• Term Life
  • Investment

IDBI Life Lnsurance

IDBI Federal Life Insurance Company got its IRDAI license to operate in the year 2007. The life insurance company is a joint venture with IDBI Bank, Federal Bank, and Ageas Insurance Company which is based in Europe. The distribution of IDBI Insurance products is done through Insurance agents, Bancassurance partners, Insurance brokers, and direct channel. The insurance company made a record profit of INR 80 crore in the first 5 years of its operation and has maintained good profit trajectory over the years. The company has its headquarters in Mumbai.

Introduction to IDBI Federal Termsurance Sampoorn Suraksha Micro-insurance Plan

Termsurance Sampoorn Suraksha Micro-insurance Plan is a non-participating pure term insurance plan offered by IDBI Federal Life Insurance Company. The term insurance plan has been designed in such a way that it is very affordable, especially for the low-income section of the society. The term insurance plan provides vital financial security for the members, in case of unfortunate demise of the breadwinner of the family (insured person). The plan has a convenient pay option of regular or single premium for the policyholders to choose from. The plan comes with the in-inbuilt advantage of additional accidental death benefit rider. The sum assured in this life insurance policy stays uniform for the entire policy term.

Features of Sampoorn Suraksha Micro-insurance Plan

Policy Term The policy term in this term insurance plan ranges from a minimum of 5 years to a maximum of 10 years. Premium Payment Term The premium paying term in the policy is equal to the policy term or single. No Medical Examination required To get enrolled in the policy, there is no medical examination or test required on behalf of the applicant/policyholder. Premium Payment Mode The policy has only annual premium mode option in the term insurance plan. Sum Assured/Life Cover The minimum sum assured offered in the term insurance policy is INR 5,000 and the maximum is INR 50,000.

Benefits of Sampoorn Suraksha Micro-insurance Plan

Death Benefit

The basic purpose of the term insurance plan is to offer financial security to the family in terms of death. The death benefit paid will be the highest of –

  • 10 times of the annualised premium paid in the policy. If the age of the policyholder is 45 years or above, then it will be 7 times of the annualised premium paid in the policy.
  • 105% of all the premiums paid at the time death of the policyholder
  • Sum assured

Accidental Death Benefit

The Termsurance Sampoorn Suraksha Micro-insurance Plan has an inbuilt accidental death benefit rider. If the policyholder dies in an accident, then an additional amount which will be equal to the sum assured will be paid to the nominee mentioned in the policy document. Tax Benefit for premiums paid and death benefit received The premiums paid for the term insurance policy are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. The death benefit received is also free from tax under Section 10(10D) of the Income Tax Act, 1961. The tax regulations are subject to change. Hence, it is advisable to refer to the latest tax terms and conditions at the time of purchasing the policy.

Maturity Benefit

Termsurance Sampoorn Suraksha Micro-insurance Plan is a pure term insurance plan and hence, it does not have any maturity benefit. This means that if the policyholder survives the policy term then nothing is paid back as per the terms and conditions of the policy.

Eligibility Criteria of Sampoorn Suraksha Micro-insurance Plan

Eligibility MinimumMaximum
Age of entry18 years 55 years
Age at maturity23 years60 years
Medical examination/ TestNot required Not required

Plans offered by IDBI Federal Micro Insurance

IDBI Federal offers only one micro insurance term insurance plan i.e. Termsurance Sampoorn Suraksha Micro-insurance Plan. The plan has been customised specially to cater the needs of the rural customers in India. Due to the single plan on offer the selection process has been simplified for the customers.

Other Details of Plan Sampoorn Suraksha Micro-insurance Plan

Non Forfeiture Benefits

The policy does not have non-forfeiture benefits for regular paying premium mode. Loan A loan cannot be taken against this policy.

Change of Nomination

The policyholder is allowed to change the nominee in the term insurance policy anytime during the active tenure of the plan. Alternation in policy There is no change or alternation allowed in the policy.

Surrender Value

If the policy payment is done in single premium, then on surrender of the policy, 60% X Single Premium paid X (Outstanding coverage term in months / Total coverage term in months The policy does not accumulate any surrender value in regular premium payment mode. Applicability of Tax Goods and service tax (GST) and cess will be levied on the premium payable as per the prevailing tax rules and regulations by the Government.

Free Look period

The policy offers a free look period of 15 days. If after buying the term insurance policy, the policyholder is not satisfied with any of the features or terms of the policy, then he/she can cancel the policy. The communication of cancellation needs to be done in writing within 15 days of the commencement of the policy with the objections or reasons for cancellation. The life insurance company will refund the premium after deducting premium for the number of days of cover provided, plus any other applicable expenses like stamp duty etc. Once the policy is terminated all the benefits will stand nullified.

Grace Period

The policy has a grace period of 30 days from the date of last premium due in regular premium payment mode. All the benefits of the policy will remain active in the grace period of the policy and claims made during the grace period will be paid by the life insurance company.

Revival

If the policy lapses due to non-payment of premium, then it can be revived within a period of 2 years subject to the board’s approval and company’s underwriting terms and conditions. Normally, revival is approved by the life insurance company, if the insured person’s health condition is satisfactory. The policy can be revived by the policyholder by paying the premiums which are due along with 5% per annum interest rate. For single premium, this revival clause does not arrive.

Product Details

The following table displays some of the important details of IDBI Federal Termsurance Sampoorn Suraksha Micro-insurance Plan

Eligibility MinimumMaximum
Sum AssuredINR 5,000INR 50,000
Premiums
INR 100 for Regular Premium
INR 400 for Single Premium
INR 5,200
Policy Term5 years50 years
Premium payment frequency Single or Regular premiumSingle or Regular premium
Premium Payment Mode Annual Premium payment modeAnnual Premium payment mode

Premium detail

The following table displays premium amount to be paid in regular premium and single premium mode.

Term Sum Assured
Regular premium (per annum) Single premium (per annum)
5 years 10 years 5 years 10 years 5 years 10 years 5 years 10 years
Age of entry INR 100 Premium INR 200 Premium INR 400 Premium INR 800 Premium
(In Years)
30 17,922 16,577 35,843 33,155 20,893 11,551 41,785 23,102
35 16,274 15,052 32,548 30,105 18,579 9,785 37,158 19,570
40 13,605 11,947 27,211 23,894 15,037 7,446 30,073 14,893
45 10,196 8,610 20,392 17,220 10,846 5,203 21,691 10,406

Documents required for Sampoorn Suraksha Micro-insurance Plan

The life insurance companies will require certain documents from the applicant applying for a term insurance policy. The documents need to be attached with the application form at the branch office. The documents can be uploaded on the insurance company’s official website or can be sent through mail or courier. The documents need to be self-attested by the applicant. Normally, the life insurance companies ask for these documents before issuing the term insurance policies.

Income proof

The life insurance companies normally cover up to 20 times of annual income subject to the conditions of the plan. In IDBI Federal Termsurance Sampoorn Suraksha Micro-insurance Plan, a maximum life cover amount of INR 50,000 is provided. The income proof is also to ascertain if the policyholder has the capacity to pay the premiums on time. The income proof documents which are normally accepted by the life insurance companies are:

  • Salary slip for the last 3 months
  • Income tax returns for the last 2 to 3 years
  • Bank statement of last 6 months
  • CA certified copy in case of policyholder having a business
  • Form 16 of Current financial year

Address Proof

Address proof is also required. The following documents are accepted by the Life Insurance Company as address proof-

  • Lease agreement
  • Original driving license with mention of the current address
  • Telephone / Electricity / Gas bill /Water Bill should be less than 3 months old
  • Passport copy
  • Ration Card copy
  • Voter ID card copy
  • Aadhaar Card copy

Identity Proof

To ascertain the status of a person in a country, identity proof is needed by life insurance companies The following documents are accepted as ID proof by the life insurance company:

  • Passport
  • Voter Id card
  • Aadhaar Card
  • PAN Card

Age Proof

The premium of a policy is largely dependent on the age of the person. Hence, an age proof is very important to submit to the life insurance provider when applying for term insurance. The following valid documents can be submitted for age proof.

  • Marriage certificate
  • Ration card
  • PAN Card
  • Passport
  • Aadhar Card
  • Voter Id card
  • Birth certificate
  • Driving License
  • School/College leaving certificate

Exclusions - Sampoorn Suraksha Micro-insurance Plan

There are some provisions and clauses in a policy which eliminates coverage for some types of situations and these are called exclusions. The scope of life coverage in an insurance agreement is narrowed by exclusions. Life Insurance Companies apply exclusions in their insurance agreement to carve out coverage for the risks which they are not able to or are unwilling to insure. If the policyholder claim is subject to any of the mentioned exclusions in the policy document, then the claim may be rejected by the life insurance company. Hence, it is advisable to read all the exclusions mentioned in the policy before accepting and buying the term insurance policy. Let’s see what are the exclusions mentioned in IDBI Federal Termsurance Sampoorn Suraksha Micro-insurance Plan.

Suicide Exclusion

In case the policyholder, whether sane or insane, commits suicide within the 12 months of commencement or issuance of the policy, then the insurance company is not liable to pay out the life insured amount. The insurance company will only pay out 80% of all the premiums paid as on the date of the death. In case of a revival of a lapsed policy, the 12 months suicide exclusion clause will re-apply.

Accidental death exclusion clause

Accidental death means an unforeseen, sudden and involuntary cause of death by visible and external means. Accidental death is defined as death due to bodily injury and independent of all other causes of death. To claim accidental death benefit, the death needs to happen within 180 days from the date of the accident.

The life insurance company is not liable to pay any accidental death benefit if the death of the policyholder is caused due to the following circumstances-

  • Self-inflicted injury , suicide attempt, whether sane or insane or under the influence of alcohol, drugs or any other narcotic substance.
  • If the cause of the death was due to participation in riots, war, protest, invasion, civil commotion etc.
  • Due to participation in adventure sports and dangerous activities like racing, mountain climbing, paragliding, hunting etc.
  • If the policyholder is involved in any illegal activities, breaching any law with criminal intent
  • If the death occurs after the period of 180 days of the actual date of the accident.

Review of Sampoorn Suraksha Micro-insurance Plan

The government of India, over the years, has been coming up with various schemes to uplift and secure the lives of the low-income sections of the society. The welfare schemes are to encourage low-income groups to start investing in order to secure their lives financially. IDBI Federal Termsurance Sampoorn Suraksha Micro-insurance Plan is a good initiative by IDBI Federal Life Insurance Company to design and promote an affordable life insurance plan. The term insurance plan is very simple to understand and easy to get enrolled in it. There is not much hassle of documentation and also no medical test is required in the application process. The single premium and regular premium option make it easy and flexible for the policyholder to choose a payment option as per their own convenience. The built-in accidental death rider enhances the value of the plan at no extra cost to the policyholder. It is a must buy term life insurance plan for the people who find it hard to invest in term insurance plans which are either out of their reach or do not find themselves eligible due to various other eligibility criteria

FAQs of IDBI Federal Termsurance Sampoorn Suraksha Micro Insurance

What is the amount the policyholder will get if he/she survives the term of this policy?

IDBI Federal Termsurance Sampoorn Suraksha Micro-insurance Plan is a pure term insurance plan and does not offer any maturity benefits on completion of the policy term. The plan is designed to offer financial security to the family members of the policyholder in case of an eventuality.

What if the premiums in the plan are not paid on time by the policyholder?

There is only an annual premium paying mode in this plan. This means the policyholder has to pay the premium only once in a year. If the premium is not paid by the due date, then the policyholder will still get one month grace period in which the policy will remain active. Any claim made in the grace period will be honoured if they're in line with the terms and conditions of the policy. After the completion of one month of the grace period, the policy will get lapsed and it can still be revived within the two years from the date it lapsed. It is to be noted that no claims will be entertained by the life insurance company in the lapsed period of the policy.

What are the circumstances which can result in the termination/ceasing of the term insurance policy?

This policy will stand terminated and all the obligations of IDBI Federal Life Insurance Company will cease in the event of the occurrence of any of the following, whichever comes at the earliest: • If the policy goes in the revival period due to non-payment of premium and is not revived by the policyholder in the two-year time frame provided for the revival of policy. • If the policyholder dies during the active term of the policy, then the company will pay-out the death claim and policy will cease. •If in a single pay policy payment mode, the policyholder wants to opt out of the policy and surrender value is paid by the life insurance company. • If the policy completes the full policy period and the policyholder survives the whole term. •If the life insurance company finds out that the policyholder has committed fraud or misrepresentation, then the insurance company can cease the policy. This can be done by the life insurance company as per Section 45 of the Insurance Act, 1938.

How is the death benefit pay-out made in IDBI Federal Termsurance Sampoorn Suraksha Micro-insurance Plan?

The death benefit pay-out in the IDBI Federal Termsurance Sampoorn Suraksha Micro-insurance Plan is made in lump-sum pay-out to the nominee of the policy.

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