to reinstate the policy.
However, acceptance of risk is not guaranteed and will be subject to
underwriting and on terms & conditions to be quoted by the Company
at that time.
Paid-up Value
This policy has no Paid-up Value.
Loans
This policy has no Loan Value.
Without Participation in Profits
This policy does not participate in the surplus earnings of our policy
owners’ fund.
Surrender Value
Regular Premium policy has no Surrender Value. For Single
Premium, Surrender Value is provided on a reducing basis as
a percentage of initial Single Premium.

IDBI FORTIS

Retiresurance
IDBI Fortis Retiresurance Pension plan

Gift yourself a monthly paycheque for life after retirement

Ensure the good times continue, even after you retire

Vacation to a tropical island, pursuing your hobby or flying abroad to be
with your family and friends. Whatever may be your idea of having a
good time, the one thing common to all, is that it requires money.
The earlier generations may not have had a formal retirement plan, but
they had relatively fewer consumption needs. It was rare to find people
who had shifted through several jobs in the course of an active career.
As a result, pensions and gratuities issued by their employers were
deemed sufficient. Times have changed now, and in most contemporary
industries, few employers provide for a lifelong pension.
This is coupled with the high incidence of lifestyle diseases like
diabetes, blood pressure and heart problems. The improved medical
technology has increased longevity, but along with it the cost of
healthcare has increased manifold.
Thus managing finances during retirement would be extremely tough, if
one hasn’t planned for retirement. The best way to enjoy the good
times in your golden years would be, to build your finances in advance
for retirement.
IDBI Fortis Retiresurance Pension Plan is an effective instrument that
will help you achieve this objective. It not only allows you to
conveniently save for the golden years but also offers you a wide choice
of investment options to grow and multiply your wealth. The Plan is
extremely flexible and offers several choices so as to suit your savings
habit and investment risk preferences.
The IDBI Fortis Retiresurance Pension Plan can thus be your ideal
investment partner in ensuring a happy retirement.

KEY BENEFITS AT A GLANCE

A. MULTIPLE OPTIONS TO SUIT YOUR CONVENIENCE

The IDBI Fortis Retiresurance Pension Plan allows you to choose the
amount, frequency of payment and payment term for your Plan. It also
has the flexibility of reducing the premiums or adding additional top-up
premiums when you desire, so that you can contribute in a flexible way
that suits your savings habit.

B. CHOICE OF INVESTMENT OPTIONS TO BUILD YOUR

RETIREMENT CORPUS
Choose from a range of investment options to match your investment
style and grow your retirement corpus. We offer:
• Investment options for equity-linked returns, which seek to invest in
listed stocks and aim to generate high returns with high risks.
• Investment options for stability and security, which aim to offer stable
returns with low risks.

You have the complete flexibility to change your investment options,

from time to time. You may use the flexibility to take advantage of
market conditions.

C. FLEXIBILITY TO MODIFY THE PLAN TO MEET CHANGING

NEEDS
Your investment style and need for particular investment options may
change over time.
You may also want to take advantage of favorable market conditions.
To give you complete flexibility to modify your Plan as per changing
needs, IDBI Fortis Retiresurance Pension Plan allows you to:
• Switch among investment options or change your future premium
allocations, as many times as you require, free of cost.
• Get liquidity through partial withdrawals and surrender.
• Choose your vesting date (date when you want to start your
retirement benefits) any time between ages 40 and 75.
• You also have the flexibility to propone or postpone your vesting
date.

D. GUARANTEED LOYALTY ADDITIONS TO BOOST YOUR

RETIREMENT SAVINGS
IDBI Fortis Retiresurance Pension Plan boosts your funds through
Guaranteed Loyalty Additions at the end of specific terms to reward you
for making long-term investments. The loyalty additions help you to
grow your wealth faster.
E. TAX BENEFITS TO HELP YOU GROW WEALTH FASTER1
• Tax savings under Sec 80CCC.
• One third of the retirement corpus can be commuted tax-free on
vesting under Sec 10(10A).

How does the Plan work?

The IDBI Fortis Retiresurance Pension Plan works as follows:
Step 1: You select the amount of premium and the number of years for
which you wish to pay towards building a retirement corpus. You can
choose from a range of convenient payment options tailored to meet
your savings preferences.
Step 2: You can choose funds to build your wealth, based on your risk
and returns expectations. Your premiums will be invested in the funds
which you choose, post the deduction of applicable charges, and you
will receive units for the respective funds.
Step 3: You may switch among investment options to suit your
changing needs or to benefit from shifts in the market conditions.
Step 4: On retirement, you can use the accumulated fund value

Eligibility criteria
The eligibility criterion for investing in the IDBI Fortis Retiresurance
Pension Plan is as follows:
Age at Minimu 18 years
entry m
Maximu 70 years
m
Vesting Minimu 40 years
age m
Maximu 75 years
m
Policy Minimu 5 years or (40 less age at entry)
term m
 Maximu 75 less age at entry
m
Premium Minimu 3 years
payment m
Maximu Policy term
term
m
Premium Minimu Rs 10,000 (Rs 1,000 for monthly mode)
m
Maximu No limit
m

Plan features

Policy Term
You have the option of choosing the policy term on the commencement
of the policy. You can choose to propone or postpone the vesting date
as many times as required within the limits of the Plan. The following
limits will apply:
• Your age on the vesting date should be at least 40 and not more than
75. • Regular premium for first three years has to be paid. • The revised
vesting date cannot be prior to the completion of the fifth policy year.
You must inform us at least 30 days in advance if you want to propone
or postpone the vesting date.

Flexible premium payment options

IDBI Fortis Retiresurance Pension Plan allows the following premium
payment options:
• Regular Premiums
You can choose the amount of premium you wish to pay. The premium
payment term may also be selected as per your preference. The
minimum premium payment term is 3 years and maximum payment
term can be the whole policy term of the Plan.
• Top-up Premiums
Over and above the regular premiums, you can pay top-up premiums
whenever you want, and any number of times. Top-up premiums help
you to increase your retirement savings and grow wealth faster.

Flexible options to pay your premium

• Premium Payment Options you can pay your premiums through
cheque, demand draft, ECS, direct debit, and standing instructions.
• Premium Payment Frequency you can choose to pay your premiums
annually, half-yearly, quarterly, or monthly. There is no extra modal
loading for payment in half-yearly, quarterly, or monthly modes.

Flexibility to reduce the premium

There are times when you may be unable to meet your premium
commitments, especially during long premium payment tenures. For
support in times such as these, and appreciating the benefits of
keeping your policy active, we offer a unique facility of reducing your
premiums.
You have the flexibility to reduce future annual premiums after
completion of the first policy year. The reduced annual regular premium
in the second and third years must be at least 75% of the premium for
the first year, and not less than Rs 10,000. The premium reduction can
be effected only at the beginning of a policy year. To avail the facility of
premium reduction, you have to inform us in writing at least 15 days
prior to the beginning of the policy year for which premiums are to be
reduced.
However, you should know that reducing your premiums may lower
your returns. Hence, we recommend that you should avoid the use of
premium reduction facility.

Premium allocation rate

Your premium will be allocated to the funds of your choice, post
deduction of the premium allocation charge. The premium allocation is
as follows:

First year premium allocation rate

Amount of regular premium First year premium allocation
(per year)
≤ Rs ,99,999 85.00%
Rs 1,00,000 - Rs 4,99,999 87.50%
Rs 5,00,000 and above 90.00%

Renewal premium allocation rate

Policy year Allocation
2 to 4 97%
5 to 9 99%
10th year onwards 100%

Benefits under the Plan

Your benefits on vesting:
On the vesting date, you have the following options:
i. to receive up to one third of the fund value, in lump sum and utilize
the balance amount to purchase an annuity from IDBI Fortis or any
other annuity provider, or
ii. to utilize the entire fund value, to purchase an annuity from IDBI
Fortis or any other annuity provider.

Benefits payable on death:

In the event of death of the Insured Person on or before the vesting
date, we will pay the nominee the fund value held in the various funds
on the acceptance of the death claim and the policy will terminate.
The nominee can also opt to use the fund value to purchase an annuity
from the options available with us or any other annuity provider. The
nominee may also choose to receive part as lump sum and utilize part
to purchase an annuity.

Tax benefits available:

• Tax savings under Sec 80CCC up to Rs 1, 00,000 • One third of the
retirement corpus can be commuted tax free on vesting under Sec
10(10A)

IDBI Fortis Investment Basket: Tools for building your wealth

The power of IDBI Fortis Retiresurance Pension Plan is provided by the choice of investment options it
offers. They give you great flexibility in how you build and manage wealth. We offer specific funds
from the IDBI Fortis Investment Basket. You can choose one or more options based on your return
expectations and risk tolerance. You can also switch and change your investment options, from time
to time, as you wish.
The funds offered from the IDBI Fortis Investment Basket are open-ended funds which invest in
equity, debt, or money-market as per their investment objective. The Net Asset Value (NAV) of each
fund is published on a daily basis. You can invest your premiums into, switch into, or switch out of any
fund at any time at the NAV. Your gain or loss is the difference between the value at which you
invested and the value at which you exited. The NAV depends on the market value of the underlying
investments. The expected return and risk vary by the fund. We offer the following funds:

Investment options for equity-linked returns

Fund Investment Investment
Objective Pattern
1. Equity Seeks to invest Fixed Income 0 – 50%
Growth Fund in listed stocks Investments 50 – 100%
Risk: High and aims to including Cash
generate high and Money
 returns by Market
picking stocks Equities and
that have Equity-linked
growth instruments
prospects. It
aims to
diversify risk by
investing in
large-cap as
well as mid-cap
stocks and
across multiple
sectors.
2. Nifty Index Nifty Index Fixed Income 0 – 20%
Fund Fund invests in Investments 80 – 100%
Risk: High Nifty stocks including Cash
and aims to and Money
track the index Market
as closely as Equities and
possible. Equity-linked
instruments

Investment options for stability and security

3. Bond Fund Seeks to invest Fixed Income 100%
Risk: Medium in fixed income Investments
investments including Cash
and aims to and Money
 generate Market
returns from
interest
coupons and
opportunities in
changing yield
curve. The
duration of the
underlying
portfolio may
be high or low
depending upon
the market
conditions.
4. Income Fund Aims to Fixed Income 100%
Risk: Low generate a Investments
return by including Cash
seeking to and Money
invest in fixed Market
income
investments
that carry low
or medium
market risk.
5. Liquid Fund Seeks to invest Money Market, 100%
Risk: Low in overnight Cash and Short-
money and term debt
other money
 market
instruments.

Minimum allocation to a fund: Minimum amount of premium

direction or redirection in any investment fund should be at least 15%
of the annual premium.

Unit Price Formula: Calculation of unit price for a unit-linked fund

depends on whether that fund has net creations or redemptions on the
valuation date. Net Asset Value for each unit is determined as: Market
value of investments plus expenses incurred in purchase of assets (if
the fund has net unit creations) or less expenses incurred in sale of
assets (if the fund has net unit redemptions) plus value of current
assets plus accrued income net of management charges less current
liabilities less provisions, divided by the number of units on issue.

Investment Guidelines: All segregated funds will be managed,

subject to compliance with applicable statutory regulations and
guidelines. At present, investments in other than approved securities
(including third-party mutual funds) cannot exceed 25%. All of the funds
will also trade in derivatives, invest in third-party funds, or engage in
short selling to the extent permitted by applicable regulations.

Fund Management Charges: Fund Management Charges are 2% p.a.

for Equity Growth Fund, 1.75% p.a. for Nifty Index Fund, 1.5% p.a. for
Bond Fund, 1.25% p.a. for Income Fund and 1% p.a. for Liquid Fund. We
reserve the right to increase charges for any fund by up to 0.75% p.a.,
with prior approval of IRDA. The fund management charges cannot
exceed 2.75% p.a. for Equity Growth Fund, 2.50% p.a. for Nifty Index
Fund, 2.25% p.a. for Bond Fund, 2.00% p.a. for Income Fund, and 1.75%
p.a. for Liquid Fund.
New Funds: IDBI Fortis will introduce new funds from time to time to
meet the changing needs of investors, market conditions and regulatory
environment. Similarly, old funds may be withdrawn or merged.

Guaranteed Loyalty Additions to boost your retirement savings

IDBI Fortis Retiresurance Pension Plan boosts your funds through

Guaranteed Loyalty Additions at the end of specific policy years to
reward you for long-term investments.

Completed Policy Years Guaranteed Loyalty Units

10 years Extra units of 3.0% of the fund
value
15 years Extra units of 3.5% of the fund
value
20 years and every five years Extra units of 4.0% of the fund
thereafter value

Loyalty units will be a percentage of the average fund value in the last
36 months preceding the loyalty unit allocation date and will be paid
provided all premiums are paid up-to-date and the policy has not yet
reached maturity. In case you have invested in multiple funds, the
guaranteed loyalty additions will be added to each fund in the same
proportion as the fund value in each fund bears to the total fund value.

Liquidity through withdrawals and surrender

IDBI Fortis Retiresurance Pension Plan allows you to build wealth over
the long term. At the same time, we recognize that you might have an
emergency need for funds before the maturity of the Plan. We offer
liquidity with
(a) Partial Withdrawals
(b) Surrender.

(a) Partial Withdrawals:

You can access your funds in case you need them before the vesting
age by making partial withdrawals, subject to the following restrictions:
• No withdrawals are permitted in the first three years.
• After three years, you can make withdrawals as follows:
– You can make withdrawals whenever you need and as many times as
you desire.
– Each partial withdrawal should be for a minimum of Rs 10,000.
When you withdraw, you must always leave as minimum balance the
higher of:
• The first year annual premium, and
• Top-up premiums paid in the past three years.

While there are no charges for partial withdrawals, you are requested to
check applicability of taxes on the amount withdrawn from your tax
advisor1.

(b) Surrender:
When you wish to terminate your Retiresurance Pension Plan before
vesting, you can surrender your Plan. The surrender value is the fund
value less the surrender charge. The surrender charge is a percentage
of the fund value according to the following table:

Completed policy years at the Surrender charge as a

date of surrender percentage of fund value
3 5%
4 2.5%
5 -
Notes: The IDBI Fortis Retiresurance Pension Plan has a lock-in period of
three years from the commencement date. We will not pay you a
surrender value until the completion of three full policy years.
There are no surrender charges after completion of the fifth year.
However, you are requested to check the applicability of taxes on the
surrender proceeds from your tax advisor1.

Terms and Conditions

1. Tax provisions
The tax provisions are as per Income Tax Act, 1961, and are subject to
change. You are requested to consult your tax advisor for details.

• Tax benefits under Sec 80CCC

You will be eligible for tax benefits under Sec 80CCC of the Income Tax
Act, 1961
– Under Sec 80CCC, premiums paid by an individual out of his income
chargeable to tax, to effect or keep in force a contract for an annuity
plan up to Rs 1,00,000 are allowed as a deduction each year.
– The amount received as surrender, partial withdrawals and as
pension, is chargeable to tax as income.

• Tax benefits under Sec 10(10A)

– Under Sec 10(10A), the tax benefits are on any payment in
commutation of pension received from a fund under Clause (23AAB) of
Sec 10.

2. Fund Value
Your fund value at any time means the value of all the units held under
your policy calculated by multiplying the number of units in each unit-
linked fund by the unit price of that unit- linked fund on the date of
valuation. The fund value is therefore the accumulated value of the
units held under the policy after adding new units purchased by
allocated premiums and allocated top-ups, and deducting units
cancelled to meet partial withdrawals, charges and taxes.

3. Service tax and other levies

Service tax and other levies, as applicable, will be levied as per the
extant laws.

4. Policy administration charge

A flat charge of Rs 60 per month will be deducted by cancellation of
units at the beginning of each month for administration of your policy.

5. Revision of charges
The premium allocation charges and surrender charges are guaranteed
and will not change for the entire duration of your policy.
However, after having taken prior approval from IRDA, we reserve the
right to:
• Increase the annual fund management charges by a maximum of
0.75%.
• Introduce a charge for switching not exceeding 2.5% of the amount
switched.
• Introduce a charge for partial withdrawal not exceeding 7.5% of the
amount withdrawn.

6. Non-forfeiture options:
• Grace period: The policy offers a grace period of 30 days from the
due date of premium payment. After the grace period, if due premium
is not paid, the policy will lapse.

• Revival period: You can revive the policy for up to 2 years by paying
all the due premiums up to the revival date. On the death of the Insured
Person during the revival period, we will pay a death benefit equal to
the fund value.

• Discontinuing your premiums: If you do not pay premiums due

within a grace period of 30 days, your policy will enter a revival period
which ends two years after the due date of the first unpaid premium. At
any time during the revival period, you may pay all the outstanding
premiums and we will then reinstate your policy.
If you do not pay all outstanding premiums within the revival period,
then at the end of the revival period, or at the end of the third policy
year if this is later, we will terminate your policy and pay you the
surrender value.
If you discontinue your premiums your policy will continue to participate
in the performance of the unit funds chosen by you, and we will
continue to deduct all applicable charges.

Continuation of policy without payment of premiums after paying

premiums for three years
If you have paid all regular premiums due for at least three full policy
years, and then discontinue your premiums, you may apply to us
before the end of the revival period to continue your policy without
payment of any further premiums. In this case, we will continue to
keep the policy in force and continue to deduct all applicable charges.

Termination if your fund value falls below one annual premium

If you have paid all regular premiums due for at least three full policy
years, and if at any time thereafter we calculate that your surrender
value at the end of the following policy

Month will be less than the first year annual premium; we will terminate
your policy immediately and pay you the surrender value, subject to a
minimum payment equal to one annual regular premium.
7. Risks of unit-linked products
Unit-linked pension products are different from traditional insurance
products and are subject to risk factors. Premiums paid in unit-linked
pension policies are subject to investment risks associated with capital
markets. NAVs of the units may go up or down, based on the
performance of fund and factors influencing the capital market, and the
policy owner is responsible for his/her decisions.

IDBI Fortis Life Insurance Company Limited is only the name of the
Insurance Company and IDBI Fortis Retiresurance Pension Plan is only
the name of the unit-linked pension contract and does not in any way
indicate the quality of the contract, its future prospects, or returns. The
various funds offered under this contract are the names of the funds
and do not in any way indicate the quality of these plans, their future
prospects and returns. Please know the associated risks and the
applicable charges, from your Insurance agent or the intermediary.

8. Nomination
• During your lifetime and while this policy is in force, you may at any
time by written notice to us, designate any person or persons as a
nominee to whom we shall pay benefits under this policy on your death.
• We will register a nomination in your policy schedule, or any change
in nomination by endorsing your policy and registering in our records
and we will acknowledge the change in nomination to you in writing.
• The receipt of policy benefits by a nominee shall be a valid discharge
of our liability. If on the date of death, there is no surviving nominee,
then we will pay the benefits to your estate or legal representatives.
• Nominations do not apply to any policy to which the Married Women’s
Property Act, 1974, applies or if you assign the policy.

9. Section 41: Prohibition of Rebate

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 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 punishable with a fine, which may extend to five
hundred rupees.

10. Section 45 of Insurance act: Non-Disclosure Clause

“No policy of life insurance effected before the commencement of
this Act shall, after the expiry of two years from the date of
commencement of this Act and no policy of life insurance effected
after the coming into force of this Act shall, after the expiry of two
years from the date on which it was effected, be called in question by
an insurer on the ground that a statement made in the proposal for
insurance or in any report of a medical officer or referee or friend of
the insured or in any other document leading to the issue of the
policy, was inaccurate or false, unless the insurer shows that such
statement was on a material matter or suppressed facts which it was
material to disclose and that it was fraudulently made by the
policyholder and that the policyholder knew at the time of making it
that the statement was false or that it suppressed facts which it was
material to disclose:
Provided that nothing in this Section shall prevent the insurer from
calling for proof of age at any time if he is entitled to do so, and no
policy shall be deemed to be called in question merely because the
terms of the policy are adjusted on subsequent proof that the age of the
life insured was incorrectly stated in the proposal.”

11. Free-look period

You are entitled to a free-look period of 15 days from the time that you
receive the policy document. Before the end of this time, if you do not
wish to continue the policy then you may write a letter requesting us to
cancel it. We will refund you the premium paid, subject only to a
deduction of Stamp Duty and other incurred charges. In this event, we
are entitled to repurchase the units at the price of the units on the date
of cancellation.

IDBI FORTIS

Incomesurance
IDBI Fortis Incomesurance Immediate Annuity

Gift yourself a monthly paycheque for life after retirement

IDBI Fortis Incomesurance Immediate Annuity

One of the best financial decisions that you can take today is to plan for
adequate income after retirement. The three key concerns during your
golden years will be increasing healthcare cost, higher life expectancy
and rising prices.
All you need is a steady flow of income which can take care of
all your concerns. Presenting the IDBI Fortis Incomesurance Immediate
Annuity which gives you guaranteed income throughout your life.

Key features of IDBI Fortis Incomesurance

Immediate Annuity
• Three annuity options to choose from
• Regular income commences as early as age 20 years
• Choose your annuity payment modes – monthly, quarterly, half-
yearly, or yearly
• Your annuity payments are credited directly to your bank account

How does the Plan work?

• Choose the one-time lump sum amount that you will pay for your
desired regular income
• Choose your payout option from the three annuity options. Select
your annuity payout modes – monthly, quarterly, half-yearly, or yearly
• Your regular income will correspondingly commence one month,
quarter, half-year, or a year after the date of payment of the lump
sum
• Receive your income through direct credit to your bank account

What are the annuity options?

• Lifetime annuity: You will receive a fixed income throughout your

life. The annuity installments stop in the event of your unfortunate
demise.

• Lifetime annuity with return of purchase price: You will receive

a fixed income throughout your life. In the event of your unfortunate
demise, your nominee will receive the lump sum amount used to
purchase the annuity.
• Lifetime annuity with a minimum guaranteed payment: You
can choose a minimum guaranteed term of 5, 10, or 15 years. We will
pay the annuity installments for the minimum guaranteed term and
after that, the payout continues along as you are alive. If the event of
your unfortunate demise during the fixed period, income is payable to
your nominee until the end of guaranteed term and then payments
cease.
On your survival of the fixed period, the payout continues as long as
you are alive. The annuity payouts stop in the event of your unfortunate
demise after the guaranteed fixed period.

How often can annuity installments be paid?

Minimum/Maximum purchase price Rs 1,00,000/No limit

Minimum/Maximum annuity Rs 1,000 per instalment/No limit
Minimum/Maximum age at entry 20/80 years (age at last birthday)
You can choose to have your annuity installments paid to you monthly,
quarterly, half- yearly, or yearly. The annuity rates we quote take into
account how often the installments are payable.

What are the eligibility requirements?

Is there a discount for large policies?
Yes, we offer better rates if the purchase price is more than Rs 2 lakhs,
and again if the purchase price is more than Rs 5
lakhs.

Terms and conditions

• The annuity rates are guaranteed for the lifetime of the annuitant.
• You are entitled to a free-look period for 15 days from the date of
receipt of the policy. If before the end of this time you do not wish to
continue the policy, then you may request us in writing to cancel the
policy. We will refund the purchase price paid by you after deducting
any annuity payments we have made. We will also deduct stamp duty
charges incurred by us in respect of your policy.
• No loan facility is available under this plan.
• There is no surrender value under this plan.
• Under the lifetime annuity with return of purchase price option, we
will pay a death benefit equal to the purchase price on the death of
the annuitant, even if this results from suicide.
• There are no exclusions in respect of occupational hazard and travel.
• Assignment is not allowed under this plan.
• Tax benefits will be available as per Section 80C of the Income Tax
Act, 1961, on the purchase price paid as per the prevailing tax laws.
All annuity payments may be subject to taxes as per the law prevailing
on the date of payment. For specific details, please contact your tax
consultant.
• The product does not participate in the surplus earnings of our policy
owners’ funds.
• Tax benefits are subject to change in laws from time to time.

Statutory information

Non-Disclosure
Sec 45 of Insurance Act states:
“No policy of life insurance effected before the commencement of this
Act shall, after the expiry of two years from the date of commencement
of this Act and no policy of life insurance effected after the coming into
force of this Act shall, after the expiry of two years from the date on
which it was effected, be called in question by an insurer on the ground
that a statement made in the proposal for insurance or in any report of
a medical officer, or referee, or friend of the insured, or in any other
document leading to the issue of the policy, was inaccurate or false,
unless the insurer shows that such statement was on a material matter
or suppressed facts which it was material to disclose and that it was
fraudulently made by the policyholder and that the policyholder knew
at the time of making it that the statement was false or that it
suppressed facts which it was material to disclose.
Provided that nothing in this Section shall prevent the insurer from
calling for proof of age at any time if he is entitled to do so, and no
policy shall be deemed to be called in question merely because the
Terms of the policy are adjusted on subsequent proof that the age of
the life insured was incorrectly stated in the proposal.”

Prohibition of rebate
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 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 punishable with a fine, which may extend to five
hundred rupees.

IDBI FORTIS

Termsurance
IDBI Fortis Termsurance Grameen Suraksha

IDBI Fortis Termsurance Grameen Suraksha

IDBI Fortis Termsurance Grameen Suraksha is a low-cost, simple term
individual insurance plan targeted at the rural population.
It is an ideal plan to protect your family members in the event of
unfortunate demise of the major income earner.
This is a non-participating single premium term insurance plan.

The key features of Termsurance Grameen Suraksha:

• Premium: You can choose a fixed single premium of Rs 49.08,

Rs 98.17, Rs 147.25 or Rs 196.33 according to your budget.
• Eligibility: This plan is available for men and women from age 18 up
to age 50.
• Term: This plan has a fixed term of three years.
• Death Benefit: In the event of unfortunate death of the insured
person during the policy term, we will pay a death benefit of Rs 5,000,
Rs 10,000, Rs 15,000 or
Rs 20,000 depending on the single premium paid.
• Suicide Exclusion: We will not pay any death benefit if the insured
person commits suicide within 12 months from the commencement
date of the policy.
• Maturity Benefit: This is a pure term insurance plan and this plan
has no maturity benefit.
• Surrender Benefit: This plan has no surrender benefit.
• Loan: This plan has no loan facility.

• Nomination: At any time before the expiry of the policy, you may
nominate a person to whom we will pay the death benefit. If the
nominee is a minor, you need to appoint a person to hold the benefit
until the nominee’s 18th birthday.
• Free Look Period: You are entitled to a free look period for 15 days
from the day you receive this policy. If before the end of this time you
do not wish to continue this policy, then you may request us in writing
to cancel the policy. We will refund the premium paid by you after
deducting a proportionate risk premium for the insurance cover we
provided to you during that time. We will also deduct any medical
examination costs and stamp duty charges incurred by us in respect of
your policy.
• Tax Benefits: Premiums paid are eligible for tax benefits under
Section 80C and death benefit is tax-free under Section 10(10D) of the
Income Tax Act, 1956.
 RESEARCH OBJECTIVE

• To analyze the awareness of insurance as investment avenue.

• To provide company important data that help them to make the strategies.

• To enhance the knowledge in the field of finance and in insurance sector.

• To resolve the various problems and find out the best possible solution that

enhances the conceptual skills.

• To give the information about company’s insurance plans to interesting people.

• To know the inherent needs of potential (existing) customer and make a good

meting that keeps relationship with company.

• To find out those factors that influences the company’s plan.

• To make an appropriate and accurate summer training report.

 RESEARCH METHODOLOGY

The approach to the research is considered in this chapter, from

the theoretical underpinning to the collection and analysis of the
data. It begins with the extent of the research to provide the
specific guidelines of studying. The next part is concerned with
the method of the research that refers to the data collection and
analyzing which is used in the research.

CONCEPTUAL CONTEXT OF THE RESEARCH

As the objective of the research, focuses on the search of potential

customer with special emphasis of IDBI LIFE INSURANCE. It will help
the company to increase its sales, which is prime objective of the
company at this time. The research attempts to generate awareness
among the people of GZB RAJ NAGAR regarding the IDBI LIFE
INSURANCE COMPANY.

METHODS
PRIMARY DATA
Data collection of this research was done primarily through filling up of
questionnaires. The sample for the research including different
individuals of various age groups and having different profession and
qualification. Data was collected through the interview of individuals.
The questionnaire was containing questions regarding the personal
details of individuals and then some light question regarding their
primary knowledge related to private insurance companies. Then
there were questions related to their interest in being the Insurance
plan of the company.

SECONDARY DATA

A large amount of secondary data has been collected from secondary

sources. Some of the sources are:-

♦ Report on Insurance sector of India.

♦ Articles from newspapers and magazines.
♦ Various web sites of the insurance companies and related sites.

DATA ANALYSIS

There are some features of analyzing data that need to be borne in

mind when choosing the method for analyzing the research. The
questionnaire was prepared to explore the psychology of individuals
about being associated with IDBI FORTIS LIFE INSURANCE as
potential customer. Instead of testing a hypothesis, a qualitative
analyst may demonstrate evidence showing that a theory,
generalizing, or interpretation is plausible.
SAMPLE SIZE

Various area of GZB RAJ NAGAR was covered in order to fill the
questionnaire. I interacted with 80 individuals in order to know about
their interest of being IDBI Life Insurance Plans.

Sample Size – 80

SAMPLE COMPOSITION

I. Youth
II. Executive
III. Serviceman
IV. Business person

RESEARCH DESIGN

A research design provides the frame work to be used as a guide in

collecting and analyzing data.

Descriptive Research: Market survey is one of the best examples of

descriptive research. This is a one shot research study at a given
point of time, and consists of a sample of the population of interest. Its
advantages are that it gives a good overall picture of the position at a
given time. It can cover many variables of interest, and is not affected
by the movements of elements in the sample, because other elements
can be substitute for them.

DATA ANALYSIS
After collection of data, the analysis of it was done through charts.

RESPONSE OF QUESTIONNAIRE

1. What is your full time profession?

a) Business -10 b) Govt. Service -17
c) Private Jobs -37 d) Retired -13
e) Housewife -3

Business
Private Jobs
Housewife
Govt. Service
Retired

2. What is your annual income?

a) Below 1 Lac - 15 b) Between 2 to 4 Lac - 35
c) Between 4 to 6 Lac-25 d) Above 6 Lac – 5
 Below 1 lac
Between 2-4 lac
Between 4-6 lac
Above 6 lac

3. Do you know about IDBI Fortis Life Insurance?

a) Yes - 31 b) No – 49

Yes
No

If yes,
i) Do you have IDBI Fortis Life Insurance Plan?
a) Yes - 25 b) No – 6
 Yes
No

ii) What type of plan you have?

a) Wealthsurance - 16 b) Bondsurance -5
c) Retiresurance - 2 d) Others – 2

Wealthsurance
Bondsurance
Retiresurance
Other

iii) Do you want new insurance plan from IDBI?

 a) Yes - 28 b) No – 3

Yes
No

iv) Is the IDBI Fortis Life Insurance Plans more attractive from others?
a) Yes - 29 b) No – 2

Yes
No

If no,
 i) Are you interested to know about IDBI Fortis Life Insurance?
a) Yes - 27 b) No - 22

Yes
No

4. According to you, the purpose of insurance is:

S. No. Parameters Order of preference

a. Pre-mature death 29
b. Living too long 12
c. Children’s future 11
d. Wealth creation 18
e. Tax saving 10

Pre-mature death
Living too long
Children’s future
Wealth creation
Tax saving
5. What do consider from insurance?
a) Investment area – 23 b) Protection from uncertainties - 41
c) Others – 16

Investment area

Protection From
Uncertainties
Other

6. Insurance sectors investment is better substitute of –

a) Stock Exchange - 25 b) Mutual Fund - 22
c) Loan - 23 d) Others – 10
 Stock Exchange
Mutual Funds
Loan
Other

7. Is the private company better than LIC?

a) Yes - 63 b) No 17

Yes
No

8. Most safe private company of insurance sector

a) ICICI - 30 b) HDFC - 17
c) IDBI Fortis - 29 d) Other – 4

ICICI
HDFC
IDBI Fortis
Other
 FINDINGS
⇒ People are becoming more and more money conscious as I find very
less person who doesn’t want to earn extra money.

⇒ People are very much aware of IDBI FORTIS among private

companies as they respond me first name of IDBI FORTIS and then
others.
⇒ The overall scenario is that still people trust on LIC more than any
other insurance company. Some time when I asked someone to
become an advisor of IDBI FORTIS they misunderstood with LIC. For
them still life insurance means LIC.

⇒ Generally people are having leisure time of around 2-3 hours and
still want to utilize this time to earn extra money, if they can.

⇒ Contrary to the prior thinking most of the people don’t hesitate in

doing field work a roaming in the market for money. They know that
without hard work they can’t earn money.
SUGGESTIONS AND RECOMMENDATION
• Need to create and effectively deploy differentiated strategies in

finding out more resources to recruit insurance advisors.

 • Right prospects identification and thus segmentation, which need to

be appropriate.

• Design and manage sales force, which yields high performance.

More training of the employees can be done so that they produce

best result.

• Recruitment process needs to be slightly fast, so that prospects can

retain some confidence as in starting.

• Need to create better, differentiated detailed brochures for advisor’s

recruitment.

• Increase advisors sales force quality as well as quantity by

employing some HR professional, who time to time take some action

for the improvement of insurance advisors.

• More advertising strategies should be taken to grasp the attention of

those people who want to become insurance advisors.

• Make use of internet banking for increasing sales and also for

promotion.

• There should be more incentives to insurance advisors they are the

backbone of the company in order to increase sales they have to do

mare efforts than others.

Generate some innovative and alternative channels of distribution, using

the sources that can straight play with the emotion of the person and

influence so high that it forces the human being to go for insurance and
that to willingly. Recruit those individuals that really want to take this job as

a challenge.
CONCLUSION
For every insurance company life insurance advisors are the life line and a very
huge asset so each company try to recruit and select a potential force of life
insurance advisors because this is the advisors who generate maximum business
for the insurance company. Insurance advisors provide a very strong support to
the insurance company and do all possible effort to generate huge amount of
profit to the company and for him.

In IDBI FORTIS recruitment and selection procedure is really very impressive. By

the help of this process, company recruits a very good class of advisors. A detail
study is done before starting the recruitment and selection procedure that help the
company to select the best advisors. The recruitment, selection and training
process of insurance advisors is a slight long process because of the training
provided by the Insurance Regulatory and Development Authority (IRDA).

Form the detailed study of recruitment and selection procedure of the insurance
advisors I come on the conclusion that it is a very impressive process carried out
by IDBI FORTIS. This study helps us to understand all the possible aspects
related to the IDBI FORTIS’s recruitment and selection procedure.

WHY SHOULD TO INVEST IN INSURANCE?

10. REASONS TO INVEST IN IDBI LIFE INSURANCE
1. AVAIL OF LOW AND EQUATED CHARGES
Allows better wealth building, since low charges lead to a high investable
amount in the 1st year and every subsequent year.

2. CHOOSE FROM MULTIPLE INVESTMENT OPTIONS

Get the fund of your choice as per your risk appetite and need for safety;
choose from Monthly Interest Account, Guaranteed Return Funds, Capital
Guaranteed Funds, Market Linked Funds and Asset Allocator Funds.

3. PROTECT YOURSELF WITHMULTIPLE INSURANCE BENEFITS

You can avail of insurance benefits to over may kinds of risk- Health Insurance
Benefits, Accident & Disablement Benefits and Waiver of Premium Benefits.

4. FLEXIBLE PREMIUM PAYMENT OPTIONS

Your can decide the amount and frequency of your investment through one –
time, regular (monthly, quarterly and yearly options) and also top- up
premiums to add to your plan as and when you need.

5. OPT FOR GUARANTEED RETURN OPTIONS

For those of you who are looking for safe and steady returns in uncertain
market conditions, you can opt for or switch into Guaranteed Return Funds,
Monthly Interest Account or Capital Guaranteed Funds.

6. GET LIQUIDITY AFTER 3 YARS

To meet sudden financial demands, avail of partial withdrawals after 3 years of
policy inception at no extra charge.

7. SWITCH BETWEEN FUNDS, FEE OF COST.

If your needs change or if you would like to move your money into other fund
options at anytime, you can do so, free cost, as per many times as you wish.
8. MAKE ONE PLAN, GET TWO TAX BENEFITS.
Save tax on the premiums you contribute under Sec 80C, while all returns and
benefits you receive in the future are tax free under Sec101 (10D).

9. GET THE UNIQUE LIFE & TERMINAL ILLNESS BENEFIT.

Get the unique Terminal lllness Benefit which allows for accelerated payment
of the Death Benefit amount if the persons insured id diagnosed as terminally
ill.

10. STRONG PARENTAGE.

IDBI Fortis is a joint- venture between IDBI Bank, India’s premier development
and commercial bank, Federal Bank, one of India’s leading private sector
banks and Fortis Insurance International, a multinational insurance giant
based out Europe.
 APPENDIX QUESTIONNAIRE
INSURANCE MARKET SURVEY QUESTIONARE:
Name: ………………………………………. Contact No.: ……………………………

Sex: ………….Address: …………………………………………………………………

1. What is your full time profession?

a) Business b) Govt. Service
c) Private Jobs d) Retired
e) Housewife
2. What is your annual income?
a) Below 1 Lac b) Between 2 to 4 Lac
c) Between 4 to 6 Lac d) Above 6 Lac
3. Do you know about IDBI Fortis Life Insurance?
a) Yes b) No
If yes,
i) Do you have IDBI Fortis Life Insurance Plan?
a) Yes b) No
ii) What type of plan you have?
a) Wealthsurance b) Bondsurance
c) Retiresurance d) Others
iii) Do you want new insurance plan from IDBI?
a) Yes b) No
iv) Is the IDBI Fortis Life Insurance Plans more attractive from others?
a) Yes b) No
If no,
i) Are you interested to know about IDBI Fortis Life Insurance?
a) Yes b) No

4. According to you, the purpose of insurance is:

S. No. Parameters Order of preference

a. Pre-mature death
b. Living too long
c. Living death
 d. Children’s future
e. Wealth creation
f. Tax saving

5. What do you consider from insurance?

a) Investment area b) Protection from uncertainty
c) Others
6. Insurance sectors investment is better substitute of –
a) Stock Exchange b) Mutual Fund
c) Loan d) Others
7. Is the private company better than LIC?
a) Yes b) No
8. Most safe private company of insurance sector
a) ICICI b) HDFC
c) IDBI Fortis d) Other

9. Please give references of two people those who might be interested Insurance.
i) Name: ……………………………………………………
Address: ………………………………………………..
………………………………………………..
……………………………………………….
………………………………………………..
Phone No: ………………………………………………

ii) Name: …………………………………………………..

Address: ………………………………………………..
……………………………………………………..
……………………………………………………..
……………………………………………………..
Phone No: ………………………………………………

Sign: ……………………………… Date:…………………………

 BIBLIOGRAPHY

Books:
 • IC 33 Life Insurance (Revised), Insurance Institute of India

• Ravishankar, Marketing of insurance services

• Survey of Indian Industry 2008 (Hindu Publication)

• P N Agarwala, A Comprehensive History of Business in India

Journals and Magazines:

• Journal Of Insurance & Risk Management , June 2008

• Journal Of Insurance & Risk Management, June 2008

• IRDA Journal, March 2008

Websites:

• www.idbifortis.com
• www.domain-b.com
• www.etstrategicmarketing.com
• www.indiainfoline.com