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ANALYSIS OF VARIOUS INSURANCE PLANS OF
IDBI FORTIS LIFE INSURANCE CO. LTD. 1 Floor, H.B. Twin Tower, Netaji Subash Place Pitam Pura, New Delhi-110034
Submitted for the partial fulfillment of the requirement for the award Of
MASTER OF BUSINESS ADMINISTRATION
SUBMITTED TO DR. RAHAT ALI (HOD)
SUBMITTED BY SACHIN KUMAR 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
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
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.
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
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
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 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.
A new era of Insurance
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 (Nonlife), 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.
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.
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: 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 Crystal Clear communication to our partners and
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
Wealthsurance Foundation Plan
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
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 Top-up Premium Rs 20,000 - Rs 49,999 Rs 50,000 - Rs 99,999 Rs 1,00,000 - Rs 2,49,999 Rs 2,50,000 and above
Premium Allocation Charge 1.5% 1% 0.5% Nil
Amount of Regular Premium (per year) Rs Rs Rs Rs Rs
Premium Payment Term (years) 3-4 5-9 10 - 15 - 20 19 3.25% 3% 2.75% 2.5% 2.25% 2% &more 3% 2.75% 2.5% 2.25% 2% 1.75%
14 10,000 - Rs 29,999 4% 3.75% 3.5% 30,000 - Rs 47,999 3.75% 3.5% 3.25% 48,000 - Rs 71,999 3.25% 3.25% 3% 72,000 - Rs 95,999 3% 3% 2.75% 96,000 Rs 2.75% 2.75% 2.5% Rs 2.5% 2.5% 2.25%
2,39,999 Rs 2,40,000 5,99,999 Rs 6,00,000 above
and 2.25% 2.25% 2%
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.
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.
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 certificates government of deposit, securities, corporate treasury bills, bank deposits, paper, securities, commercial
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 closedended 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
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
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
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.
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 Male Mortality Charge 1.8 1.8 2.1 Terminal Illness Charge Total Femal e Terminal Illness Charge Total Mortality Charge 1 0.0 6 1.8 7 1.7 4 0.0 5 1.7 9 6 0.0 6 1.9 2 1.8 5 0.0 6 1.9 1 4 0.0 7 2.2 1 1.9 0 0.0 6 1.9 6
40 2.9 8 0.0 9 3.0 7 2.4 0 0.0 7 2.4 7
45 4.3 1 0.1 3 4.4 4 3.4 3 0.1 1 3.5 4
50 6.9 9 0.2 2 7.2 1 5.2 0 0.1 6 5.3 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.
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.
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 d policy years at the date of Premiu m Regular Premium Payment Term (years) 3-4 5-9 10-14 15-19 20+ yrs yrs yrs yrs yrs
Surrende r 3 4 5 6 7 8 9 10 11 12 13 14 4% 2% Nil Nil Nil Nil Nil Nil Nil Nil Nil and Nil Nil 17.5% 15% 10% Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 20 20% 15% 10% Nil Nil Nil Nil Nil Nil Nil Nil Nil 30% 30% 27.5% 25% 20% 10% Nil Nil Nil Nil Nil Nil Nil 45% 45% 45% 45% 40% 35% 30% 20% 10% Nil Nil Nil Nil 60% 60% 60% 60% 60% 60% 55% 50% 40% 30% 10% Nil Nil
above Or at 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 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
should remember the
Owner paid the money for Insured Person who is either your spouse or child.
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 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 onetime 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.
Age of Insured Person (in complete d years) 8-32 33-37 38-42 43-47 48-52 53-55
PREMIUM TABLE Premium per Rs 1,000 of Maturity Benefit Maturity Period 5 years Rs 778.98 Rs 785.91 Rs 797.78 Rs 819.56 Rs 861.13 Rs 936.36 Maturity Period 10 years Rs 555.28 Rs 567.16 Rs 583.98 Rs 625.56 Rs 700.78 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 Benefit Rs 1,50,000 Discount for 5year Maturity Period 2% Discount for 10-year Maturity Period 3.5%
to Rs 3,99,999 Rs 4,00,000 to Rs 9,99,999 Rs 10,00,000 and above 3% 5.25% 2.5% 4.5%
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 entry(as on last birthday) Maximum Age at entry(as on last birthday) Maximum Age at maturity Minimum Single Premium Minimum Sum Assured Maximum Single Premium and Sum Assured
8 years (For a term of 10 years) 13 years (For a term of 5 years) 50 years (For a term of 10 years) 55 years (For a term of 5 years) 60 years Rs 20,000 Rs 1,00,000 No limit, subject to underwriting
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, halfyearly 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 Loan Cover Policy term Single Premium Regular Premium Rs 10 lakhs 15 yrs Rs 17,797 Rs 2,295
Home Loan Cover Rs 10 lakhs 20 yrs Rs 24,434 Rs 2,564
Home Loan Cover Rs 10 lakhs 25 yrs Rs 32,801 Rs 3,033
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 Minimum entry Maximum entry Maximum which Cover ceases Minimum Term Minimum Insured Maximum Insured 5 yrs Sum Rs 1,00,000 Sum Rs 2,00,00,000 5 yrs Rs 1,00,000 Rs 2,00,00,000 age at 70 yrs 70 yrs age at 60 yrs 60 yrs age Male Female 18 yrs
at 18 yrs
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 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.
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.
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:
at Minimu m Maximu m Minimu m Maximu m Minimu m
18 years 70 years 40 years 75 years 5 years or (40 less age at entry)
Maximu m Premium Minimu payment m Maximu term m Premium Minimu m Maximu m
75 less age at entry 3 years Policy term Rs 10,000 (Rs 1,000 for monthly mode) No limit
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 Rs 1,00,000 - Rs 4,99,999 Rs 5,00,000 and above 85.00% 87.50% 90.00%
Renewal premium allocation rate
Policy year 2 to 4 5 to 9 10th year onwards
Allocation 97% 99% 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 Objective 1. Equity Seeks to invest Fixed and aims to including high and Growth Fund Risk: High in listed stocks Investments Cash Money generate
Income 0 – 50% 50 – 100%
returns picking that growth prospects. aims investing large-cap stocks sectors. 2. Nifty Index Nifty Fund Risk: High Nifty and as
by Market stocks Equities have Equity-linked instruments It to in as and and
diversify risk by
well as mid-cap across multiple Index Fixed stocks including aims closely to and as Equities Equity-linked instruments Income 0 – 20% 80 – 100% Cash Money and
Fund invests in Investments
track the index Market possible.
Investment options for stability and security 3. Bond Fund Seeks to invest Fixed Income 100% Risk: Medium in fixed income Investments investments and aims including to and Cash Money
generate returns interest coupons changing curve. underlying portfolio may be high or low depending upon the market conditions. 4. Income Fund Aims Risk: Low generate return seeking income investments that carry low or 5. Liquid Fund Risk: Low medium and yield The opportunities in from
duration of the
Income 100% Cash Money
a Investments by including to and
invest in fixed Market
market risk. Seeks to invest Money in money other
overnight Cash and Shortand term debt money
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 10 years
Guaranteed Loyalty Units Extra units of 3.0% of the fund value
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 date of surrender 3 4 5
percentage of fund value 5% 2.5% -
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 unitlinked 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 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, halfyearly, 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 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. the purchase price is more than Rs 5
• 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 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.
• • • • 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.
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.
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. II. III. IV. Youth Executive Serviceman 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.
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 c) Private Jobs -37 e) Housewife -3
b) Govt. Service -17 d) Retired -13
Business Private Jobs Housewife Govt. Service Retired
2. What is your annual income? a) Below 1 Lac - 15 c) Between 4 to 6 Lac-25 b) Between 2 to 4 Lac - 35 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
If yes, i) Do you have IDBI Fortis Life Insurance Plan? a) Yes - 25 b) No – 6
ii) What type of plan you have? a) Wealthsurance - 16 c) Retiresurance - 2 b) Bondsurance -5 d) Others – 2
Wealthsurance Bondsurance Retiresurance Other
iii) Do you want new insurance plan from IDBI?
a) Yes - 28
b) No – 3
iv) Is the IDBI Fortis Life Insurance Plans more attractive from others? a) Yes - 29 b) No – 2
i) Are you interested to know about IDBI Fortis Life Insurance? a) Yes - 27 b) No - 22
4. According to you, the purpose of insurance is: S. No. a. b. c. d. e. Parameters Pre-mature death Living too long Children’s future Wealth creation Tax saving Order of preference 29 12 11 18 10
Pre-mature death Living too long Children’s future Wealth creation Tax saving
5. What do consider from insurance? a) Investment area – 23 c) Others – 16 b) Protection from uncertainties - 41
Investment area Protection From Uncertainties Other
6. Insurance sectors investment is better substitute of – a) Stock Exchange - 25 c) Loan - 23 b) Mutual Fund - 22 d) Others – 10
Stock Exchange Mutual Funds Loan Other
7. Is the private company better than LIC? a) Yes - 63 b) No 17
8. Most safe private company of insurance sector
a) ICICI - 30 c) IDBI Fortis - 29
b) HDFC - 17 d) Other – 4
ICICI HDFC IDBI Fortis Other
⇒ 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.
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.
INSURANCE MARKET SURVEY QUESTIONARE:
Name: ………………………………………. Contact No.: …………………………… Sex: ………….Address: ………………………………………………………………… 1. What is your full time profession? a) Business c) Private Jobs e) Housewife 2. What is your annual income? a) Below 1 Lac c) Between 4 to 6 Lac a) Yes If yes, i) Do you have IDBI Fortis Life Insurance Plan? a) Yes ii) What type of plan you have? a) Wealthsurance c) Retiresurance a) Yes a) Yes If no, i) Are you interested to know about IDBI Fortis Life Insurance? a) Yes b) No b) Bondsurance d) Others b) No b) No b) No b) Between 2 to 4 Lac d) Above 6 Lac b) No b) Govt. Service d) Retired
3. Do you know about IDBI Fortis Life Insurance?
iii) Do you want new insurance plan from IDBI? iv) Is the IDBI Fortis Life Insurance Plans more attractive from others?
4. According to you, the purpose of insurance is: S. No. a. b. c. Parameters Pre-mature death Living too long Living death Order of preference
d. e. f.
Children’s future Wealth creation Tax saving
5. What do you consider from insurance? a) Investment area c) Others 6. Insurance sectors investment is better substitute of – a) Stock Exchange c) Loan 7. Is the private company better than LIC? a) Yes a) ICICI c) IDBI Fortis b) No b) HDFC d) Other 8. Most safe private company of insurance sector b) Mutual Fund d) Others b) Protection from uncertainty
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:…………………………
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
• • •
www.domain-b.com www.etstrategicmarketing.com www.indiainfoline.com
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